Survey: Bigger Companies Wield Advantages in the Talent Pipeline

Chicago — June 12

Larger companies hold a considerable edge over smaller companies in recruiting, relocating and on-boarding new employees because they put more money, structure and organizational support behind these activities, according to the 2012 Allied Workforce Mobility Survey.

Still, smaller companies have advantages, too, and there are opportunities to compete head-on with larger firms if they can muster the organizational will to do so, according to the survey of 500 HR professionals in the U.S.

In several respects, smaller companies are equal to or competitive with larger firms:

• A significant portion of small companies are “highly successful” at recruiting and relocation, suggesting that the playing field can be leveled.
• Perceptions aside, small and large companies perform about the same in terms of securing recruits.
• Small firms retain a slightly higher percentage of new employees.
• In certain areas — flexible work arrangements, work environment — small companies are competitive with large companies.

The present survey release is based on a segmentation of results from small companies (less than 200 full-time employees), midsize companies (200 to 2,499 employees), large companies (2,500 to 10,000 employees) and mega-sized companies (more than 10,000 employees). Previous survey results were released April 30 and May 21.

HR professionals at larger companies are more likely to rate their recruiting, relocating and on-boarding programs as “highly successful.” For example, 46 percent of HR professionals at mega-sized companies rate their recruitment programs as “highly successful.”

But it’s not a rule that smaller companies are not as competitive in recruiting. For those that leverage best practices and significant resources, the returns are significant. More than one-quarter of small companies — 28 percent — are “highly successful” at recruiting.

Interestingly, larger-company HR departments are not more likely to be staffed by experts in recruiting, relocating or on-boarding. The percentage of “experts” at companies averages between 19 and 27 percent, regardless of size.

Larger companies are more likely to look beyond the U.S. or regional locations when recruiting.
Four of five mega companies will recruit from international — 25 percent — or national — 57 percent — geographic areas. By comparison:

• Six percent of small companies look internationally and 38 percent recruit across the U.S.
• Ten percent of midsize companies look internationally and 46 percent recruit across the U.S.

Does casting the net wider correlate with more spending for larger companies? Average costs per hire (not including relocation costs) are as follows:

• Small companies — $12,423
• Midsize companies — $7,311
• Large companies — $7,518
• Mega companies — $15,359

Some of the sharpest differences between company sizes come in the area of relocation. Spending across small, midsize and large companies is comparable (between $9,606 and $14,007), but mega-sized companies spend three times as much (averaging $41,052).

Reasons employees are “very likely” to leave before the one-year anniversary are comparable across all sized companies — except in a few areas, which may confirm some assumptions.

Employees are more likely to leave small companies because of job performance or pay, and more likely to leave large companies because of working conditions.

Source: Allied Van Lines