Amid Rising Inflation and Worker Desire for Higher Wages, Bluecrew Reveals Hidden Costs Associated with Recruitment and Employment

Leading Workforce-as-a-Service Platform Uncovers Data around How Much U.S. Businesses are Spending to Recruit, Employ, and Retain Today’s Hourly Workforce

CHICAGO--()--As companies look to retain talent amid the uneven recovery of the post-pandemic labor market, Bluecrew, the first W-2 Workforce-as-a-Service platform providing workplaces with high-quality hourly workers, today unveiled data around how much American businesses spend annually to recruit, employ, and retain an hourly workforce. Findings from the report, “The True Cost of Recruitment and Employment,” show that, on average, the annual turnover for hourly workers can be as high as 49%. As inflation drives many workers to look for better paying jobs or ways to supplement their current income, it can cost employers more than $6,700 to replace a single worker making $15 per hour.

Various factors––such as losses incurred to the employer by not filling a position efficiently and effectively, replacement costs, and the ultimate price of a bad hire––add up to the true cost of recruitment, to which businesses across the country are losing thousands of dollars annually. In fact, turnover for a 50-person workforce could cost companies more than $168,000 per year.

“The price of hiring or replacing employees is no minor line item, yet it’s often ignored. The high costs associated with recruitment shouldn’t just be accepted as a part of doing business,” said Bluecrew Chief Customer Officer, Matt Laurinas. “Bluecrew is on the forefront of lessening the burden of the hiring costs it historically takes to find, employ, and keep the best workers for each job. Our platform enables companies to easily manage the variable demands of their business with a flexible hourly workforce that doesn’t require the up-front costs in both time and resources, nor the ongoing costs to retain talent.”

Key Findings ––

The True Cost of Recruitment:

  • A vacancy for a single worker earning $15/hour costs businesses at least $5,832 annually in missed revenue and underutilized resources alone.
  • The cost of a bad hiring decision can be as high as 30% of the worker’s annual wage.
  • Every $15/hour employee hired has to work for approximately six months to break even on recruiting cost alone.

Between HR’s time spent and basic hiring tools utilized, employers spend at least $889 filling just one position. With added costs for missed productivity and workplace impact, it’s no surprise how quickly the expenses climb when recruiting new employees – and the costs don’t stop when the position is filled.

The True Cost of Employment:

  • The real-life mark-up on recruiting and employing one $15/hour employee for a year is around 63%. Employers spend nearly $19,400 on taxes, insurance, benefits, recruiting and ongoing management in one year.
  • To hire a 50-person workforce and stay fully staffed, an employer would have to conservatively hire 90 workers over the course of a year; the total cost of which could be upward of $603,000.
  • Companies using Bluecrew are saving, on average, $7,190 per worker, annually.

“While the job market has rebounded in recent months, many of the industries most impacted by the hourly workforce––including retail, manufacturing, and hospitality––are still struggling to find employees,” continued Laurinas. “As experts remain split on the exact timing and severity of a potentially impending recession, inflation and employee desire for higher wages make it more important than ever for employers in these and other sectors to retain talent and minimize company expenses.”

Bluecrew fills over 90% of jobs posted within minutes, compared to traditional staffing agencies that fill only 60-70% over several weeks. For more on the platform, visit


The True Cost of Recruitment and Employment study compiles recent data from credible public resources to provide an overview of the hidden costs associated with how much American businesses spend annually to recruit, employ, and retain an hourly workforce. This includes unemployment tax rates compiled from Patriot Software, LLC; employer costs around employee compensation retrieved from the U.S. Bureau of Labor Statistics; payroll resources from Federal Unemployment Tax Act (FUTA); insurance costs, coverages & providers from EPLI Insurance; retail turnover rates retrieved from DailyPay; and workers’ compensation insurance rates collected by WorkCompLab.

About Bluecrew

Bluecrew is the first fully compliant Workforce-as-a-Service platform combining the power of flexible W-2 labor, workforce management technology, and actionable data and analytics for businesses with fluctuating demands and labor needs, as well as hourly-workers seeking flexible yet stable employment options. Bluecrew blends the reliability of traditional W-2 work with the technology and flexibility of the gig economy, all within a powerful and easy-to-use mobile app. Through its data-driven technology, Bluecrew enables seamless workforce scalability by matching businesses––across 25+ markets, spanning warehousing, logistics, catering, hospitality, manufacturing, and more––with over 100,000 pre-vetted, work-ready “Crew Members,” ensuring the most qualified workers and best matches for each job, every time.


Olivia Civiletto Erwin

Social Media Profiles


Olivia Civiletto Erwin