Too many organizations spend their job advertising budget on various job boards based on a feeling. Perhaps they feel like they don’t have another option, or they feel like that known source produces the most candidates. Maybe it is simply just the way they have always done it. I have heard all the above and more. When I ask, how many applicants have you gotten from that source and of those, how many have you hired? I usually get a blank stare or “I have no idea” in response.
Here are two key metrics to start tracking right away that will have positive impacts:
- Source Code tracking (where your candidates came from)
How amazing would it be if you knew where 100% of you applicants came from?
Source A
Monthly cost = $10,000
Monthly Applies = 1000
Source B
Monthly cost = $2,000
Monthly Applies = 350
This is critical information, but if you would make a budget decision based solely on either applicant volume or current total spend, you would be gambling. It’s a gamble because we are lacking information regarding the quality of these candidates. Let’s add in another very important bit of information, KPIs.
- Reportable KPIs (referring specifically to the recruiter’s activities)
For example, # of hires. This information paired with source code and total budget is powerful information. If you compare # of hires against where they came from you can determine both: which source sends high quality candidates & ROI per each source.
Source A
Monthly cost = $10,000
Monthly Hires = 3
Cost per hire from A = $3,333
Source B
Monthly cost = $2,000
Monthly Hires = 10
Cost per hire from B = $200
Strategic Goal Setting
Who doesn’t love to take what is working and make it BETTER? I know I do.
Once you combine the source and KPIs – you have much greater insights to adjust your budget to reach you goals more effectively and efficiently.
Source A costs more money but they sent you 1000 candidates! At first glance that looks very appealing. However, when you combine the KPIs and Source code tracking, you see that Source B is significantly a better deal at $200 per hire vs $3,333. Applicant volume is great but if your team is spending over half their day declining unqualified applicants, it’s not a good use of time. Out of the 1,000 candidates from Source A you only hired 3. Your team spent a ton of time working with the other 997 that were not a fit. I am confident your recruiters are very busy, but are they busy doing the right things to get you that next rockstar hire? In this case – no. Their time needs to be redirected to finding the right candidates and this data has helped determine how to do that.
Recruiting can feel like guess work. I am here to reassure you, there is a science behind the magic. It all starts with a solid and consistent foundation that can generate data. Data is key and without it, your recruiting strategy is like gambling in Las Vegas and the results are left to chance.