How to Measure Recruitment Success of Pay-Per-Applicant Campaigns
Just like any other marketing initiative, the success of every Pay-Per-Applicant (PPA) recruitment campaign needs to be measured to understand its effectiveness and determine the Return on Investment (ROI).
This information not only helps identify areas for improvement but also provides valuable insights into which strategies are working best, guiding future decisions about ad content and investments.
5 Key Metrics to Measure Recruitment Success in PPA Campaigns
To establish recruitment marketing benchmarks for PPA, begin by conducting research on industry standards and best practices related to the specific metrics you wish to track.
You can refer to industry organisations like the Society for Human Resource Management (SHRM), which often publish benchmark reports providing data on average recruitment metrics across various industries and job functions.
Specifically for PPA recruitment campaigns, key metrics to consider include:
1. Quality of Applicants
This is one of the most critical metrics in a PPA model. Are you attracting suitable candidates for your roles? Measuring the quality of applicants can be a subjective process, but there are several methods you can use. Here are some common approaches:
A. Resume/CV Evaluation
Review the resumes or CVs of applicants to assess their relevant skills, experience, and qualifications. Look for indicators that align with the requirements of the job position, such as relevant education, work experience, certifications, or achievements.
B. Screening Criteria
Establish a set of screening criteria that candidates must meet to be considered high quality. This can include specific qualifications, years of experience, or specific skills. Use these criteria to assess applicants during the initial screening process.
C. Interview Performance
Conduct structured interviews and evaluate applicants based on their performance during the interview process. Assess factors such as communication skills, problem-solving abilities, cultural fit, and overall professionalism. Consider using behavioural-based questions to gain insight into their past experiences and performance.
2. Number of Qualified Applicants
While the PPA model ensures you only pay for qualified applicants, the number of qualified applicants you receive is still a crucial metric.
If the numbers are lower than expected, you may need to adjust your job ad copy and use a programmatic job ad platform that will automatically optimise the targeting to reach more qualified candidates.
3. Time to Fill
Time to fill is a critical PPA metric that measures the amount of time it takes to fill a job opening. According to SHRM, the average time to fill a role across all industries is 36 days. However, if you’re in a competitive space, it can be 45 days or more.
Monitor how quickly you’re able to fill open positions. If your time to fill is decreasing, it suggests your PPA campaign is effective and attracting the right candidates promptly.
4. Cost Per Hire
To calculate the cost per hire of your PPA recruitment campaign, you need to consider all the expenses associated with the hiring process and divide it by the number of hires made. This gives you an idea of the financial efficiency of your recruitment process. Here’s a step-by-step guide:
- Decide on the time frame for which you want to calculate the cost per hire, such as a specific quarter or year.
- Identify cost categories including expenses related to job advertisements, recruitment agencies or platforms (ATS, programmatic job ad platforms, etc,), career fairs, employee referrals, and other sourcing methods, internal staffing costs, and marketing. You can also include post-hire costs like onboarding and training if required.
- Collect the specific cost figures associated with each category during the chosen time frame. This may involve reviewing invoices, payroll records, or financial statements.
- Add up the costs from each category to calculate the total cost of hiring during the specified period.
- Count the total number of hires made during the same time frame.
- Divide the total cost of hiring by the number of hires to get the cost per hire.
This calculation provides an average cost per hire, giving you insight into the expenses incurred for each successful candidate brought into your organisation. Remember to review and update your cost-per-hire calculation periodically to account for changes in recruitment strategies, cost structures, or other factors that may impact the overall expenses of the hiring process.
5. Applicant Satisfaction
Gather feedback from candidates about their application experience. This feedback can provide insights into the effectiveness of your job ads and the application process, which can be critical for improving future campaigns. There are many ways to gauge applicant satisfaction we feel the most important ones are:
A. Conversion Rates
Monitor the conversion rates at each stage of the recruitment process. Calculate the percentage of candidates who progress from one stage to the next (e.g., application to interview, interview to offer). A low conversion rate may indicate issues affecting applicant satisfaction.
B. Surveys
Consider sending out post-application or post-interview surveys to candidates to gather feedback on their experience. You can choose to use structured questionnaires or rating scales to collect quantitative data, include open-ended questions to capture qualitative feedback and suggestions for improvement, or simply adopt the Net Promoter Score methodology, which involves asking candidates how likely they are to recommend your company or the recruitment process to others. The NPS provides a single numerical score that indicates the overall satisfaction level which is easy to compare against your benchmarks.
C. Exit Interviews
Conduct exit interviews with candidates who withdraw from the process, decline job offers, or leave within a short period of time after starting the job.
This provides an opportunity to understand their reasons, gather feedback, and identify areas for improvement.
By paying attention to each of these five metrics, you can more accurately measure the success of your PPA recruitment campaigns, ensuring you’re getting the best possible return on your investment.
Improve Your Success Metrics with a PPA Job Ad Platform
PPA job ad platforms — sometimes called recruitment marketing or programmatic job ad platforms — use a blend of automation, AI, and human expertise to help organisations achieve better results with less effort.
To learn more about Hirematic or how to succeed in PPA recruitment marketing, download our guide: Metrics for Success in Recruitment Marketing.
