ROI Optimisation for Recruitment Marketing
Measuring the return on investment (ROI) for recruitment marketing can be challenging. Traditional ROI calculations involve subtracting the initial cost of an investment from its final recruiting value, dividing that number by the cost of the investment, and multiplying it by 100.
How to Measure ROI on Recruitment
However, recruitment marketing involves various costs and is influenced by external factors such as market trends and seasonality, making it more complex to get to an accurate ROI number. It is therefore also important to keep track of benchmarks to see if your costs are within typical range.
In this article, we will walk through a number of steps that will help you with ROI optimisation based on your unique business challenges.
Reducing the Cost of Recruitment Marketing
According to the Society for Human Resource Management’s latest recruiting metrics benchmarks, the average cost per hire is approximately $4,700. However, depending on your business’s size, scope, and the positions you are recruiting for, this figure can be three to four times the position’s salary. If you are hiring a large number of employees at once, costs can quickly add up. Recruiting new staff involves a significant amount of work. The recruitment process can consume a considerable amount of your internal team’s time and expenses related to job ad placement can be eye-wateringly high.
So how can you optimise your recruitment marketing to keep costs under control?
1. Employer Branding
Build a strong employer brand to attract candidates who are a good fit for your organisation. This can help reduce costs associated with high turnover rates and candidate drop-off rates.
2. Employee Referral Programs
Encourage your existing employees to refer candidates through a structured referral program. This can save you money on recruitment advertising and lead to higher-quality candidates.
3. Optimised Advertising
Instead of spending a large amount of money on broad advertising, target your recruitment ads to reach specific audiences. Use demographic data and social media targeting to get your job ads in front of the right people.
4. Data Analysis
Use data analysis to determine the most effective recruitment channels and job posting sites for your organisation. By analysing your recruitment marketing metrics, you can focus your efforts on the most effective channels and save money on less effective ones.
5. Work with Recruitment Marketing Experts
Consider partnering with recruitment marketing experts who can help you optimise your recruitment strategy and manage costs. These experts can provide insights into the latest recruitment marketing trends and technologies, and help you design effective recruitment campaigns.
Identify and Address Recruitment Marketing Challenges with Programmatic Job Advertising
Proving the ROI of your recruitment marketing begins with identifying key business challenges that your marketing efforts are solving. Below are the three most common challenges we see in the industry to get you started:
Business Challenge #1: Talent acquisition managers are struggling to source quality workers.
Talent shortages that emerged around the Great Resignation aren’t going away any time soon. Despite the ongoing news about mass layoffs in some industries, recent employment numbers published by Canada and the US show unemployment rates of 5% and 3.4% respectively. In the current environment, analysts expect the unemployment rate to increase slightly but still remain far below historically “normal” levels.
Programmatic job advertising can help you find more qualified applicants to fill roles, faster.
The platforms automate everything and provide you with the ability to maximise job offer visibility with automated distribution and replication. A recent research study found 57% of companies that are using programmatic advertising plan to increase their investment in it as it is so effective.
Business Challenge #2: The cost of recruitment marketing is increasing.
The average cost per candidate application (CPA) rose by 43% in 2021 compared to 2020. And even if ad budgets increased to reflect this new reality, many ad campaigns are not optimised.
Programmatic job advertising delivers a lower CPA on job ads and offers the ability to improve performance on existing job ad channels and reduce cost per click on job ads.
Aptitude Research describes a programmatic model as a “cost savings solution, designed to help companies reduce spend and make performance-driven decisions that will ultimately save money by replacing ineffective advertising methods.”
Business Challenge #3: Many job ad budgets are squandered on pay-per-click campaigns that don’t yield results.
Aptitude Research found that up to 40% of job advertising budgets are wasted due to inefficient cost-per-click (CPC) deals or manual or low-frequency ad optimisation practices.
Programmatic job advertising provides greater transparency into ad budget performance so you can see which channels are driving results and which ones are not.
Research found programmatic job advertising boasted 51% better job ad targeting and 48% improved campaign effectiveness.
Need Help Optimising Your ROI for Recruiting?
To learn more about optimising the ROI of recruitment marketing, see how Hirematic can help you be an efficient hiring manager and reduce costs.
