With over 2,500 job posting sites on the Internet, hundreds of newspapers, and a multitude of job fairs to choose from, on a limited budget, it can seem overwhelming to determine the most effective ways to spend recruitment dollars. The goal is to achieve the highest qualified response rate per dollar spent. Incorporating a thorough, well-planned, Internet campaign into your current recruiting strategy will significantly increase the exposure of your positions and decrease your cost per hire. The key to success is spending the time up front to develop a well-planned marketing strategy. Continue to think strategically about the most efficient and effective ways to reach your target market.
Reallocation from search fees. I have heard of companies spending $500,000 to $1,000,000+ per year in search fees. There can be some serious reallocation here. Example. If you pay 25% fees and your average new hire earns $60,000, you are paying, $15,000 per hire. If you reduce your search fees by just 4 hires in one year, you will have $60,000 for an Internet campaign. Spend that money strategically on the Internet you will easily secure 4 hires and probably several more. If you currently keep good metrics on your cost per hire by advertising medium, the reallocation process becomes much easier. Reallocate from those resources that currently have the highest cost per hire associated with them. If you don’t have metrics available and cannot readily calculate them, then develop a reallocation plan that balances resources. Every resource has value so we do not recommend wiping any of them out completely. Lesson Learned: With thorough planning and strategic analysis, you can develop a very strong Internet campaign without increasing your recruitment budget or compromising the benefits from your other recruitment resources. Part 2 of this series will cover determining the best way to allocate the resources that you have now dedicated to the Internet.
