How do companies know when to increase their recruitment budget?
Most of the time it’s through frustration with the current results. That leads to just spending more and not spending smarter. We don’t want to see companies do that! In other instances, it’s when companies want to be aggressive, and that’s when spending smarter is the right strategy.
For a healthcare company in California, they wanted to be more aggressive in their recruitment strategy for a six-month period but wanted to be very smart with that increased spending.
As a current client of Haley Marketing’s programmatic job advertising management program, they came to us with their challenge, and we worked together to create the right plan.
To spend smarter with the budget increase, we slowly increased the budget on a monthly basis and tracked the cost per application. Why the cost per application? That metric revealed if the budget increases were leading to similar economies of scale. For example, if we just double the budget, that could lead to bad results of overpaying for clicks and applications. In your market and industry, there are a finite number of candidates. Just throwing more money at the area won’t guarantee applications.
To avoid being reckless by increasing the budget by 100% and doubling it quickly, we segmented the increases. Usually increasing by about 30 to 40% per month. That allowed us to be moderately aggressive with the budget increase and to track what was happening on a per application basis with hopes of maintaining (or increasing) the economies of scale.
The budget increased started in Q4, and saw good results at the start. Our cost per application decreased by 16.8% throughout Q4, which is great. We doubled the budget and increased our applications by 119%! That’s more than an straight 1-for-1 increase.
Comparing the end of Q3 to all of Q1, the client increased its budget by a monthly average of 75% and saw a monthly increase of 203%!
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When you’re looking to increase your monthly recruitment budget or just want to learn more about your recruitment budget metrics, our team is here to help. Contact us today!