When you ‘re vying with your competition for top talent, every dollar counts. And yet, it may be tempting to simply keep allocating more money toward clicks on your career page, so you don’t miss out on top talent.
How do you strike the right balance: hold onto desired talent until you seal the deal and they apply for your opening, without breaking the bank in the process?
In a nutshell, the top mistake companies make on job boards is overpaying for clicks.
Look more closely at your numbers.
Make sure all your job advertising budget decisions are data-driven.
It’s really not rocket science, nor should it make your eyes glaze over … Just be sure you understand the basics and make informed moves as you effectively allocate those precious budget dollars.
When your conversion rate stays the same or increases, and your cost per click follows the same upward trend, it’s time to decrease the amount you spend per job ad. You can do this by either keeping your daily budget the same and sponsoring more jobs or lowering your daily budget and sponsoring the same number of jobs.
We don’t want to see the conversion rate stay the same and the cost per click increase. We don’t want to see the conversion rate increase and the cost per click increase. Both of those combinations reveal the budget is overpaying for clicks and it needs to be adjusted. If you don’t adjust, then you’re going to waste spend.
Need to take a step back and review the terminology?
Here’s a primer on what some of the key terms mean in the world of job advertising budgets:
- Your cost (or pay) per click measures how much a company gets paid when a candidate clicks on your job ad. When you opt for pay per click, your job listings become sponsored ads and you pay only when your ad is clicked. Typically, you agree to pay a set amount per click or set a daily or monthly budget that corresponds to a certain number of clicks. Prices vary according to a number of factors; for instance, how much visibility you’re aiming for or how long you want to keep a job listing open.
- By opting for a cost-per-application approach, you pay only for actual applications received. Your cost per application is determined at the time you sponsor a job post, based on current market conditions for a particular job. Market conditions refer to the current supply of candidates compared to the current demand of other jobs with similar titles and in the same location.
- Your end goal is a high conversion rate. Your conversion rate tells you how much you are spending, on average, to convert a candidate into an applicant. Determining this figure will give you critical insight into how attractive the job you have posted is to desired candidates.
If it sounds technical, well, that’s because it is. And as a busy business owner or hiring manager, you may need an experienced recruitment marketing partner to help you keep up with it all and make the best, most informed decisions when it comes to allocating your budget dollars. So, reach out to Haley Marketing today and get to know our team during a free, 30-minute recruitment marketing focus call. We’re looking forward to it!