Most job searches start with a search engine, and a smart search engine marketing (SEM) strategy can determine whether or not your jobs get found and filled. By using paid search tactics to amplify your job postings, you can reach more qualified candidates and make the best hires faster.
If you’re like most employers, you may be thinking, that sounds great, but how do I know how much money to spend? Here we’ll break down what you need to know to demystify the budget-setting process.
Understanding key hiring metrics for budgeting
According to Indeed Director of Employer Insights Kevin Walker, before you can set an optimal campaign budget, you need to understand your apply rate and hire rate, and how they impact your investment.
Apply rate: The total number of people who see your jobs—often represented as total traffic to your career site—divided by the number of people who actually apply.
Hire rate: The percentage of applicants who actually get hired.
These ratios are specific to your company and vary based on the organization, location and industry you’re hiring for. You can find your apply and hire rates using your career site traffic metrics and data from your applicant tracking system, or by working with our team at Indeed. We collect more than 6 terabytes of click data every day and can pair our data with yours to determine these rates with high accuracy.
The next step is identifying the number of hires you need to make. With this number as a final destination, you can work backwards up the recruitment funnel to determine the number of applies and clicks on your jobs you need to meet your hiring goals.
Bringing it all together
It’s important to remember that your total click traffic includes both free and paid clicks on your jobs, and your average cost per click depends on the specific job title and location for the position you’re trying to fill.
This is where Indeed’s massive pool of click data comes in handy again. We can use this data to show you how much of your traffic is organic and how much is paid, and we can tell you the average cost per click for your exact job title and location.
With these metrics in hand, the budgeting question becomes a simple math problem. Your total budget is found by multiplying the total number of clicks you need by your average cost per click. Then by dividing your total budget by your average time to fill, you can identify your optimal monthly budget.
[ Total Clicks x Average Cost Per Click = Total Budget ]
Average Time to Fill
By educating yourself about these key hiring metrics and how they help determine your ideal budget, you’re better armed to start building successful, cost-effective campaigns. To get started, contact Indeed Client Services by phone at 1-800-462-5842 or contact us here.
For more information on leveraging smart SEM tactics, download our ebook, How to Build an Inbound Recruiting Strategy That Attracts Great Candidates.