HR Managers, Evaluate HR Campaign Effects!
18. July 2018
My whole experience confirms that HR managers hardly ever monitor and evaluate the effectiveness of various communication channels, or just inaccurately. Most often, I can hear “I publish on Jobs.cz, occasionally in the newspapers, also on Facebook. It costs around 20,000 CZK/month”. When I put an additional question, i.e., about effects of such campaign, the usual answers are shrugged shoulders or, in an optimistic scenario, more or less accurate figure expressing the number of received CVs for the particular month.
As a performance-oriented person, I would be – at least a little bit – disturbed not to know sources sending me CV resumes. It is true that in case of a leaflet and advertisement displayed on Jobs.cz such information is available only per request, which is not used by HR managers very frequently (no systematic review). Maybe that is the reason why HR professionals are afraid to stop advertising on Jobs.cz or, as the case may be, to limit their promotion. They are not able to analyze received benefits.
Should other paid sources be included in the recruitment strategy, also from the online marketing (Facebook, advertising banners on Sklik or AdWords, or other specialized websites such as Winwinjob.cz, Startupjob.cz etc.), the need to assess all costs paid for various sources will be quite stronger. What metrics should be monitored by every single HR manager to be able to assess the effectiveness and meaningfulness of a wide variety of sources? See the following two main recruiting metrics:
Cost Per Resume – cost to receive a qualified candidate resume
Cost Per Hire – costs to recruit someone
In case of the “Cost Per Resume”, you will be seriously interested in relevant resumes only – do not calculate the price of all received CVs, but only relevant responses of job candidates to be invited for the interview. Analyze applied metrics per individual sources, maybe you will be greatly surprised by the result. Your marketing department should deliver you results of the individual sources; alternatively, after Google Analytics training within OnlineHR, you will be able to carry-out your own analysis.
Some Practical PointsCalculate your Cost Per Hire at two levels:
- direct sources (e.g., a person, recruited through Jobs.cz, could cost CZK 12,000; recruited through Facebook CZK 8,000).
- all sources in the aggregate. The metrics will help you to identify how the of your recruitment investments improves over time.
You evaluate the price of one received CV in the level of sources in cooperation with the marketing department, or by Google Analytics for personalists by yourselves, following our training. You will compile a simple table; the first column will show sources of advertisements, the others will display:
- job position advertised (various sources will be assigned with various relevance);
- promotion expense for specific advertisement;
- number of all advertisements;
- number of relevant responses (CV);
- share of relevant responses;
- price of the relevant response.
In practice, the table should show the following values comparing one job position (an accountant), identical expenses (in reality differing), and more sources (a model case):
The model table shows several interesting notes:
Approximately comparable number of advertisements was received; however, the banner advertisement was the most relevant source (from the percentage point) - more than every second response was relevant – 60% *.
From the point of the expenses to receive relevant responses, the Facebook campaign was the most effective, i.e., 666 CZK/response*.
Provided that an accountant is hired in the particular period (e.g., month), Cost Per Hire, i.e. the recruiting costs per hire will amount to the pure sum of all costs paid for these campaigns, i.e., CZK 30,000 *.
*Real prices may be lower as well as higher. Depends on the optimization of campaigns, their targeting, and duration.
This very short introduction to recruitment campaign assessment should help human resource staff and HR managers to acknowledge that anything can be measured in the online world. However, it is “only” necessary to set all parameters correctly and process the right data. We can assist you within the OnlineHR approach, in which we train in the Increative. We will be happy to modernize recruitment processes in your company! Contact us at email@example.com