#4 Plan a Realistic Budget to Achieve Your Goals
Seasonal hiring is starting to ramp up and you’ve been given a budget, but you have no idea where your recruitment advertising dollars should be allocated and how much you’ll need to ensure your hiring goals are met. Where do you start?
Let’s say you need to hire 100 retail workers. You can assume 50% of those hires will come from the job board channel. So, how do you figure out how much those 50 retail hires from job boards cost?
First, work backwards from your hiring goals, and use the concept of application to hire ratio (one of the many useful metrics in your recruiting funnel!). In other words, how many applications does it take for you to make one hire?
For example, if it takes 10 applications to make one hire (and you need 50 hires), then you know that you need 500 applications to generate those 50 hires.
Next, figure out your cost per application (CPA). Don’t know where to find that? Appcast can provide CPA data based on geography and industry/job function to help figure out how much you should budget here.
In this example, you can use a weighted average of a $26 CPA for retail roles. So, now you know, you need 500 applications at $26 per application to make 50 hires.
500 applications x $26 CPA = $13,000
And there you have it. This is a relatively simple exercise, but of course not every job is the same! Depending on your needs, priorities, and the types of roles you’re recruiting for, you may need to build additional layers to this formula to create a realistic picture of what budget will allow you to hit your hiring goals this season.
