I'm a big fan of performance-based recruitment advertising, which essentially means that the advertiser only pays for ads which deliver the results promised by the publisher. For pay per click job posting campaigns, that generally means you pay the publisher each time someone sees your ad on the publisher's site and clicks on the ad to go to your site. For pay per lead job posting campaigns, that generally means you pay the publisher each time someone sees your ad on the publisher's site, clicks on the ad to go to your site, and then registers at your site. Employers buying advertising on a pay per lead basis will often refer to these campaigns as pay per resume or pay per applicant because they are paying for job seekers to submit their resumes or otherwise register at the employer's web site.
But what do these campaigns really cost? For those who have never purchased advertising on a pay per click or pay per lead basis, the jargon and math can be a little daunting. First, let's look at a pay per click campaign. If you pay Google, Yahoo, or a job board like CollegeRecruiter.com $0.50 per click (the amounts vary considerably depending on the publisher and your target audience) then for each click you pay $0.50. Easy enough, right? Not so fast. What employers really care about is their cost per hire. In other words, what is their total cost to hire one person?
Let's use numbers gathered by CareerXroads from large employers to help guide us. They reported that the average employer saw about 68,000 visitors reached their staffing pages, about 18,000 of the visitors completed an application for a specific job, about 6,000 of the completed applications were qualified applicants for the jobs they applied for, about 2,000 of the 6,000 became finalists, and the 2,000 finalists turned into 500 hires. So for every hire, the employers had four finalists, 12 qualified applications, 36 applications, and 136 visitors.
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