Is traditional, duration- or CPC/CPA-based pricing better for employers advertising their jobs?

As the Founder and Chief Visionary Officer of College Recruiter job search site, I regularly hear from talent acquisition leaders of all different sizes and types of employers located all over the world about whether they prefer to buy job posting ads on a traditional, duration-basis or on a performance-based such as cost-per-click (CPC) or cost-per-application (CPA).

Not to steal my own thunder but the answer to which pricing model is best really boils down to, “It depends.” Any job board of recruitment marketplace, any employer, any advertising agency, or any random person walking down the street who tells you otherwise is naive or lying. So, let’s look at each and examine their pros and cons.

1. Traditional, Duration-Based Job Posting:
   • Fixed Price: Employers and other advertisers pay a predetermined fee such as $200 to post a job advertisement for a fixed period (e.g., 30 days). This is the most common model used by job boards globally, although rapidly declining in popularity, particularly in the United States, Canada, and the United Kingdom.
   • Predictability: Employers know in advance how much they will spend. It makes budgeting simpler.
   • No Guarantee: This model doesn’t ensure a certain number of views, clicks, or applications. It’s possible to pay the fee and get little to no response, but you’re paying for the opportunity and exposure.
   • Broad Exposure: The job posting is visible to everyone who visits the job board during the period, which might lead to more diverse applicants.
   • Simple Management: Once the job ad is posted, no further adjustments are typically needed in terms of budget or bid management.
2. Performance-Based Job Posting:
   • Pay for Results: Advertisers are charged based on specific actions, like when a job seeker clicks on the ad to go to the employer’s page to, hopefully, apply (cost-per-click / CPC) or submits an application (cost-per-application / CPA).
   • Flexibility: Employers can adjust their bids or budget based on the performance of the ad. If a certain role isn’t getting enough applications, they can increase their bid to make the ad more competitive. The more the employer pays per click or application, the higher in the job search results the ad will appear, which increases the number of candidates who view the ad and, therefore, respond.
   • Potentially Cost-Effective: If the ad is well-optimized, employers might get a better ROI compared to the fixed-price model, especially if the performance metric is closer to the hiring end goal (like paying per application rather than per click).
   • Variable Costs: It’s harder to predict how much the total cost will be, as it depends on user actions.
   • Targeted Exposure: Often these platforms allow for more advanced targeting, so the job may be shown to more relevant or qualified job seekers.

Which One to Choose? The best model depends on the hiring needs, budget, and the specific job market:

• If an employer wants predictability and simplicity, a duration-based model might be more suitable.
• If they want to optimize their spend and potentially get more for their money, a performance-based model might be better.
• If they want to hire two, 10, or even 100 people into the same role, they’ll need two, 10, or even 100 times the number of candidates viewing the posting to get two, 10, or even 100 times the applications. In these cases, a performance-based model will be better.

Many job search sites, including College Recruiter, sell job posting ads on both traditional, duration- and performance-based pricing models. These sites typically refer to this as operating on a hybrid pricing model. It is also important to note that some employers post some jobs with some job boards on a traditional, duration-basis while, at the same time, posting other jobs to other job boards on a performance-basis. This strategy can make a lot of sense, such as for an employer who is hiring a new sales manager while also trying to hire 10 customer service representatives. At the end of the day, employers should choose the pricing model that best fits their specific roles and, therefore, hiring scenarios.