Making the Business Case for Increasing Your Recruiting Budgets

recruiting_budgetsAs the unemployment rate continues to go down, does the same hold true for recruiting budgets? After all, with the rebounding economy, more individuals are looking at new opportunities, making it easier to access top talent and potentially driving down recruitment budgets. In our experience, however, we find the opposite to be true: more organizations are actually increasing their recruiting budgets these days, capitalizing on new technologies and strategies that increase recruiting effectiveness and improve their ability to hire the best candidates possible.

The situation is much like building highways; the more roads that become available, the more places people can go, thereby increasing commerce and travel. Similarly, as the recruiting function continues to evolve, companies today have access to an almost unlimited number of channels to connect, engage and build relationships with candidates. And more employers recognize the value in leveraging these multiple avenues to reach right-fit candidates, deliver an effective candidate experience and ultimately hiring qualified talent more efficiently.

Fortunately, the days of posting job requisitions to generic job boards are over; the best recruiting organizations understand that to get to the right candidates, you must meet them wherever they are. And today’s recruiting technology providers offer an ever-growing range of solutions to make this possible. This is precisely the reason why most organizations have increased their recruiting budgets. In order to truly benefit from the advancements in recruiting software that enable organizations to pinpoint the best candidates faster, they must step up their investments in those solutions. 

Still, many organizations aren’t actually measuring their recruiting spend – and the results – systematically just yet. While companies can measure the cost to acquire a client or readily recall their average contract value, recruiting operations often lag behind in their use of metrics. With more CFOs expecting to be presented with meaningful data in order to make informed decisions regarding budget requests, HR must rush to identify, collect and understand their recruiting metrics, such as which sources bring in the best candidates. This can introduce new challenges. While HR practitioners are often adept at wearing numerous hats, not all are experts with data. As a result, some progressive organizations now include recruiting business analysts on their talent acquisition teams to collect and analyze such data and help make the case for continued investment in recruiting technology.

At the end of the day, recruiting data and budgets go hand in hand; with more and better data, HR can justify more budget for recruiting technology. The challenge for today’s recruiters is highlighting that relationship by showing how an increase in budget will further elevate the company’s hiring processes, helping to bring the best people on board faster and more cost effectively. Doing so is crucial to the viability of the talent acquisition program, and in turn, the health of the organization as a whole.

 

  5 Talent Metrics for Effective Recruiting

Filed Under:


Recruiting Metrics