Hiring is a never-ending journey where some may get tired and lost on the road. When you’re taking a "milk tea" break, how about a 5-minute read which may make things easier?
1. Source quality
There are infinite ways for job application: social media, company careers page, job posting sites like Wantedly… In order to differentiate which channel works best for your company, total applicants vs. hires ratio can be a go-to, for instance:
Company careers page: 50 applicants per month
Facebook: 200 applicants per month
Wantedly: 100 applicants per month
Simply looking at the number of applicants, one can easily conclude social media is the most “effective” source. However, recruitment is more about quality than quantity, which is shown in the chart below:
Now it’s time for you to choose which channel deserves more effort from you based on the applicant/hire ratio. Although social media gives you more applicants, it is job posting sites bringing you the most hires and better ratio.
To further find out which specific source is the best bet, try comparing various social media channels and job posting sites. Doing so helps you reduce not only the cost of hiring, but also saves you the time and effort to screen through piles of resumes.
2. Conversion rate
As we all know, hiring has a number of core stages—application, screening, interviewing, offer and eventually, hire.
While there can be a few extra steps here and there such as a phone interview prior to a face-to-face interview, the conversion rate of each stage should give you hints of existing issues.
For example, if you have received 100 applications and decided to call 40 of them for screening, the application-to-screening rate would be 40%; and if 10 of them were invited to an interview, the screening-to-interview rate would be 25%.
As shown in the above chart, one might be too selective because of the low screening-to-interview rate while a low hire rate might suggest the lack of competitiveness of your company’s salary, compensation package, extra perks…
3. Cost per hire
The main cost of recruitment is time and money. While time is a vaguer metrics, how about spending your budget wisely?
As mentioned in the first tip, identifying the most effective source can already help to reduce the cost. However, the long-term and comprehensive solution is employer branding.
Take a look at companies like Facebook and Google, they’re receiving millions of applications per year not just because of their financial status and fame, but their employer brand as well.
Google has always been linked to freedom, flexibility, fun… Their employer brand is too attractive that they receive 2 million applications per year!
Yet, there aren’t many companies considering their employer brand a valuable asset and this is something to be changed.
Investing in your employer brand doesn’t only benefit a company’s long-term development; it can be instantly effective if it’s done in the right way, which will be discussed in the next article.
Can’t wait to understand more? Let’s have a chat!
Wantedly is a Tokyo-based startup founded in 2010, with the mission to create a world where work drives passion. We do this by connecting like-minded companies and talents based on passion and interest, rather than pay and benefits. We currently have over 30,000 companies onboard and 1.2-mil monthly active users in Japan, and recently launched in Singapore and now we are in Hong Kong!