Using your Recruitment Budget to Maximise ROI

Using your Recruitment Budget to Maximise ROI

Finding candidates for your business is always going to be a challenge, particularly if you’re hiring multiple people year-round. But it’s one you need to overcome quickly if you want to get ahead of the competition and have as successful a hiring process as possible – after all, an organisation is only as good as its employees.  

Something else you’ll need to bear in mind, of course, is your recruitment budget. With an unlimited budget, finding the best workers is easy, but very few – if any – businesses have an unlimited budget for anything, let alone recruitment. Which is why you need to be careful and make sure you can maximise ROI with whatever budget it is you might have.  

In other words, you want the best candidates you can afford. With that in mind, let’s explore this idea further and consider how to maximize ROI with an effective recruitment budget 

Table of Contents

How to Make a Budget 

Before creating a recruiting budget wisely, you need to know how to make one in the first place and ensure you get it right. A hiring budget is more than just a list of numbers on a spreadsheet; it’s crucial to ensuring your business can run smoothly, buy what it needs (including personnel), and stand out in the potentially very large crowd.  

When it comes to a recruiting budget, you’ll need to lay out all the recruitment costs (which might include advertising, the time you’ll need to take to interview potential candidates, and even the cost of a recruitment agency if you’re using one) and then allocate whatever resources you need to make it work for you, the candidates, and your business. 

Creating an effective recruitment budget means you need to understand various elements of your business, including the difference between fixed and variable costs. Fixed costs are going to be things like salaries, the cost of the agency, and perhaps subscription fees for applicant tracking systems – you can’t change these things, hence the name. Variable costs are things like background checks or going to events to recruit people; they’ll be different depending on how many applicants you see and screen or where you end up going.  

It’s wise to have more fixed costs than variable ones as it makes calculating your budget a lot simpler and more accurate, but understanding the difference and inputting all the data you have into your budget spreadsheet is vital if you want to get an overall picture of what you might be spending. It’s only then that you can be sure you’re getting the best ROI you can.

 

Use Technology for Good Results and ROI  

One excellent way to maximise ROI with an effective recruiting budget is to invest in technology – when it makes sense to, of course. Buying software that you don’t really need, for example, isn’t going to be a good use of your budget when you could use it for other things, and the tech you buy will just go to waste.  

Hiring automation tools like applicant tracking systems are often a good investment because they make the entire recruitment process much smoother and ensure you’re always on top of whatever’s happening, reducing costly delays and keeping all potential candidates happy and – vitally – informed about their progress. The last thing you want is for a good applicant to find a job elsewhere because they haven’t heard from you because you lost their details or just got delayed somehow.  

With the right technology in place, you won’t have this issue. Candidates will be kept informed of the outcome of their application, and your ROI will be maximised because you’ll be in a much better position to hire the best candidates. 

Know your Costs and Manage your Budget 

Another way to use your recruiting budget wisely is to ensure you know your costs, specifically your costs per hire. To do this, you’ll need to think about both external and internal costs, and these don’t have to be specific outlays – they can be more abstract, such as the time your hiring managers might spend with each candidate, for example, which, although not a direct cost, is still money you have to find.  

Even when you know these costs and you’ve worked them out to the last penny, you’ll then need to manage your recruitment budget properly to get the most out of it. Overspending is easy, even with a budget, but a few pounds here and a few more there can quickly add up – remember, your budget isn’t a target; it’s a limit, which means if you can spend less and still get the best quality candidates, that’s something you should be aiming for.  

One way to do that is to enhance your brand.  

 

Branding and Recruitment  

Enhancing your brand isn’t just something that’s going to help maximise your ROI when it comes to recruitment costs – it can also strengthen your position in the market, make you more memorable, build trust with your customers, and much more. However, in terms of recruitment, a positive brand is vital.

Building a positive brand means you’ll have less work to do in convincing good candidates that your business is a worthwhile one to apply to – they’ll already have a good opinion of you and what you do. That means you’ll have to spend less on recruitment because the best candidates will already be looking for open positions with your company. Your budget can, therefore, go a lot further than it would if you had a less positive (or even entirely negative) brand image.  

 

Attend Recruitment Events  

You might not have considered attending recruitment events before now – perhaps you’re too busy, or you feel you’ve got enough candidates coming through from your job ads – but they could be another excellent way to really use your recruitment budget effectively and maximise your ROI as a result.  

These types of events are the ideal platform for businesses to showcase themselves, their culture, and any job openings they might have, and on top of that, you’ll be meeting potential candidates face to face rather than through a CV. That can make a big difference and help you make faster decisions (something that’s bound to save money).  

It’s well worth taking a look at any events you could attend, even if it’s just to test the waters. You might find that this becomes your best method for attracting candidates because it’s not just you interviewing potential employees; they’ll be doing the same to you. If you can make a good impression, you’ll have a lot more choices, and your budget will bring you excellent returns.  

Use Recruitment Analytics  

If you want to maximise the ROI on your recruiting budget, you’ll need to find ways to speed up the process. And recruitment analytics are a great way to do that.  

When you analyse the data you’ve collected on how successful your job adverts were, how many successful hires you’ve made, and your recruitment costs (for example), you can start to spot patterns and trends that will ensure you’re better equipped to make good decisions regarding recruitment in the future.  

With this information, you can adjust your ideas and recruitment strategies to ensure you maximise your ROI and make your budget go as far as possible. For example, your data might show that you don’t get much response from job ads placed on Facebook, but you get a good amount through LinkedIn. In that case, you can stop posting on Facebook and put more of your budget into an excellent LinkedIn campaign that will bring you better candidates.  

Analytics can ensure that you not only make the right decisions when it comes to finding the best people to fill your vacant roles, but it’s an excellent way to maximise the ROI on your recruitment budget, especially if you use the information you gather regularly – in other words, don’t just wait until the end of the campaign before checking to see what the number of hires is like. By looking at the figures and data constantly throughout the campaign, you’ll get a much better overall picture of what’s happening, and you’ll be able to make adjustments instantly, helping your budget and getting a better return.  

 

Final Thoughts 

No matter what you’re doing and what kind of business you run, maximising your ROI should always be a priority. When it comes to recruitment, you’ll be spending a large amount of money (in most cases) hiring someone – not just the immediate costs, but ongoing costs such as salary and benefits need to be considered. Maximising your ROI by hiring the right people who will be productive and help to move your business forward is vital, and the ideas above should help you make a plan that gives you the results you’re looking for.  

For more tips on improving your hiring process, download our Talent Acquisition Toolkit today.  

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