If you regularly post job ads, you’ve probably noticed their new, more expensive price tag. Job ads are quickly becoming costly, and, considering how few quality candidates they deliver, they’re probably not worth the price.
What’s driving up costs? To start, prices are going up everywhere, and workers are in high demand at a time when supply is low. Job seekers are also reevaluating their careers and being more selective about where they apply.
Let’s take a look at how much average job ad costs have gone up, and what you can do to secure high-quality talent without breaking the bank.
Costs of job ads increased dramatically in 2021
According to the 2022 Recruitment Marketing Benchmark Report from Appcast, the median cost per application jumped from $19.96 in Q4 2020 to $28.47 in Q4 2021, an increase of 43%. Cost per click went up 54% in the same period, from $0.71 to $1.10.
And after declining for a decade, the cost of online ads in general is soaring. Online ad prices were up 26% in June 2021 compared to a year prior. Businesses have been paying 14% more for these ads since the start of the pandemic.
Unfortunately, these significant cost increases didn’t boost apply rates much — median apply rates only inched up from 3.93% in 2020 to 4.05% in 2021.
Referrals reach more high-quality candidates for less
If your job ads aren’t working and are going beyond your budget, there’s some good news — referrals deliver better results, and they’re nearly free.
With a referral program in place, you’re not only cutting out the cost of job ads — you’re reducing your overall cost to hire. You get to direct this savings toward incentives that turn your contacts into loyal brand ambassadors.
Referred candidates are also higher quality candidates.
It should come as no surprise that finding quality candidates was the top challenge for staffing agencies in 2021, according to the 2021 Staffing Hub State of Staffing Industry Growth report. But did you know that referrals were identified as the most effective source of new candidates by the fastest-growing agencies?
Here’s why.
Rather than blindly sending out job ads and hoping the right candidates will see them, referrals rely on people in your extensive network to bring quality talent to you. Referred candidates are not only more likely to apply for the job that a trusted friend recommended for them, they’re also more likely to be a good fit for the role. This means they’ll stick around longer, too — compared to non-referral hires, referral hires stay with their employer 70% longer.
Referrals also allow you to cast a wider net than job boards, even reaching potential applicants who aren’t currently looking for a new job. That’s a big deal when there aren’t enough active job seekers out there to fill all the open positions.
If job ads are wearing you down, referrals might be the game-changer you’ve been looking for. We’d love to hear how referrals have boosted your hiring process — share your experience by tweeting @StaffReferrals or leave us a comment on LinkedIn.