Given that nearly 400,000 jobs have been added in a month and the unemployment rate is at a 50-year low, it’s no wonder we are seeing a tight labor market. At the same time, job openings are close to an all-time high, and a near-record number of small businesses raised compensation in June. Employers continue struggling to hire – and retain – qualified workers, as demand for labor outstrips supply. As a result, organizations with large-scale hiring needs are looking to optimize their talent acquisition (TA) investments and the overall recruitment approach– ideally with a data-driven approach.
In this blog, we’ll look at why programmatic advertising may be the right approach for some TA leaders, and how to structure a business case.
A strong business case will help leaders understand the needs, benefits, costs, and solutions related to programmatic investments. Often, a lack of awareness or common misconceptions about programmatic job advertising can be a hindrance to adoption.
Myth #1: Additional budget is required
False. Programmatic is designed to be a cost-saving solution, helping companies reduce spend, make performance-driven decisions, and replace ineffective advertising methods. When building a business case for programmatic job advertising, companies should focus on how to shift and maximize their existing budget.
Myth #2: Technical skills are needed
False, again! Another misconception around programmatic is that it requires expertise in data and analytics or the ability to integrate the solution with your existing tech stack. It’s true that some programmatic platforms are truly standalone solutions that require concerted integration efforts. Others offer easy API-based integrations with most major applicant tracking systems (ATS) and human capital management (HCM) systems. Depending on your requirements, Joveo may not even require an API-based integration.
The takeaway is that you don’t need an army of data scientists or analysts to help you gain insights. A good programmatic partner can do the heavy lifting for you, analyzing broader market trends and supplementing your programmatic data to offer in-depth insights into how to maximize your advertising spend.
Making data-informed decisions
The easiest way to prove the ROI of your programmatic investment is to compare how the solution impacts key hiring metrics. For one, you can establish how your cost per hire (CPH) has changed by comparing your CPH before and after investing in programmatic.
Another formula for determining the ROI of your programmatic solution is to calculate total media spend/total hires resulting from the campaign. However, the biggest ROI impact of programmatic job advertising can be seen in the way organizations budget for hiring.
Many employers determine their budget for job advertising arbitrarily, deriving a number from the total recruiting budget or historic spending patterns. This approach has little connection to actual market dynamics.
Intelligent programmatic platforms can provide budget benchmarks for specific industries (e.g., trucking, logistics, and healthcare) based on data points such as job location and other macro- and micro-economic factors. Let the solution determine what your budget should look like according to industry or location-specific benchmarks. For instance, if you’re hiring for retail workers in sparsely populated areas, your CPH will naturally be higher than the CPH in more densely populated cities.
Programmatic improves job campaign effectiveness, streamlines advertising initiatives, and supports diversity sourcing goals. Organizations – at any stage in their journey – can achieve better job advertising outcomes, promote recruitment marketing and gain real-time adjustments not previously possible.
To learn more about how you can improve your hiring cost metrics, schedule a demo with us. And follow us on Twitter and LinkedIn, where we’re always working to help you get the most out of your recruitment advertising.