Everyone loves free. But what’s that saying you hear when something sounds a little too good to be true? “There’s no such thing as a free lunch.” The reason for this lies in the simple phrase opportunity cost . Investopedia defines an opportunity cost as “the cost of an alternative that must be forgone in order to pursue a certain action”. Put another way, the benefits you could have received by taking an alternative action.
What does opportunity cost have to do with finding great applicants? Occasionally we see recruiters that are reluctant to commit any budget to advertising their open positions, and it generally leads to poor results. There are opportunity costs associated with relying purely on organic applicant traffic to fill your open position instead of engaging in active marketing and advertising efforts. Some of which can actually have a negative financial impact on your business.
Many job boards offer great opportunities to advertise your latest job opening for a reasonable fee. Without the extra boost in traffic, it can make all the difference between finding the perfect candidate and not filling the position.
Top 3 Opportunity Costs of Not Advertising your Job Listings
1. Longer time-to-hire
The volume of organic applicant traffic you will receive for an open position is usually significantly lower than applicant traffic driven by a paid online job posting (on a job board site such as Glassdoor , Craigslist or SimplyHired , for example). Fewer applicants means that it might take you longer to find the right applicant for your position because you don’t want to compromise quality for a speedy hire. The longer your position sits vacant, the more it costs your company in lost productivity. According to MIT ’s Sloan Management Review , it takes new hires between 8 and 26 weeks to get up to speed, depending on the position category (professional vs. executive). And that’s after the new hire has started working. Think about how much productivity is being lost every day that position sits empty.
2. Narrower reach = fewer qualified applicants
Relying on organic applicant traffic alone means that your job posting is reaching a much smaller talent pool than if you actively promote it to your social media network, via LinkedIn for example, or ensure premium placement on paid job boards through a paid advertisement, such as on Indeed . Many job boards will go out and scrape the internet for job postings, but even if they do manage to find yours and post it on their site, it will generally be buried so far down the page rankings that the best applicants will never find you.
3. Stretching remaining employees too thin
When you leave a department understaffed for an extended period of time, you end up overtaxing the remaining employees. The longer you leave them in that situation, the higher the risk of turnover.
Don’t let an over-reliance on organic applicant traffic end up costing you big money just because there isn’t an obvious price tag on the opportunity costs. There’s another saying to the effect of “not seeing the forest for the trees.” Spending a few hundred dollars on job board advertising for your posting and taking the time to promote it through your social media network will end up saving you much more than you spend by helping you fill the position quickly with the right person for the job.
For HiringThing users, we make it easy to promote your jobs to your social media network and buy advertising for your jobs right from within your HiringThing account. If you aren’t using an applicant tracking system, get started right away because it can easily save you another 30% of your time by automating your recruitment workflow. Give us a try!
HiringThing is easy to use, intuitive online recruiting software that makes it easy to post jobs online, manage applicants and hire great employees.