How to Keep Job Boards from Draining Your Bank Account

by | May 8, 2023

The execution phase of recruiting starts with lead generation.

In the recruiting industry, this is called sourcing.

In essence, it’s getting someone to “raise their hand” and say: I’m interested in talking about working in your organization.

Employment researchers track this via the “cost per apply” (CPA) metric.

If you’re sourcing online, here are some metrics you should know:

-it takes 22 clicks (people seeing/reading your posting) to get one person to apply

-the average CPA across all industries is $25.70

-the average CPA for real estate positions ranges from $8.80 to $34.22

-minor issues affecting CPA are factors such as geography, day/time of apply, device the prospect is using when they apply, etc.

-major issues affecting CPA are type of position (250% effect), how the posting is written (200% effect), pay model transparency/honesty (54% effect), and brand/reputation of the company (varies).

Here are some best practices to consider when sourcing recruiting prospects:

Track your CPA.  This metric quickly lets you know efficiently you’re operating compared to other like companies in the market.

Optimize your Postings.  If your CPA is too high, tweak the major and minor factors listed above to lower your CPA.  Change one factor at a time, remeasure, and repeat.

Develop a Quality Metric.  There are significant variances in the quality of applicants—it’s helpful to develop a standard for your organization and then track a “cost per quality applicant” metric.

Set Limits on Spending.  Setting up small campaigns with limited budgets is the best way to eliminate spending overruns.  Combine this with measurement and frequent testing to drive down CPA costs.

Without a strategy and focused attention, you’ll spend too much and not get the results you hoped to achieve.

The Simple Psychology of Real Estate Recruiting [eBook]

Unlock the secrets of effective real estate recruiting and learn how you can build trust, foster rapport, and understand the psychology behind candidate decisions. Discover techniques for converting acquaintances to hires and retaining agents by addressing their needs and aspirations.