Social Recruiting is the future. In fact, for many organizations, social recruiting is becoming the norm – moving away from recruitment agencies, HR firms and Head hunting firms to search, interview and get on-board the best candidates for their specialist requirements.
But why is Social Recruiting better than head hunters scouting for talent?
Rather recently, I came across an organization which needed some fresh blood in their teams in one of their remote locations. Instead of looking for recruitment agencies, and outsourced HR companies which is still the norm of hiring in India, the organization decided leveraging Social Media for their internal recruitment needs. Here’s the Case Study in a nutshell:
1. Social Networking site targeted – LinkedIn
2. 5-Job Pack purchased: USD 150.00 for 5 job postings; each job with 30-day validity.
3. Jobs posted: 5 (Social Media Community Manager, Perl Developer, Software Developer, Customer Support Engineer, Test Engineer).
4. Number of applications received:
- Social Media Community Manager = 275
- Perl Developer = 33
- Software Developer = 241
- Customer Support Engineer = 64
- Test Engineer = 101
Total applications received = 714
5. Thus, 714 applications received in 30 days for 5 positions.
Investment = USD 150.00
Cost per job posting = USD 30.00
Cost per job application received = 0.21 cents
Brokerage fees = USD 0.00
6. Total number of candidates hired after multiple rounds of interview = 7
7. Effective social media ROI = (return – investment) / investment %, wherein, return in this case would be the difference between forecasted brokerage fees and actual brokerage fees for recruitment agencies; had the organization opted for the traditional model of hiring. In this case, since 7 professionals were hired, the average brokerage fee for each could be assumed to be USD 600.00 (an average standard in India); thus, for 7 employees = USD 600.00 x 7 = USD 4,200.00
=> Effective Social Media Return on Investment = (4,200 – 150)/150 = 27 X 100 = 2,700%*
Please note: This method of calculating return of social media is very identical to ‘sales gap analysis’ and ‘support call gap analysis’ methodologies.
In a nutshell, with more and more organizations worldwide opting for social recruiting, i.e. using platforms like LinkedIn, Facebook, Twitter and others for their internal recruitment needs; its getting an uphill task for dedicated outsourced HR companies, recruitment agencies and moreover, B2B2C portals like Monster.com to sustain themselves in the current economy.
Thus, the question is – Is YOUR organization using the inherent power of Social Media to connect with prospective employees, and use platforms like LinkedIn/Facebook/Twitter/StumbleUpon effectively to find those gems?
*Thanks to Chris Kieff for pointing out I missed a multiplication by 100. Thanks, Chris