Every company’s successful future depends on the people it hires. Then, there are a whole lot of tested & brand-new ways to keep those people happy, engaged, and loyal. But before you reach those stages, you must come up with smart and efficient ways to recruit new teammates. And while you’re at it, you’ll surely need to track a few key recruitment metrics. Sourcing channel effectiveness is one of them.
So, why do you need to keep an eye on SCE? Well, imagine that you have invested over $15.000 for job advertising, and the channel you chose doesn’t result in any hires. That sounds like a full-on agony, right? But, in reality, it’s much worse – because you could waste much more than cash!
And that’s why SCE belongs in the top three metrics for recruitment process analysis.
What is a sourcing channel?
The first thing is first – we should say a word or two regarding the channels recruiters use. So, sourcing channel meaning refers to all those ways, tools, actions, and platforms that help out a recruiter spot and contact their ideal candidate. It could come in the form of a job board, online community, social or professional network, and more. In-person events like meetups and conferences also count as valuable means of recruitment. And finally, internal and external referrals can also represent a super efficient way to find & hire the most qualified candidates.
Sourcing channel effectiveness (SCE): The ultimate metric to track
Like any other aspect of your business, recruitment should be examined regularly. That way, you’ll create more successful strategies and simplify the whole process. The ultimate results everyone hopes for include improved candidate experience, a bigger talent pool, more lasting bonds with candidates, lower costs of hiring, and overall more smooth recruiting tactics. Entering: SCE, the metric you simply have to track.
So, what is sourcing channel effectiveness? It is a proven way to measure how much each of the channels a recruiter uses to find and entice talents is, in fact, effective. For instance, you can start to check out how well job boards do and whether they should still have a place in your recruiting game plan. In other words, SCE evaluation will help you keep up with the most successful and the least successful channel. And so, you’ll identify in which area you should invest money.
The bottom line is – if you concentrate on steady growth based on reliable recruitment data, you will surely save time and money + gain better hires.
Basic ground: How is sourcing channel effectiveness measured?
Tracking SCE gives you an insight into how much each of your sourcing channels, like career pages, recruitment tools, social media, job boards, etc., are successful in adding qualified candidates to your pipeline. So, how do you measure recruitment effectiveness and, more specifically, sourcing channel efficiency?
There are two ways to track all the essential fields and recruiting progress:
- Quantitative Measurement – the aim is measured by a metric or statistic,
- Qualitative Measurement – the aim is measured by the hiring manager’s perception without any statistics or metrics to pull from.
Now, quantitative objectives are what we usually mean when we think of real goals.
In recruitment, that is often an X number of open positions over a specific period or an exact insight into a number of applicants per hire. Typically, it’s easier to achieve quantitative goals because the numbers won’t lie. But if you want to obtain qualitative goals, too, you need to be more creative.
Recruitment effectiveness: Qualitative goals
Qualitative goals in recruitment refer to a set of tech and soft skills needed for a specific role. When you are setting these aims, you need to learn how to create your candidate persona, define what makes successful performance within your team, and more. The focus is often on soft skills like being able to communicate clearly, adapting to changes quickly, fitting right in the crew, etc. Whether you decide to use qualitative or quantitative measures, there’s one thing that should be on your mind. The more precise and detailed you are about goals and how they will be measured, the better the recruitment process will be for your team. Ultimately, that’s what’s driving overall business prosperity.
Quantitative measurements: Sourcing channel effectiveness formula
If you need clear results for a fail-proof recruiting tactic, you will rely on math & stats. In this case, it’s about counting the number of candidates gained from a specific channel within a particular period. To be more exact, your formula refers to the time before and after implementing fresh recruitment strategies and using new channels. The rest is pretty clear: you’ll compare which channel is providing the most (qualified) candidates. So, it goes like this:
The total number of applications via one specific channel / the total number of hires via that same channel
That is how you will be able to tell how efficient one channel is. But there is more ground to cover. We can use the sourcing channel effectiveness formula and assess the results by following these three steps:
- Step #1: Gather results about the number of candidates at a specific time from each sourcing channel.
- Step #2: Divide the number of candidates by the channels that generated them.
- Step #3: Compare results between channels and define the one that brings the most candidates.
That is how you will gain a complete insight into your recruitment performance.
Sourcing channel effectiveness & ROI
SCE is one of the most relevant metrics for measuring the return on investment (ROI) of your hiring tools. As we previously learned, this metric will give you an insight into relevant seasonal trends.
Now, let’s now take a moment and look into ROI. We should cover its basic meaning & add a little bit more about the importance of measuring it. So, ROI represents the ratio between the amount of return of invested capital in relation to its cost. The understanding of ROI allows you to analyze the results of the specific strategy and decide the most cost-effective recruiting efforts you should consider. Quality of Hire is a metric that can help you out in this field by looking into the results candidates you recruit and hire are yielding.
But, if you genuinely want to measure your ROI, it’s also necessary to spot the most significant source of your qualified candidates.
Key steps for measuring ROI
There are three unavoidable steps to take when calculating your ROI and planning the next big move:
- Know the precise number of candidates gained from each source
- Make sure to get the number of qualified candidates gained from each source
- Find out where the qualified candidates firstly heard about your posted job opportunity
Now, here is an ROI formula that should be applied to measure sourcing channel effectiveness:
Sourcing channel effectiveness = Count the number of candidates from the channel during a given timeframe and compare which channel is producing the most (quality/quantity) candidates.
Tips on how to optimize sourcing channel effectiveness
There are a few simple steps that will undoubtedly help you optimize your channel effectiveness. Follow these three main guidelines for the best outcomes:
- Organize your existing channels. You need to have an insight into every channel you are currently using (agencies, job boards, different platforms… ). Here’s an extra tip: if you visualize them, you will have a better review of how each of them contributes. Therefore, you could do a much better job optimizing them.
- Digitize all. Since technology is unquestionably changing the staffing industry, you should make the most of it. For instance, you should include all channels into an advanced applicant tracking system. An ATS will provide you the automated process for ordinary manual tasks and also give you a better preview of the source of candidates.
- Know & meet candidate expectations. Today’s generations are digital-savvy. It’s not just about the tech talents. Most job seekers will perform their searches on many different platforms, looking for information about the company they are interested in. Are you the employer of choice? Here’s another bonus tip on thriving here: start with finding your target group of candidates. Then, understand their logic and behavior, know about which platforms they mostly use (and when), and then work your way into their communities!
Sounds good? Start to boost your game ASAP by following these elementary steps.
Referrals as an ultimate source of qualified candidates
Hiring through referrals saves money, time, and a whole lot of nerves. Moreover, it is proven as the most efficient method in the long run. In fact, those who join a company through a peer’s recommendation tend to stick around for an average of four years. Also, according to studies, their performance is usually awesome – and they can fit right into the team in no time. So, choosing to rely on a referral program is usually the best possible way to secure improved processes and substantially better outcomes!
Your best option: Recruitment affiliate software
If you are planning to use an online recruiting platform as the main source of hire, choose the most efficient one! A software that’s powered entirely by referrals is possibly the most outstanding alternative for those who are dedicated to cracking a code on how to hire developers and other techies.
By using recruitment affiliate software, you will be entirely in control when it comes to the cost per hire. In fact, you will be the one who’s calling the shots and deciding how much money you’ll be spending. Then, there’s an even more brilliant perk here. Your talent pool will be so much bigger! Cause, here’s the truth: many job seekers don’t have LinkedIn profiles. And a massive part of those who have it tends to ignore recruiter’s messages because they will only go for a reliable job opportunity – offered by someone they know well. Hence – referrals! Only in this case, your recommendations won’t be limited solely to your employees. A successful referral can come from any place, and that’s another amazing benefit you’ll be getting.
Pay close attention to the sourcing channel effectiveness – and follow this simple guide!
Finding the best and most efficient sourcing channels in recruitment is imperative. And you can gain the most accurate insights by tracking the key metrics like SCE. Use the simple formula to assess your tactics, and then refine them according to your new knowledge. Also, be sure to know your target crowd. Explore the media and platforms they use, engage with them, and post regularly – whether it’s Facebook groups, Slack, Reddit – or wherever your ideal match is.
And now, the best part: make sure to explore referrals as your ultimate source of top candidates!
