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E-recruiting 5

(August 18, 2004)
What is the cost of an e-Recruiting Program for an HR Department?

More than you could ever imagine.

eRecruiting is not really a replacement for existing methods, any more than Total Quality was a replacement for existing inspection methods in the 1980s. Yes, the ends are the same. But, eRecruiting is fundamentally different. Like using a hammer on a job that requires a screwdriver, results can be obtained when eRecruiting Systems are used as replacements for existing processes. In fact, that's how most companies have approached the issue to date.

In the early days of the industry, the pricing for a single job advertisement was set, based not on value but for competitive reasons, at about $100. In those early days, it was a tremendous bargain. The ratio of job hunters to recruiters on line was approximately 10,000 to one. Of course those pioneers received incredible value. The price had nothing to do with the value.

Today, a single job ad on a single service is a singular waste of that same $100. A simplistic conversion of existing Recruitment advertising from Print to online will result in observable cost savings. But, the results available from either traditional print advertising or online services have declined seriously over the past decade. The actual cost of obtaining the same results as last year have risen significantly. The core reason for the emergence of the Job Advertising Distribution Companies (JADs) is that they are able to provide the research, intelligence and reach needed to recapture the results available in years gone by.

Ads alone do not make a comprehensive eRecruiting play.

The real cost of implementing a modern recruiting methodology in a given company is precisely the cost of changing the process from reactive to proactive. Needs anticipation, the central feature of a well planned recruiting endeavor, involves outreach and data collection within the organization and in the business development process. Simply staffing the participation in these activities, let alone building a system that reconciles the various needs and the likelihood that they are realistic is an enormous challenge. The tracking systems, sourcing inventories and communications systems required to implement a proactive approach are to put it mildly, significant.

Additional costs include the loss of key HR personnel who insist that the new way is impossible. Training programs, processes and procedures have to be developed describing the new approach. As an analogy, the cost of introducing eRecruiting in a comprehensive way is the same as the cost of renovating an historic building. Often, it's twice the value of the existing structure. (Cynics will giggle and say that 2 times nothing is nothing.)

- John Sumser © TwoColorHat. All Rights Reserved.

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Materials written by John Sumser © TwoColorHat. All Rights Reserved.
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