Hear Matt Singer, Jobvite's VP of Marketing, and Chris Forman, Appcast's CEO & Founder, discuss mastering the top recruiting metrics, and learn:
Rachael: Hi everyone and welcome to today's webinar my name is Rachael Vasquez and I'm on the marketing team here at Jobvite. Before we get started with our webinar for Recruitment Benchmarks to Measure ROI I just want to thank everyone for joining us today especially our current Jobvite Appcasts customers hello.
First you'll notice that all lines have been muted to avoid background noise however we would still love to have your questions so if you want to use the chat box at the bottom of the readytalk panel we'll be monitoring it throughout the presentation and saving your questions until the end.
Here's our agenda for today we're going to tell you why tracking your data matters more than ever before we're also going to dive into the 4 Recruitment Benchmarks to Measure ROI click to apply rate, cost per quality applicant, source of applicants and hires and time to hire with that I'd like to introduce Chris Foreman.
Chris: Hi Rachael thanks. Hi everybody my name is Chris Foreman I'm the founder and CEO Appcast I'm looking at the the folks that are coming into the webinar right now and smiling there are a number of very familiar names so it's nice to be talking to some friends and colleagues from the recruiting space. A little bit of background I've been building technology recruiting technology specifically for the last 20 years I ran a company called AIRS I was the Chief Technology Development Officer at Right Thing and then more recently started a Startwire and Appcast.
Startwire as a company it helps job seekers get updates in their job applications using a nifty free web applications got about 10 million users and Appcast I'll tell you about business second this is Matt nice seemingly make this date a couple times a year we talked quite a bit about things that we think are important to talent acquisition professionals hopefully it can be valuable for you and as number you do know I mix the incredibly symbiotic things of building recruiting technology and shoveling cow manure I live on a small farm in in New Hampshire that has cows pig sheep and chickens as well as for kids and dogs and thankful my wife still puts up with me.
A little bit about Appcast we're a 50-person actually more than that now software company based right near Dartmouth College that makes technology that in essence is the tagline says make job ads work we've got three products about 650 customers most popular product in the employer space is a platform called Exchange that allows employers especially those using Jobvite in essence purchases recruitment media across the entire web across all makes job boards as well as search social and display sites on a paper applicant basis rather than paying per click or preposing we've got the enterprise software suite called Clickcast that is predominantly used by recruitment advertising agencies and large job boards to optimize their cost per click job ad buying so if you in essence spend more than half a million dollars a month buying cost per click advertising from places like Indeed or Glassdoor or Ziprecruiter or Jobcareers close to sixty five percent of that marketplace subscribes to Click Cast they then manage that spend.
And lastly brand new product that we just launched is Appcast Brand a brand advertising platform for recruiters that allows you to target really powerful display brand advertising to people that have completed applications on your website so that you can tell them about how great places to work you can retarget people that have started an application let's say on Jobvite but if not actually completed it so this is very similar to what they do in consumer advertising in terms of shopping cart abandonment work and then also there's something a lot extension where you can go really reach out to passive candidates on the web whether they be truck drivers or cooks or software developers and talk to them about how great place you are to work that's us and that's me so Matt hi.
Matt: Thanks Chris yeah and it's always a pleasure working with Chris a really fun guy interesting background love the stuff that Appcast is doing and couples really well with the Jobvite in our solutions I'll just talk briefly about my background and sort of how it relates to recruiting so I've spent the last 15 years in sales and marketing and the last 10 of those working for various software companies HumanConcepts which makes york Plus product part of Saba and then Success Factors for a number of years and was particularly interested in the recruiting piece of that and so joined Jobvite about four years ago and you know I think that the big parallels that I see between marketing folks and recruiting folks is you know sort of this evolution of our functions and the parallels are really interesting and I think data is what has driven that so I'm sure most of you are kind of aware of the CHRO position being relatively new sort of last ten to fifteen years that individual earning a feed on the executive team and something similar happened a few years prior with the chief marketing officers and so I think that you know what's driven that change has been data and accountability.
I think is really driven by data and so having systems like the Appcasts and Jobvite and so many others out there that empower us in the HR and marketing space with data to justify the investments that we're making is has been a big part of our evolution and so that's kind of my perspective on you know the recruiting space and and how marketing and recruiting sort of have evolved in parallel and as far as Jobvite as an organization you can see sort of the the way we view it is top of funnel bottom of funnel or you could think about it in terms of pre apply and post apply and so the stuff that they're doing a Appcast is really optimizing getting folks into the top of that funnel and then our software is really focused on you know once they're in that funnel driving them effectively through the process and so we have a suite of applications that address these various stages of the funnel I won't go through them all individually but you know things like the career site both mobile and desktop we have a product called Jobvite Engage to run campaigns and build talent pools for those passive job seekers the ability to do social referrals and job distribution through social networks and then an ATS video screening and an onboarding product and we've really seen that evolution as well with the shift of onboarding moving from the HR function to the recruiting function.
So with that I've mentioned you know kind of the importance of data and how I really think data is what drives the you know the empowerment of teens and so we'll start off with a staff to kind of stay true to form and so you can see here from our recruiter nation report from the end of last year the recruiters that we polled and we do this every year a couple thousand recruiters and then in the in the spring we do a couple thousand job seekers we just launched the job seeker survey this week but from the recruiter nation report you can see that recruiters do not see the market getting any easier so basically all the recruiters with 5% margin of error feel that you know hiring is going to continue to get more competitive and so you know a lot of the stuff that we're going to talk about are ways that we think that you can differentiate yourselves as well as I'm optimize your spend and so some of the reasons that we're cited and this is from SHRMs talent landscape survey but you know I think in terms of why recruiters feel that way so you can see here that over half of the recruiters polled we're seeing a lower number of applicants increased competition and then specifically in that kind of knowledge worker or skilled worker side of the business there's focus on a lack of you know skilled candidates that have that necessary set of technical skills and then the third excuse me the fourth is the piece around the competition in local markets and so recruiters are increasingly looking to other markets the idea of contract work and remote work to help address some of the talent challenges that they're facing.
Chris: So thanks Matt and so you know one of the things that you know the stats that Matt just you know kind of laid out you know kind of paint a picture of is that there's a feeling a strong feeling within the talent acquisition community in the United States that it's getting harder to recruit as you know the unemployment rate goes down you know we're at historic lows you know we're back into that you know too often use term of a war for talent now it feels that way and interestingly if you look at the data that exists at video kind of a both a macro and a micro level so the economic at the broad US economic level as well as in the you know the micro level particular industries are your companies there's data that supports that assessment view and then there's data that cuts across it and I think that you know there's we decided to throw with this stat is kind of a you know a counterpoint is that a lot of recruiters are feeling that it's tighter but interestingly when when push comes to shove and you talk to folks in talent acquisition outside of the broad benchmarks that exist In the economy such as you know the unemployment rate oftentimes they're hard to it's hard to put a finger you know on data that is showing you know it's becoming harder it's becoming more difficult there's there's fewer folks you know kind of getting through the end of the funnel.
And you know the reason why your recruiters and recruiting leaders you know are necessarily has data driven or utilized data as much as some of their colleagues and other kind of frontline positions you know let's say in marketing or sales is not because you know the people aren't data-driven and the processes isn't you know is inherently not for me it's data-driven I actually think that it has to do with the fact that recruiters have an extraordinarily difficult and multi-threaded job and I'm not and I'm not playing to the audience here guys I'm being really you know honest you have 75 bosses I mean you've got the vice president of recruiting who you know you work where this you know the chief human resource officer then you've got every single hiring manager who's req you're supporting and then you've got the candidates as well and we rarely think about the candidates as being a you know the boss of me in this process as it were but each one of those constituencies you know HR leadership hiring managers as job seekers have our major stakeholders in this process and you have to keep them all happy on top of the fact that your business process that you're working through is completely complex and multi-threaded.
And so unlike somebody like if you're in sales your job is to go sell a product and it's pretty linear and if there's a lot of specialization that occurs if you are in operations or you're in manufacturing things tend to be fairly linear recruiters are you know forced into a situation where they have to be masters of all the trades and that's really really hard to do and that creates a lot of complexity and I believe is one of the reasons why sometimes it's hard to bring data into the conversation when you're looking in talent acquisition and so what you know Matt and I are endeavoring to do is to provide a construct and a simple construct and some benchmark data to start to break down some of the key things that you is recruiting leaders and recruiting professional practitioners want to start to measure and manage and and track and I think that the construct that Matt provided in terms of you know top of the funnel and bottom of the funnel is really really an important and you know the stuff that I'm going to be talking about specifically is going to be at the top of the funnel this is where you know our partnership with Jobvite and the work that we've done since literally we founded the business you know Jobvite was I think our first one of if not our first you know kind of applicant tracking partners and we've developed an incredibly deep relationship has allowed us to really kind of bring to bear on some neat data.
So where I want to start is actually on a bit of a geeky tactical you know kind of piece of benchmark data and that's what I call a click to apply rate so the click to apply rate measures the percentage of job seekers that click from a job ad on a job site or a job aggregator to the beginning of your application process on Jobvite and what percentage or any applicant tracking system and what percentage of those people actually complete the application so Appcast because of you know the our install base and our customer base and the fact that our bidding software is used by you know of the vast majority of recruitment advertising agencies and job boards the United States has a massive massive store of data literally every single day we are tracking millions and million millions of job clicks and apply conversion marketers we call events and so we've been able to boil the ocean and kind of benchmark what the standards happened to be in this area.
The reason why this is really important is that you spend money every single day whether it is direct or indirect cash to build employer brand to do marketing to buy job ads to get people to come to your website review jobs that you have open and apply for those jobs if more of those people actually that have intent meaning that they came to your career site they navigated to a job actually complete the application in the long run you will spend less money if you have more of those people you'll complete the funnel you know in the e-commerce world you know if somebody comes to your site and navigates and says I want to buy a toaster you will sell a lot more toasters if you get you know more people to click the Buy button to actually get all the way through and give you a credit card so what we've got here is we've got some really interesting benchmark data and it's looking at click to apply rate by device.
So on average across all the applicant tracking systems you know that we track and this also includes you know home hosted pages on average seven and a half percent of the people that click from an external site where a job description is being posted and get your applicant tracking system actually completely apply the number goes up when you just look at people that are on a desktop and the number goes down when you actually look at folks that are on a mobile device and this mobile device percentage is actually not has gone up sharply in the last year because a lot of folks in the you know account acquisition world have gotten religion understanding the fact that close to 50% of their job seeker traffic now is on a mobile device and if they can't accept applications via mobile device they're missing out on a ton of great applicants so here's what the standards are you know if you are a if you're interested in understanding what your click to apply rate is as a Jobvite customer we can actually help you do that doesn't cost anything we can you know drop an Appcast conversion tag on your site an you would be able to measure these instantly and see where you benchmark the other thing that's interesting is that we started to look we took all the jobs that our platform manages and understands on a click to apply rate.
We started to break it down by function and we wanted to see which function had the highest click to apply rate and what you see here actually makes some sense this is this was fascinating on the left hand side where you see the highest click to apply rate that means more people are you know of the people that clicked from an online job ad to get your applicant tracking system more people are actually completing the apply process the the functions are restaurant customer service admin clerical what are those jobs have in common well they tend to be jobs that job seekers who are shopping for a position based on shift availability location and shift differential you know hourly rate that's where they you know end up playing and the logic here is that let's say you are looking for a new job along your bus route there's a Target on one side of the road and there's a Walmart on the other side you're working at Walmart and all of a sudden Target you know your friends know works or Target says they're paying 50 cents an hour or a dollar an hour more and they've got a lot more shifts that aren't at night and on the weekends you will actually you know because that's that's kind of the only employment on your bus route you'll take the time to go through the most atrocious online application process out there because you really want to work at that place and that represents you know your big opportunity well if you have more choice all of a sudden you know you may be less likely to go through a non-optimal online application process so again really kind of interesting benchmarks here and what I want you to do is I want you to take those two things you know the device based click to apply rate averages and the function click to apply rate averages and once you put them in a box for a second we're going to come back to them.
The next thing that you know I want to kind of talk about here is how to look at what you pay for recruitment media on cost per click and a fully calculated cost per applicant basis when you buy job ads so probably everybody on this phone has heard of Indeed and Indeed you know back in mid 2000 popularized a new way of buying recruitment advertising rather than paying for a posting that would be on a site for 30 days that they brought the the Google advertising model the jobs so you know you only pay when somebody actually looks or clicks on your job ad and you know Indeed has exploded excuse me as a business you know if you read online you know I remember when it was a you know a handful of people and you know I I believe there's sources online that you know say that they grew to 780 million dollars in revenue last year and you know they're still growing at double-digit percentages you know this year so if you think about it more than a billion dollars probably is being spent just with one company right now one quick at a time in recruitment advertise so these are some some industry-wide standards on what a cost-per-click is now this is something that are you know as they say it's either Winston Churchill or Mark Twain people argue about this but there are three types of lies in the world lies damn lies and statistics.
So this is an aggregate number so false and you're looking at this and saying hey I think way under that or I pay way over that there's probably a reason for these are industry average this is kind of a broad average across United States but how much seen here is basically the average CPC in the United States on a job ad is about 55 cents but if you dig deeper you can start to see that the CPC's and this makes sense very based on function there are some verticals like transportations that are highly competitive where the average cost per clicks are significantly higher than let’s say in the the retail world where there's a lot more people that click on those ads and retail that can apply for those jobs than there are the transportation space and so you see a lot of price you know differentiation there the reason why this is important is that when you take your click to apply rate and you take what you're actually paying for that click and again whether you're buying on the click or it's a computed cost per click where you say all right if I buy a hundred dollar job posting and I know I get a 100 clicks on that ad it's a dollar click these are the things that allow you to characterize how much you are actually paying for an applicant and if you can understand that you can start to make business decisions around how to improve your costs if you say ok I'm on average paying 50 cents per click and I've got a 10% click to apply rate I'm paying five dollars you know per applicant and I'm getting a you know a thousand applicants a month paying about five thousand dollars.
What would happen if I undertook an initiative to increase my click to apply rate by 50% so that I got my click to apply rate up to 15% how much money would I save you can actually build a business case around that or alternatively you could say well next year when I go into budgeting I know that I'm paying the market average but I want to start to negotiate and see if I can pay 20% below the market average because it's going to actually you know deliver candidates to me at this price which I believe is more important so this has if you know if you improve your click to apply rate where you improve what you pay on your CPC it dramatically you know impacts what your overall sourcing costs you're gonna pay so what are some of the key things if you wanted to improve your click to apply rate you know if you wanted to get more people completing the application how do you do that you know it's not black magic you know the first thing is is and this is shouldn't be rocket science to anybody is shorten your job application so if you have a job application that takes less than five minutes to complete you have a 385 you get you're quick to apply rate increases by three hundred and eighty five percent compared to online applications that take more than 15 minutes to complete okay the second thing that you want to do is you want to choose great applicant tracking systems like Jobvite and the this isn't you know kind of playing to the audience here Jobvite has spent a lot of time optimizing both its mobile and desktop apply processes so that technically it is very very good.
And there's a massive differentiation between applicant tracking platforms that make it easy for job seekers to apply and those that make it hard so interestingly people don't necessarily do this math when they're looking at an ATS they're saying does it have online interviewing video stuff doesn't do this do that or the bus pinker they blew but if they actually ask them the RFP process or in the sales process what's your average click to apply rate there are major applicant tracking systems out in the market today that have a two and a half percent click to apply rate when you compare that to the average of seven and a half percent you know that I shared with you that means candidates cost three times more through that ATS than average massive difference and then lastly you know kind of optimizing for mobile and making sure that you know your platform can actually upload resumes easily it looks nice it's mobile friendly again Jobvite kind of taken a great role in few weeding in that area but it's in the first point I've got a couple graphs here that I want to share with you besides shortening your application length itself you know making sure that if you're asking questions in your online application that there's a really important questions to ask because you don't want to ask ones that you don't need that because it make it longer to fill out the other thing that's really interesting is there's a relationship between job title length and job description length and click to apply rate.
It's almost like there's a in both of these there's a happy medium where if your job title tends to be too short it's got a low click to apply rate that it's too long it definitely is not a good thing so it needs to be just the right size and you know if you have a job title that is accurate and is easy to read and it's easy to index by the job site and it's you know 51 to 60 characters that's the sweet spot for a job title to be and if you're looking at job descriptions there's also a very clear sweet spot you want to be under a thousand words if you're under a thousand words it is something that a job seeker gets enough information so that they can evaluate you know the the job but not too much that they that it bores them and they move on to something else so you know those are you know if you want to improve your conversion rates you can look at job titles you can look at job descriptions you can look at the length of your application you can ensure it's mobile and you can see your program like my fourth one here and you can make sure you got a great ACS that that has a good quick to apply rate and then on the CPC side there's a couple things the first one is just knowing your industry pricing a lot of job sites that charge on a cost per click basis will go into a employer in the employer so yeah I love this idea of only paying somebody clicks on my job but god that seems complex you know it seems really really hard it frantic give you a thousand dollars a month and have you basically make those bids for me and of course they say sure no problem at all.
What ends up happening is is that and I don't think anything nefarious is being done here you know per se but what I am saying is that you're never going to pay a competitive price if that happens you will probably always and this is borne out by data pay an average CPC or an above average cost-per-click so if you know what those CPC you know averages are which you know in this report like we share them with you and anyone who gets these slides you know at the functional level you'll be able to see them infectious here they are you know this is market-based you know CPC pricing for different functions just knowing that and being able to bring that to the sales process is incredibly valuable and then the other part of this you know so first bid smart you know don't be bidding 80 cents a click for your for your restaurant jobs you know bid 80 cents a click just for your trucking jobs and then the other part of it is run lots of tests and what I mean by that is is that everybody thinks that all job sites are the same the reality is job sites are not the same they all have different technology stacks all of their marketplaces work differently and so what a bid on one site that may be perfect for getting you what you want may be absolutely the wrong bid on another site so you want to run as many tests as possible just to say oh if I bid 50 cents on this site this is how many clicks and how many applies I get what happens by this 70 cents and do the same thing on the next site do the same thing on the next site.
One of the things that you will learn from marketers is that if you ask them a question they never give you the answer they just say something along the lines of well that's neat idea let's go test it because what was true six months ago may not be true now and here's a little factoid and this is I think the most interesting stat that I'm going to share with you today and I'm almost done with my statistical overload is there is an incredibly important relationship between when a job site gets jobs and when how many applies get driven and how many people get hired so at one of our sister sites we did a some research where we found that 28% of people hired applied within the first two days 50% of people hired applied within the first five days and that number you know jumped up to close to 70% when you look at people that apply within I think it was two or three weeks and so we titled this research The Early Bird gets the Job and it's the reason we theorized that people that applied earlier in the process are more likely to get hired is that the way most applicant tracking systems are set up and most recruiting processes are set up is that you star in reverse state order so if someone applies for if the job gets open on Monday and a recruiter starts going through the applications on Wednesday to fill their their slate of candidates for you know for phone interviews they start at the beginning and they go into live enough people to fill that plate then they stop if any of those candidates fall out then they go back and they look at some more new candidates that are coming in.
And so there's this massive massive advantage to applying early and for job sites there's a massive advantage to being sure that your applicants get there early so that you can get credit for the hire okay and so if you take a look at in the bottom right hand corner here some publishers especially job aggregators to basically scrape jobs off of your site or some of the first ones to go ahead and get the job which means even if the applies come from their free aggregator traffic the likelihood that those people will get hired is significantly higher than let's say a niche site or a secondary site that you use and you only use when let's say you've been advertising a job for a couple weeks and you haven't found anybody that you're looking for and so there's some research that we did that basically looks at the time it takes for a publisher to get the job a job or to get the job to its first click and so there are some sites out there especially niche and mid-level sites that are you know sometimes not part of your sponsor all the job inventory they're getting these jobs like days and days sometimes weeks later and if you're evaluating those sites based on the number of hires they generate interestingly you are putting them at a disadvantage it's basically starting a 100-yard dash with half the people with the 50-yard line and half the people at the beginning of the race so all right and then the last thing to kind of optimize what's going on is to use all this information to calculate cost not necessarily at the higher I would argue but at the cost per quality applicant so as I mentioned earlier you know there's a lot of reasons why somebody might not hire someone they came in late the process you know hiring manager cancels the requisition but you should be able to do a really good analysis on how many qualified applications are driven by a particular source and you evaluate your candidates on that metric.
Okay so if your ears are not yet bleeding with all of the data that I've just given my friend Matt is going to try and finish the job here with some really interesting data from from Jobvite about sources of applicants and hires.
Matt: Great, thank you Chris! And yeah just to close out on on the Appcast up and to kind of do a shameless plug for Appcast I'm definitely a fan of the technology I mean as a marketer the predictability of the pipeline which is ultimately what Chris's organization is helping with is something that we really wrestle with and I'm sure you guys as recruiters do as well I mean nothing would make me happier than to find out that Google is offering some cost per lead rather than a cost per click and so you know having the option to be able to add some predictability into the cost for applicants is I think really really great technology and it's very relevant to what we're talking about because you know the way we look at it is there's really only two controllable variables in the hiring process one is the cost per hire the other is the time to hire and then obviously you guys as recruiters are trying to use that spidey sense to figure out the quality of the hire but you know quality isn't necessarily something that we can teach but we can do a lot to help with the cost per hire as well as the time to hire so what we're going to do is kind of broaden the discussion beyond just the job boards although that is always going to be a large source of applicants and Chris talked about how you know the technology with that cast will enable you to predict the costs per applicant but what we do is you know because we are an applicant tracking system and have the metrics all the way through to where the hires are actually coming from we can take that one step forward.
And you know there's a number of ways that you can look at this data we launched a benchmark report a couple of weeks ago and I would encourage you guys to all download that you can grab it off of our website we're not going to go through the entire thing but it does highlight every stage of the funnel so that you can benchmark yourselves both with that top of funnel stuff that Chris talked about as well as the conversion rates all the way through things like applications to interviews interviews to offers and offers to hires but in this slide what we're looking at is we're comparing where the applys are coming from from where your actual hires are coming from so you can see here that the percentage of application is actually over half driven by the job boards but you're only hiring around 18% of those people so the great thing with this is that Appcast provides a way to optimize that spend I wouldn't want to misinterpret I wouldn't want you guys to misinterpret the slides or suggest oh you know I'm not making good hires from the job boards it's simply saying the conversion rate from applies to hires is lower than in some of the other categories so you really should be looking at ways to optimize that spend and add cast is one of the ways to do that but the other piece you know converse to that is referrals and would be one and internal hires would be one that both jump out at me right there are teeny slivers on the apply side but they represent nearly equivalent numbers of hires as does the job board.
So you know some things to think about is what sort of internal mobility program do you have how are you in power your employees to you know be able to learn about internal opportunities and apply for jobs and make those lateral moves because it does represent at most organizations a significant percentage of the hires and then the other one is the young referrals right so I think we all know that referral hires are some of the best folks that you can bring into the organization we call that the accountability factor here at job bite right these are folks who typically have some personal connection to someone within the organization and that creates a higher level of accountability for those folks when they come into the company you know my brother-in-law referred me for this job and I don't want my sister to kick my butt so I'm going to really work my tail off with this company and the data backs that up as well our set our staffs inside of Jobvite show that those folks have roughly 15% faster time to hire stay 10 to 20 percent longer and perform 10 to 20 percent higher on the performance reviews.
So we've got some good stats to kind of backup that those are two key areas of actual sources of hire so you know it's just an opportunity to kind of look within your organization and be sure that you're doing the things necessary to empower both internal mobility as well as your referral program so you can see here that it stack ranks them all and as I've already talked about right the internal hires and referrals are the two biggest the job boards again it's the percentage and you can see the effectiveness rating so you're comparing the number of applications versus the number of hires and so again I wouldn't look at this as best to worst I would simply look at this just like I as a marketer would look at my source of leads so one of the largest sources of leads for us are remarket ads so similar to what Appcast offers for you guys as recruiters those are those ads you know with their brand product those are those ads that chase you around the internet and try to get you to come back right and those do really well for us in terms of the cost per lead so we can find people at a relatively low cost we may not get as many customers from those leads but that's okay as long as we're able to run that program at a relatively low cost per lead so back to the Appcast off right as long as you can maintain an effective use of that spend with the job boards it isn't necessarily an ineffective Channel you just need to be spending the money effectively for it to work and then the third one that I want to touch on right below the green here you can see the custom campaigns and so this is relatively new but it's definitely emerging as as sort of the new channel within recruiting and so we're starting to measure this you can see that the higher count is relatively low but the effectiveness is incredibly high.
So what that tells us is that this whole campaigning concept is on the rise and we're seeing that across the board so thinking about how to build that passive pipeline right we've historically measured things and Ed on the chat asked a question about this and we'll cover it in more detail but Ed's question was about you know where does the higher when we talk about time to hire went where does the clock start ticking and we've historically in the industry as well as your a Jobvite measured that around the date that they first apply but we're seeing that change quite a bit and so the biggest shift has been in the amount of research that folks do before they apply so with the emergence of things like Glassdoor mobile career sites social presence from companies applicants are doing a ton of research before they actually apply for a job and it's the same thing we're seeing in marketing I think the latest study from Gartner showed that over 50 percent of the research is done by a buyer before they ever actually engage with a vendor and the percentages are as high or higher I would bet in the recruiting space and so it's just something to be thinking about in terms of your passive pipeline right.
What are you doing to keep a database of folks who haven't necessarily applied yet or who applied for a job but didn't I get it the silver medalists as we say and then what are you doing to stay in touch with those folks through some sort of outbound marketing efforts whether it's you know at least a periodic text-based email and if you're more sophisticated starting to leverage social media and HTML you know webpage campaigns so those are some things to be thinking about in terms of where the applicants are coming from where the hires are coming from and then the shift from purely focusing on once they enter the funnel to thinking about you know pre apply stuff like campaigns as well as the stuff that Appcast is doing with them with the remarketing so just to put some numbers behind these so to kind of summarize those three slides this will give you some stats to validate the effectiveness of the hiring and so as I mentioned the internal hires the referrals and the custom campaigns at least based on the benchmark of our couple thousand customers is showing that these are the three most effective channels in terms of you know the number of hires that you're making versus the number of apply that you're getting.
All right so in terms of optimizing spend so I talked a little bit about this which is keep in mind right you're over 90 percent of your applicants are going to be covered just by the two channels of the job board and the career site so those are two areas to really be thinking about optimization if you look back at the percentages that Chris showed earlier it's something like a 5% apply rate which is similar to what we have in marketing we know that around 95% of the people who come to our pages - you know submit their information and get a white paper or an e-book or register for a webinar like this aren't going to actually fill out the form so there's a huge opportunity there right so you should be looking at as we've discussed the job boards how you're writing those descriptions are you optimizing your spend are you doing it on a cost per click or a cost per apply and then for your career site as Chris mentioned and you know something we're big believers in here is your site mobile optimized so can folks apply for a job on your site a subtle point here is that we've got a lot of career sites out there from competitors of ours that have a optimized career site but you cannot apply for a job on a mobile device and we would really discourage that even for our own customers until you're ready to have a mobile apply we would discourage you from having a mobile career site because if you think about it from a candidate's perspective they're going t look at a job become interested in that job and then click to apply and then have the form blow up and they can't finish the process.
So it's a really bad candidate experience so you want to approach that career site holistically and kind of do it all in one shot so if you don't already have a mobile optimized career site when you do make that leap you're going to want to be sure that your apply process is totally optimized as well and then you know the amount of steps oh he already covered this so I won't go through it further but you know it's just this idea that you want to make it easy to apply the more formal fields they have to fill out the lower apply rates you're going to get as well as the the requirement to create a profile so we see huge drop-off with the applicant tracking systems that require profile so we haven't gotten it down to the one click apply like you've got that with Amazon that you know buy with one click but we do have it down to two clicks so on a mobile device through Jobvite you can apply with them just two clicks and so you can really optimize the amount of candidates you're getting in that conversion from viewing a page to actually applying for a job all right so over the time to hire so that stuff was more about optimizing the spend and then now we're going to talk for a couple of minutes about trying to optimize the time it takes to hire and I'm sure you guys have seen some of these stats and it varies depending on the job that you're applying for.
ut you know the idea of leaving seats empty within your organization you know what does it cost your business to have an extra 10 days of an engineer not coding or you know a director of a department not managing his people or her people and so those kinds of things have a huge impact on the bottom line and so we'll talk briefly about some of that stuff so the the time to hire has actually gone down slightly so you can see in 2015 if it was 43 day time to hire and this year it's 39 days and again we're only looking at our own customers and so part of what we think is helping is the shift to less you know less barriers to entry so the Mobley optimized experience the ability to apply with just two clicks as well as the amount of additional research that folks are doing as we talked about so they're more ready to engage with you when they apply because they're just simply doing more research before you know before they actually submit an application or engage with your organization and then the number of applications so this is another one and you know some of this is I think really varies by organization and the number of applies varies wildly especially between urban and rural areas we have customers in technology for engineering positions that receive over a thousand applications per job and so you know I just wanted to kind of put a disclaimer here there's a very wide variance on the number of applications correct and so this is relevant to a point I'll make later which is that you know you you don't want to stop just at these broad-based metrics it's a good starting point but you really want to dive deeper because things like applications per hire for an engineering job are going to vary wildly.
As I'm sure you guys know from a job like a customer success position or say you know a retail position so those are some things to think about but you can see that the number is down so on average we saw roughly 60 and 2015 and we're now seeing around 52 applies per job req this year all right and so this one you know may not be a surprise to you but people are getting pickier here right and so what we're seeing here is the conversion rate is down from offers you know the amount of folks that make it from the interview to the offer and so you know because those go both ways to really depend on what you know the individual is his doing whether or not it was on the offer side of you guys not wanting to proceed with that candidate or them excluding themselves from the process but we saw roughly 90% of the folks I'm converting from interview to offer in 2015 and that's now down to 83 percent this year all right so some ways to accelerate that and we've talked about some of them through this process right it's obviously you want to optimize in the ways that Chris and I spoke about in terms of getting them into the funnel but then accelerating them through that process you know one big way is as I mentioned you want to drill into each stage of the funnel so we talked about this both in marketing as well as in our product for recruiters in terms of the funnel bottlenecks right.
So you really want to drill into the different stages you can find the benchmarks in our report and understand what you know what the gaps may be so comparing with the benchmarks are their individual areas where you guys are seeing a where you guys are seeing a gap in your performance versus that benchmark so you may have a really good interview to offer but you know have a bottleneck say in the the applicants to interviews and that could be due to things like a slow response time and engagement with the hiring managers so definitely drill into the different stages of the funnel and try to figure out where you have room to optimize and then the point I already made right with the campaign's is you know really be thinking about how you can warm up candidates ahead of time so your presence on Glassdoor your on social media as well as you know campaigning right so if you are using a tool like Jobvite are you leveraging the ability to run those outbound campaigns and keep candidates warm and educate them about your organization at the very least if you're just starting out with your campaigning simply putting together a list in Excel and doing a quarterly text-based email out to folks to let them know about you know new jobs that are opening up or expansion of a new office or on any philanthropic work that the company is working on so even those baby steps can really help and then you know this parallel between SMART goals right I don't know you guys know these acronyms with the performance management and goal-setting.
But you know data has obviously been the theme of this webinar and and the point we really want to make here is to make that experience for candidates a smart one right and so be thinking about how if you're able to measure every stage of the funnel be sure that you're setting attainable goals for yourself so if you're not benchmarking in relative terms using our benchmark report definitely be doing absolute benchmarks so take a look at where you stand so set an initiative look at what your current benchmarks are and set some attainable goals for yourself around getting you know some incremental improvement and and then lastly you know it's it's really about data so you know be sure that throughout this entire process you're documenting you're figuring out the data points you're keeping track of the data points and you're using those both in terms of managing up to the executive team to show them both the weaknesses and where you're improving as well as holding the teams accountable you know we talk a lot about it internally and I think the best way to drive accountability within an organization within our marketing efforts within your guys's recruiting efforts is around data right when you have facts to back up what's happening within the organization it makes accountability much much easier all right so Chris you want to kind of close out on the two areas that you that you went over.
Chris: Yes thanks Matt. I'm sorry I had mute on we seemingly always have got some level of construction going on here and so someone was seemingly using every tool imaginable to dig a hole above my head. So again I just to wrap up our talk you know on the the the top of the funnel stuff you know understanding and characterized here click to apply rate and understanding and benchmarking what you pay on a cost per click basis allows you to understand those two statistics allow you to calculate how much an applicant costs your cost per application you know so again very simple if it costs you 50 cents to click and ten percent of your candidates make it through your process you're going to be spending five dollars for an applicant but you know understanding that that five dollars per applicant is a valuable metric but what's really really important is to be able to evaluate your sources on how much it costs them to drive a quality applicant for you and that's something that everybody's different everyone can define quality differently but most of time within an organization you know you can you can define that to a standards and as long as you hold that standards the same you know quarter-over-quarter you'll be able to create some great benchmarks. So hopefully that was helpful that's all I got but guys thank you so much for for the time today do we have questions.
Matt: Yeah, we do have a number of questions I think Rachael is that right.
Rachael: Yes one of our first questions is how do I ensure this does data reports back early in my ATS and in my job advertising portal.
Chris: Sorry so the question was is the question was how do we make sure that this data is recorded accurately.
Chris: Okay well on the front end of the funnel understanding you know your click data and your conversion data there's a couple ways to do it you know one is the manual way where you know you're downloading from all the different publishers that you're working with their click data and what they're charging you for those clicks and then you're marrying that up with application data that comes from your ATS there are platforms we make them that allow you to place a conversion tag on your applicant tracking system so that you can using third-party software almost kind of like Google Analytics understands the clicks that you're getting from all your different sources what you're paying and how many applys are being driven and so you can do that top of the funnel cost metric work and then you would still have to marry it up with the conversion data from you know from applicant equality applicants to hire that that would come from Jobvite. Matt is that close to where how you would answer it.
Matt: Yeah I mean I think that covers it I think we had a question about the LinkedIn question Susan okay so would LinkedIn be considered a job board or a career site and so for us and if you know feel differently or have a different position Chris chime in but you know for us we consider the career side being where you can actually apply for the job so the career site is hosted you know usually by your applicant traction vendor and is a link on your own website we view LinkedIn and they're actually a customer so they use us as their career site and for their applicant tracking system but we view them as a job board as we do Glassdoor I mean they provide other services obviously as well but you know the job advertising is it's a huge part of you know their revenue and and how they operate.
Chris: I agree.
Rachael: Great so besides the four main metrics discussed today what other recruiting benchmarks are in front to track.
Chris: Sure yeah I mean listen I could sew a whiteboard with things to measure I think that you know we've given you a perspective you know on a few things to look at I think that really the the metrics that you decide to pay attention are a function of two things one they accurately reflect and measure a critical part of the process that you are involved in and number two they are something that you actually have control over so what I mean by that is that if you're measuring something and you there's nothing you can do about it it's like knowing the information does not change your management it may not be valuable to measuring this is that this is a doctor thing they actually find that if they measure things that they can't do anything about it lends itself to poor medical decision making because it confuses the discussions that are going on and so there's a ton of stuff that you can measure the way that I would get down to it you know my email will be in the deck tickets you know sent out Matt is as well be happy to chat with the offline about what you're recruiting objectives are and what you're trying to do and where you're trying to drive more value because you've got a very large and complex business process and so you know they're elements of it that you can characterize and they're elements of it that you can characterize to make a difference in and those are the ones that you want to measure so it's a non-answer answer sorry.
Matt: Yeah and then the only thing I would ask about it you know to start at a high level if you're not sure what else to measure besides obviously osct per apply is critical with the work that they're doing a Appcast and then just those those standard five stages which we have in that benchmark study which are simply getting that cookie on your site either from your application vendor as we do for customers that Appcast that you can understand how many folks are visiting your site of those how many are applying and then of the folks applying how many are making it to interview your interview to offer and your offer to to hire and the reason I say that is because those are pretty standard stages and to Chris's point there's very specific things you can do about each one we don't have time to go into all of them but the other pieces that you have the benchmark data to understand how you're doing relative other companies out there so in addition to them being actionable to Chris's point I think it's also important to have those relative benchmarks so that you can understand how you're performing versus other recruiters around the country.
Rachael: Great with that we have one last question. If we didn't get opportunity actually answer your specific question today don't worry someone will be following up with you and by the end of this week you should of recording our both companies reports and as well as the slide so with that Chris you want to wrap up someone asked what is the difference between ECPA and CPA.
Chris: Sure a CPA is cost per applicant and that is its two things it can be a metric meaning how much does it cost to generate an application it also can be raa pricing model meaning some platforms like Appcast sell recruitment traffic on a cost per applicant basis in ECPA is the effective CPA and that is that is exclusively a metric where you are you know measuring it's basically synonymous with the metric definition of cost per applicant you're saying how much does it cost to generate an applicant from some type of recruitment media even if I pay for that media as a duration based posting or on a cost per click or along those lines it's basically a calculation of what your cost is going to be.
Rachael: Great and with that we're going to wrap up the webinar thank you so much everyone for attending today keep an eye out for our reports the slides and recording this week thank you and have a great day thanks.
Chris: Thanks everybody.