Calculate your hiring budget
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Is there a such thing as spending too much money towards a specific job post and throwing money down the drain. Or. Is there a magic number to where we could have the balance of both. Uh, good budget to reach our hiring goal and not overly put too much money towards our hiring budget. In this video, we're going to be diving into all things, hiring budgets. So definitely hit the like button down below and stay tuned because we're diving into it in this video.
And if we haven't met and you're new here, welcome to the channel. I'm crystal, I'm the hiring expert from crystal, bella.co. And we manage over a 1 million and ads every single year for tons of small business owners all over the world on indeed. So that is kind of our thing in addition to being successful with getting quality higher.
So, if you need more help with that. Definitely check out the link in the description for our talent attraction formula. Now let's get back to the video.
So first I want to start off with hoping, you know, your monthly hiring goal, and it's been broken down because if you're coming into this video, And you're like, I need to hire 50 workers. Then I want you to pause this video, check out this video right here that we just did, which is going to help you break down your hiring goal, realistically factoring in your marketing or turnover.
And your cost per hire. Watch that video and then come back to this one and once you're done, but hopefully. Right now, you know, your monthly hiring goal. Now, once you have that, it's been realistic. You've gone through that whole video process. Then let's go ahead and take it to the next step.
Let's say you wanted to hire a 10 workers, but you're anticipating some turnover. So let's just say you want to hire a 10 workers at the end of a 30 day period.
And we're going to factor in the people that, you know, you're going to lose. So let's say we're gonna hire 15 people and you're planning on sticking with 10 of them. By the end of the 30 day period is the same that they've been through the whole process they passed. This is kind of normal for you.
This scenario, right?
The goals may be bigger, but we've broken it down still to where. We're including that turnover. So now that we have our new hiring goal, typically that we're dealing with, we want to go ahead and times that by our cost per hire. So let's say it's a hundred dollars. We're going to have 15 workers times our cost per hire of a hundred.
We're going to need $1,500 to go ahead and spend towards hiring ads in order to get these workers. No, I'm not saying that there's not some free ways to go ahead and get some workers, but it's not going to be nowhere near as fast. Um, is automated or just as efficient to go ahead and spend the money to get those results. You, you could focus on money generating activities.
Worker retention, worker satisfaction, processes, training, like creating that fun environment.
Just making sure that they're set up for success. No, that you're there to communicate with them. That you have their back. There's a lot more things that your team could be focusing on. Versus manual sourcing.
Spend the money towards it. Would it be. Saving so much more in retention if you're focusing our energy into some of those other areas. All right. So now that we have that budget, let's dive into how you should split it.
So now I'd want you to kind of break down those typically 15 that you're anticipating and break them into 25 mile radiuses. So one job post will typically span a 25 mile radius. So by doing that, that's just going to help you kind of get. Broader picture of which specific. Budgets that we need to allocate towards different ones, because eventually you're going to say, okay, we have this specific city, a, B, and C. We have five here, six here, and maybe a few over here.
So that's going to play with the budgets right there. Just making sure that they're within typically a 25 mile radius. So as long as you have it grouped into a 25 mile radius, you are ready for the next step.
all right. So now that you have them grouped, I want you to go ahead and use your cost per hire and our case. It was a hundred dollars and just put a budget, matching your cost per hire to kind of go with. The allocated groups that you came up with. No, that's going to be your starting point for your budget. That should really be your max. Typically what you're looking for. Just keep in mind, you're going to have ads that perform differently. One ad may do really amazing. You may have leftover budget.
One ad may need a higher budget. So just kind of use that as the baseline and transfer the budgets as you need it.
So, how do you know if you're spending too much money?
Well, in order to not for spending too much money, you gotta be keeping track of your hiring goals. So if you had. A specific hiring goal of 15 workers and you split it up into three groups. You would want to know when a specific group has been fulfilled, you've reached that higher end goal. So you could turn off those ads.
Another thing to keep in mind of is interview availability. If your interview availability gets completely full and you're having to have them schedule an interview two weeks out, three weeks out, then you are just throwing money down the drain. You would need to switch to a different interview tactic in order to hit your hiring goals.
If you did have interviews going out two to three weeks, you were in definitely not projected to typically hit your hiring goals at that point, just because you need to produce a certain amount of interviews in order to hit. One new hire and you got to make sure those numbers equal out. So in that case, I would typically were free towards a group interview, whether it's a group zoom interview.
Or a group and person interview.
Another thing you'd want to consider is how many people are applying. For that specific ad in that specific city. So what we see sometimes is an ad that's basically stalled out or not getting anywhere near the performance that we would need in order to hit the goal. In this case, I would recommend switching to a different advertising city and paying attention to those results to make sure that you're still able to hit your hiring goal and keep that budget in aligned with your cost per hire.
Getting traffic could start to seem a little bit easy for some people, however, others. May have a little bit more difficulty trying to get to speak to the right people at the interview. In that case, you definitely want to check out your deal-breakers on your application to have a whole video on that. So again, check that out right here.
And let me know in the comments, what problems you're having with your workers. And hopefully I can create a video for you.
And the future, but in the meantime, make sure you hit subscribe and I'll see in the next one. Bye guys.
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About Me
Hey there, I'm Krystal!
As a Recruiter and an exceptional Hiring Expert, my passion lies in guiding entrepreneurs on the art of attracting, hiring, and onboarding talented individuals. By enabling them to cultivate their dream team, I empower entrepreneurs to foster business growth while achieving a life of delegation and mental freedom.
