Has your vacancy been open for weeks and are you considering a recruitment campaign? Then you’ll want to know what you’re getting into beforehand. There’s no fixed cost when it comes to a recruitment campaign. The investment comprises a number of key elements: strategy, creative work, media budget, campaign management and shortlisting. The scale of each component depends on the role, your target audience, your region and the competition in the labour market.
In this article, you’ll find out what elements make up a campaign budget and what factors determine its size. You’ll also learn why a fixed price for the whole project is by no means always realistic. This will help you compare quotes more effectively and ask the right questions during an initial meeting.
How much does a recruitment campaign cost? The short answer
The costs of a recruitment campaign consist of two types of expenditure. The first part is labour: someone analyses the target audience, creates the campaign, makes adjustments and selects candidates. The second part is media: the budget allocated to advertising platforms to ensure your vacancy reaches the right people.
The workload can be accurately estimated in advance. The media component fluctuates in line with the market. A campaign for a technical role where there is a shortage of candidates in a region with many competing employers usually requires a wider reach than a role for which there are plenty of suitable candidates available.
A transparent quote makes that distinction clear. If you’re given a single total price without a breakdown, ask for further details. That way, you can see which part goes towards the work itself and which part is actually intended for outreach.
What does the investment consist of?
A data-driven recruitment campaign consists of five building blocks. Not every campaign requires the same amount of each component, but together they make up the budget you set aside in advance.
Would you like to find out more about data-driven recruitment?
- Recruitment using AI and data
- Takes an average of 3–8 weeks to complete
1. Strategy and target audience analysis
Before a single advert goes live, it must be clear who you are looking for and what really matters to that person. Consider terms of employment, fringe benefits, communication and the application process. Employers often think that certain benefits are decisive, whilst data shows that the target group actually has different priorities.
This stage takes time, but it prevents you from spending your media budget on a message that doesn’t resonate. If you’d like to take the first step yourself, read how to carry out a target audience analysis for blue-collar vacancies.
2. Content creation and job vacancy communications
This includes advertising copy, visual material, the job advertisement text and the page candidates land on. Do you already have suitable images of your workplace and a strong job advertisement page? If so, this part will be smaller. If everything needs to be created from scratch, it will take longer.
3. Media budget
This is the money that goes to advertising platforms. It is the most variable component, as platforms base their prices on supply and demand. You can read more about how that works below.
4. Campaign management and optimisation
A campaign that you launch and then leave to run on its own often wastes your budget. Management means monitoring results, adjusting adverts and reallocating your budget to what works. At FosFor, this is done during a weekly strategic meeting to discuss campaigns, results and next steps.
5. Shortlisting and follow-up
Attracting applications is one thing. Following them up quickly and identifying the right candidates is quite another. This part of the process takes time, whether you do it yourself or use a partner. FosFor takes care of the pre-selection and guidance, meaning that, on average, clients only interview the 2 to 4 best candidates each month.
| Building block | What you’re paying for | What determines the size |
|---|---|---|
| Strategy and analysis | Target audience, labour market and competition research | How much is already known about your target audience and market? |
| Creation | Texts, images, jobs page | Existing materials and number of variants |
| Media budget | Reach on advertising platforms | Scarcity, region, competition, timeline |
| Campaign management | Monitoring and making adjustments | Duration and number of campaigns |
| Pre-selection and follow-up | Screening, contact, support | Number of responses and selection criteria |
What factors make a campaign more or less expensive?
The size of your budget depends mainly on how difficult it is to reach and persuade your target audience. These are the most important factors:
- Shortage of this profile. The fewer suitable candidates there are, the greater your reach and persuasiveness need to be. Think of welders, fitters or marine electricians.
- Competition from other employers. If more companies are looking for the same profile, advertising space becomes more expensive.
- Region. A small recruitment area with few suitable candidates requires a different approach to a large one. With smart targeting by region and role you’ll stop your budget from slipping away.
- Timeline. Your recruitment timeframe is taken into account when setting the price. If the role needs to be filled quickly, this may be a reason to allocate a larger budget over a shorter period. Assess whether this is necessary on a campaign-by-campaign basis.
- Job requirements. Strict requirements narrow down the pool of candidates. Whilst this is sometimes justified, it increases the cost per suitable candidate.
- The appeal of your offer. If your terms and conditions and your message resonate with what your target audience values, people are more likely to respond. You cannot compensate for an offer that doesn’t resonate by increasing your media budget.
- Your application process. If you lose candidates because of a slow follow-up or a lengthy form, you’ll be paying for reach that yields nothing.
Platforms confirm that market factors determine the price. Indeed states that the cost of a sponsored job advert is based, amongst other things, on the competition for the role, the location, your recruitment timeframe and the number of jobseekers applying for that job title.
Why a fixed rate is not always realistic
A fixed price for the work is certainly possible. A fixed price for the entire campaign, including media, is often not. The reason: advertising platforms do not themselves operate on a fixed-price basis.
LinkedIn, for example, sells adverts via an auction. Your bid competes with other advertisers who want to reach the same target audience, and the cost of winning that auction depends on your bid and how sought-after your target audience is. Exactly how much you pay also depends on the campaign objective you choose, such as a click through to your website.
It works in a similar way on Indeed. With a daily budget, you may pay per click, or in other set-ups per application initiated, depending on your account and the market. How much you spend depends on the budget you’ve chosen and how well your job advert is performing.
A partner who promises a fixed total price must therefore factor in these fluctuations somewhere. You should therefore ask how the media component is calculated and what happens if the market performs below expectations. If you want to compare different pricing models, read Compare recruitment agency fees: commission or fixed fee.
How does the budget relate to a current vacancy?
A campaign budget feels like an expense. A vacancy that remains unfilled for months also costs money, although you’re less likely to see that reflected on an invoice. Think of colleagues working overtime, delayed assignments or work that gets left undone.
It is a good idea to compare the two side by side before setting a budget. You can find out how to calculate the cost of a vacant post in Calculate the weekly cost of a vacant post. This calculation gives you a clearer idea of what budget would be reasonable for your situation. It does not guarantee a result, however.
As a guide: at FosFor, vacancies are filled within 3 to 8 weeks on average, depending on the role and target group.
How to draw up a realistic budget in advance
By following these steps, you’ll arrive at a budget that suits your vacancy:
- Define the profile clearly. Which requirements are truly necessary, and which are simply preferences?
- Gather together what you already have. Visuals, a ‘Careers’ page, data on previous job vacancies.
- Take a look at the market. How hard is it to find someone with that profile, and who else is recruiting in your area?
- Choose a realistic timeframe. A short-term role may be a reason to increase the weekly budget. Discuss in advance whether this is necessary for your vacancy.
- Decide who will take over. Do you have the time to respond and screen applications yourself, or do you outsource that work?
- Agree on times for monitoring. Make a note of what you’re basing your decisions on, so that you can make adjustments in good time. You’ll find tips in Measuring recruitment campaign figures.
Curious to find out how these building blocks come together in a programme? Take a look at our data-driven approach, from strategy to the initial shortlist of candidates.
Would you like to know what budget is appropriate for your hard-to-fill vacancy? An accurate estimate requires information about the role, the target group and the region. Arrange an introductory meeting, then we’ll work out together which elements your campaign needs.