In 2018, Recruitment Marketing is hitting its stride. More HR departments are recognizing the strategic value of using a talent pipeline model for vetting and hiring.

But while HR is realizing the value of Recruitment Marketing, investing in the necessary technology can be a tough sell for the C-suite. Here’s some information that will help inform leadership about the financial value of Recruitment Marketing in 2018:

1) Outdated hiring methods increase time to fill and attrition rates

As HR moves to consider new technology resources, they need to understand that there are no silver bullets that automatically resolve key metric lags. What HR often fails to consider is that their own methodologies for hiring are prolonging the time it takes to fill open positions, meaning that they need to re-strategize around new and emerging solutions. One of the biggest issues: sourcing is reactive to job openings. Trying to fill a new role without a talent pipeline inevitably requires more resources to source talent and lengthens time to fill, especially given the diminishing pool of active, skilled candidates.

With the pressure on to fill the role, HR is often less able to actively pursue an alignment of candidate and organizational goals, as they contend with fewer options for whom to hire. At the end of the day, this hiring methodology leads to a much higher risk of candidate misalignment, which can lead to increased turnover, which results in more frequent hiring and greater costs.

No matter how the situation is approached, the old model for reactive hiring is limiting organizational potential while putting HR in a cost control battle it just cannot win.

2) Reactive recruiting decreases your competitive position and increases recruiting costs

In 2017, Aberdeen found that 84% of Best-in-Class companies struggle from a failure to recruit top-quality talent.

Looking at the employment cost of this, Aberdeen’s data shows that low-quality talent is shortening the employee lifecycle to a one- to two-year engagement. In Recruitment Marketing: Getting to the Inbound Candidate (December 2017), Aberdeen found that while the shortened employee lifecycle is not significant news, considering talent quality as an added reason for turnover is new.

When combined with the 39% of talent that leaves a company on their own terms, a failed strategic match between candidates and organizations is a massive problem. In fact, for 25% of companies, this led to an increase in expected spend in talent management and applicant tracking systems to handle the increase in turnover.

In Hiring Tomorrow’s Workforce Today: The Talent Pipeline (January 2018), Aberdeen found that Best-in-Class companies are improving their results using Recruitment Marketing initiatives that build up a proactive talent pipeline.

3) Embracing Recruitment Marketing reduces time to fill and lowers hiring process costs

In 2017, Aberdeen found that the time to hire decreased for 20% of companies and the cost-per-hire decreased for 16% of companies. Aberdeen’s data shows that Recruitment Marketing and the transition to a talent pipeline model is a leading cause of these reductions.

Aberdeen also found that Recruitment Marketing reduced the overall cost of the hiring process by 20% or more for 24% of companies. While the actual cost-per-hire involves other factors, reducing the cost of the hiring process frees up existing HR resources, giving HR more wiggle room to create stronger draw for attractive candidates. Projecting this back to the total of companies realizing reduced hiring costs, Recruitment Marketing reduced the cost-per-hire for 30% of companies, accounting for a significant chunk of the cost savings Aberdeen saw in the hiring process.

In other words, developing a strategic employer brand while building and implementing a Recruitment Marketing plan to promote that brand to targeted candidate audiences is helping to reduce the cost of hiring by more strategically utilizing internal hiring resources.

In summary, as the competition for talent rises, companies that do not update their hiring methodologies to include Recruitment Marketing and talent pipeline models will face increases in time to fill, attrition rates and the overall cost of hiring.

By contrast, adopters of Recruitment Marketing are able to increase their competitiveness in the hiring market. By adopting a proactive talent pipeline approach, these companies are able to decrease time-to-fill and cost-per-hire rates.

The reason for this observable cost benefit is that creating early alignment broadens the talent reach while eliminating certain recruitment stages by the time a position becomes available.

In this way, HR can decrease the cost of the hiring process by reducing the cost of sourcing, vetting and hiring. This means that organizations are missing a critical piece from their hiring process if they continue to reactively hire and limit their Recruitment Marketing reach.