If your community has a job vacancy you might pay to post the advert on relevant job sites. You might then filter through the spam and also spend time asking around to see who else might know someone to recruit. This can all be measured in terms of money, resources, and time. We can then use this calculation to determine the cost to attract a single job applicant.
A simple calculation can be the cost of advertising via current mediums contrasted with the cost of hiring via the community. This assumes the quantity and quality of candidates is consistent. A better approach would be to understand the cost per applicant (CPA) and the cost per qualified applicant (CPQA).
To measure the cost per applicant, we need to know the following:
- Cost per applicant via the community. This includes typical costs if the community is created as a recruitment tool (e.g. technology, staff, processes, overheads) and additional costs (e.g. time spent writing the advert, filtering spam, overheads).
- No applicants received via community job advert.
- Cost per applicant via traditional methods. This again includes time spent writing the advert, filtering spam, posting job advert to multiple boards.
- Number of applicants received via traditional methods.
- Total number of applicants recruited through the community.
Community ROI Template
You can drop these figures in this spreadsheet or follow the process below.