Recruiting is a business-critical task for medium-sized and large companies. As a recruiting manager,
your goal is to create the conditions for the operation and growth of the company
by attracting skilled professionals and executives who contribute their work performance. The result is a contribution to value creation,
which is ultimately reflected in an average per-capita revenue per employee. Conversely, this means
that for every day a position remains unfilled, your company incurs costs equal to the lost revenue.
As a recruiting manager, you face the challenging task of using your limited budget in a way that makes the greatest possible contribution
to achieving the company’s goals.
Impact of the Passive Market
The passive candidate market is often not considered at all or only as an escalation stage in the recruiting process. Instead,
the familiar, well-integrated measures for the active candidate market are implemented—and then it is waited to see if that is sufficient.
Often, if success does not materialize, there is another content iteration with the hiring manager, the position is
adjusted and re-advertised. As a result, the company loses week after week—the attainable per-capita revenue dwindles,
and in the worst case, so does the hiring manager’s confidence in recruiting success.
A Conservative Example Calculation
The average time-to-hire in Germany is 138 days, with a moderate per-capita revenue of €150,000 per year.
If you now reach the passive candidate market equally to the active candidate market for every specialist and executive position
in recruiting, and as a result, you fill every second position 20% faster, this reduces your cost of vacancy by €8,000 per position.
This conservative calculation shows how significant the economic impact of an unfilled position is.
Benefits for Your Recruiting Budget
Because the costs from lost revenue are not directly reported to decision-makers, they are
no less relevant in their significance, but often less considered in decision-making. The focus then initially shifts
to the direct costs incurred in recruiting—your budget. Even regarding direct costs, narrowing
the focus to the active candidate market leads to unnecessary strain. Often, if the job posting does not attract suitable
candidates, even more money is invested in the active candidate market instead of allocating the budget efficiently.
Instead of reposting or adding more job boards, investing in the passive candidate market as a complementary strategy would be the more efficient way. The prerequisite for this is that the passive candidate market can be reached with budgets comparable to a job posting. With conventional sourcing solutions or in-house sourcing teams, the average project costs are usually significantly higher, especially when license costs are taken into account. With our active sourcing AI, you leverage the efficiency advantages of artificial intelligence and can reach the passive candidate market at low cost. 
