What is targeted recruitment?

Targeted hiring is a process in which an organization is more strict about who its vacant positions are marketed to. “Targeted” hires might be candidates who have very specific skills, are located in a specific area, have a disability, or are part of an underrepresented demographic group (women, LGBTQ+, Hispanics, etc.).

There are four major objectives of targeted recruiting:

• To acquire organizational competence in a particular subject.
• Increase the number and quality of applicants, especially for hard-to-fill positions.
• Make sure the organization represents different sections of society.
• Reduce the cost per rental.

What is a targeted recruitment strategy?

A targeted recruitment strategy is a predetermined plan to advertise job opportunities in specific places and ways that attract candidates with certain experience, skills, or attributes.

A good targeted recruiting strategy is very specific in its intent and goals and uses data to track ROI. The strategy needs to effectively market to the type of candidate the employer wants to find in their search. It should also be implemented where the targeted candidates live, work and go online. To be successful, a targeted strategy should include regularly posting and promoting existing jobs and engaging potential candidates in the process from the very beginning.

To save time and money (and to ensure it's done legally), some organizations prefer to hire a recruitment agency or  use recruitment software  that specializes in targeted marketing.

What are the benefits of targeted recruiting vs open recruiting?

Targeted recruiting is efficient and allows the recruiting budget to go further because it focuses spending on pre-targeted and qualified applicants rather than on a vast pool of less qualified or uninterested applicants. Targeted recruiting also enables an organization to build its brand presence in a geographically or industry-specifically selected, valuable area.

Additionally, it can help create a more skilled and diverse workforce, which can:

• Boost employee morale
•  Increase employee engagement
•  Reduce the turnover rate
• Show commitment to local communities
• Reflect the importance the organization places on representation

Open hiring (sometimes called open recruitment) involves hiring individuals regardless of specific skills, background, or demographics. Open hiring can include hiring people with criminal convictions, homelessness, or a lack of work experience.

The purpose of open recruitment is to intentionally consider individuals who are often overlooked for employment in roles that do not require specific skills.

The benefits of open recruitment include more than just opening up a wider pool of applicants. Other benefits include:

• Improving diversity
•  Increased  employee retention (employees hired into open positions often appreciate being given the opportunity to work)
• Speed ​​up recruitment process due to fewer screening stages
• Supporting local communities

However, an open hiring strategy may mean that organizations need to place less emphasis on work history and skills and focus more time and cost on training and development.

Is performance based pay an example of targeted hiring?

Yes, pay for performance is an example of targeted recruiting because businesses only pay when a qualified candidate submits their job application. Instead of spending money on tenure-based positions, a job recruiter using pay for performance can create a targeted recruiting strategy around set goals. This allows an organization to put money toward meeting those goals, track results, make adjustments in real time, and measure ROI.

How does targeted recruiting reduce cost per hire?

Targeted recruiting reduces the number of applicants and saves time in the hiring process, which reduces the cost per hire. It also reduces costs by finding high-quality candidates who are a good fit for the organization and have the potential to become loyal, long-term employees.

Three common  recruiting expenses  include:

• Hiring costs:  The hiring process alone for an $8-per-hour employee can cost ~$3,500.
• Training costs:  In 2019, the average cost of training for each employee was $1,286 per year. Additionally, each employee spent an average of 42.1 hours in training.
• Turnover costs:  It is estimated that it takes more than six months for a company to recover the investment made in hiring a new mid-level manager. If a new employee leaves before six months, all hiring costs are lost and the employer has to reinvest in hiring another one.

Targeted recruiting reduces the costs of recruitment, training, and turnover because it focuses on a subset of high-quality employees who, once hired, are more likely to stick well with their employer and remain with them for a long time.