Glossary: HR & Recruiting Definitions
Channel effectiveness is a recruiting metric that provides insights into which of the recruiting channels a company uses are most effective in generating qualified applications.
To address as many qualified candidates as possible with their job advertisements and to motivate them to apply, it is common for recruiters to use several channels.
With the help of the recruiting KPI “channel effectiveness”, they can see at the end of the recruitment funnel how effective the selected recruiting channels have been and whether it was worth investing in them.
The effectiveness of a particular recruitment channel is measured by how many applications were submitted through that channel. Meaning, how many candidates were converted.
Depending on the position, industry, company size, and target group, different channels can be used.
Typical recruiting channels that are used as part of any hiring process include the following:
In addition, trade fair appearances, print advertising, TV, cinema, radio advertising, and the connections of a personnel service provider or referrals from the company’s own employees can all also be used to generate applications.
Read more in our article on cost per hire.
Finding talent through different recruiting channels can cost companies a lot of money. But not all channels work equally well.
When this is the case, there is hardly anything more annoying than investing money in channels that end up bringing in no applications at all, thus driving up recruitment costs for nothing.
This is where channel effectiveness comes in: It helps to identify which recruiting channels are worthwhile and which are not. This in turn enables companies to recruit more cost-effectively.
There is no need for a complicated formula to measure channel effectiveness. However, unfortunately, each recruiting channel used must be evaluated individually.
Different metrics can be used for this purpose. The most common are the following:
Ultimately, the most important measure of channel effectiveness is the number of submitted applications (conversions).
However, the other metrics are also interesting because they, in turn, allow conclusions to be drawn regarding:
We will look at how channel effectiveness can be measured on the different channels in the next two sections.
Fortunately, there are useful tracking tools that allow you to track (online) channel effectiveness. However, these again vary depending on the platform used:
But newspaper ads, radio ads, and the like are still relevant for some target groups and should not be overlooked.
Let’s now take a look at how channel effectiveness is measured for such offline channels.
It gets a bit more difficult when offline channels are used. Here, we distinguish between digital (e.g., radio or TV) and analogue channels (e.g., newspaper or posters).
Unfortunately, there is only the option of manual tracking for measuring (analogue) channel effectiveness. To make this possible, there are two simple options:
On the other hand, it is easier with digital offline channels. Those who use TV and radio to advertise their vacancy usually receive insights into the audience ratings and can thus gain the necessary insights into the reach and effectiveness of the measure.
The more different channels and tools are used in recruiting, the more difficult it becomes to track the effectiveness of the individual channels. But this does not have to be the case.
At least the online channels can be kept in view with just one tool—for example, with the intuitive Applicant Tracking System (ATS) from JOIN.
Recruiters not only receive data-based suggestions as to which job boards, networks, and portals are suitable for addressing the talents they are looking for.
The number of clicks and incoming applications per online recruiting channel (including career site) can also be easily and clearly tracked at any time with the help of our applicant management system.
You can find even more useful functions and advantages of JOIN in our feature overview.
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