Croatian MR licences 205/20 i 359/20 · Since 2020
For employers8 min readBy: People Pons team

Job ads: are you paying for applications or candidates?

A job ad brings applications, and someone has to call, check and reject each one. What that work costs you and what to ask a supplier for instead.

When you urgently need a worker, the offers all sound alike: "we bring you applications", "x times more applications", "calculate how many applications you could get". Before you pay for a job ad or a campaign, check what you are actually buying and where the cost nobody mentions is hiding.

In short

  • An application is a name and a phone number. A candidate is a person someone has verified: requirements, documents, real intent.
  • Applications are cheap because someone still has to process them. That work does not disappear; it moves to you.
  • Your goal is a filled position, as fast as possible. The number of applications tells you little about that.
  • A real shortlist is 5 to 6 verified people per role. A list of 150 numbers is still a list of calls you have to make.

1. Three words that get mixed up: click, application, candidate

TermWhat it isWhat it tells you
Click / reachsomeone saw or clicked the adalmost nothing; it measures the ad rather than the people
Applicationsomeone left a name and a numberthat there is interest in something, without saying whether the person fits
Candidateperson whose requirements, documents and motivation were checkedthat an interview is worth your time

When you pay to post a job ad on a portal or run it as a social media campaign, you pay for reach, and the outcome is not part of the deal. Application volume rises with budget. That makes it the easiest metric to buy, which is exactly why it gets quoted.

2. What you are actually buying

Employers call an agency because a person is missing from a workstation, and that seat costs money every day: work not delivered, overtime for the rest of the team, delayed projects, penalties.

The full calculation is in what an unfilled position costs.

For most roles, the speed and certainty of filling the seat matter more than the price of the service. A difference of a few hundred euros in fee is smaller than the cost of a single week of vacancy.

So ask any supplier two things: in how many days will I have a person working, and what happens if they leave?

3. Why are applications cheap? Someone has to process them

An application is cheap because the work on it has not been done yet. Here is what applications to an open ad often look like in practice:

"Hi interested in the job call me"

"I have experience in everything, can start immediately"

(an application that answers none of the questions in the ad)

"What's the pay?", and then the person stops answering the phone

The threshold for applying is very low. When it takes two clicks, you get the person who qualifies and the person who does not know what the job is, in the same pile.

Someone has to call each applicant, listen, verify and reject. If the supplier does not do that, you do. At 300 applications that is several full working days, usually of a manager or the owner, whose hour is the most expensive in the company.

4. Candidate screening: what happens between application and candidate

  1. Advertising that also reaches people who are not actively looking
  2. Collecting applications in one place, with the communication history
  3. First pass: removing the clearly unsuitable, with a reply to everyone
  4. Interview about what the person actually did, where, for how long and why they are moving
  5. Document check: diplomas, certificates, licence categories, work history
  6. Qualification and eligibility check: language, work authorisation, shift readiness, accommodation
  7. Intent check: is the person available for the agreed start date
  8. Candidate presentation: one summary per person, with what you need to decide

Only after these steps do you have a real shortlist.

5. Same role, two scenarios

You bought applicationsYou bought a filled position
What you gete.g. 150–300 applications5–6 verified candidates (often fewer)
Who callsyou / your managerthe agency
Your timeseveral working days on the phonea few interviews
Who checks documentsyouthe agency
If the person never starts or leavesyour problem, start overreplacement within the guarantee
When you payupfront, per campaignon outcome

6. Five questions before you sign with anyone

  1. Is the number you are showing me an application or a hire?
  2. Who runs the interviews and checks documents, you or me?
  3. How many candidates realistically reach my desk?
  4. What happens if the person does not start, or leaves after two weeks?
  5. When do I pay, before or after the result?

FAQ

What does a job ad cost, and what does filling the position cost?

They are two different line items. Posting a job ad is a cost of reach: you pay it whatever the outcome, and your own time processing applications comes on top. Filling the position is a cost of outcome. To compare the two, divide both by the number of hires rather than by the number of applications.

How many applications does one hire take?

There is no universal number. It depends on the role, the region and the conditions, which is why it is a weak indicator. Ask instead how many candidates reach you, and how many of those actually start.

Are more applications always better?

No. Every application carries a processing cost. A better quality indicator is how many applications passed the eligibility check.

Where People Pons fits in

People Pons does not sell applications. We process them at our own cost and send you our summary of each candidate: the position they applied for, confirmation that they accepted the conditions you offer, and quoted statements from the interview about their work experience. You then hire the worker directly.

You get the first qualified candidate within 15 working days of signing the order, as set in the contract. The replacement guarantee runs for 60 days from the worker's first working day and covers every reason on the worker's side: the worker does not show up, cannot do the job, will not work, causes problems and the like. The replacement comes at no extra fee. You pay a one-time fee per hired worker, set in the contract, so the number of applications does not affect it. Workers pay nothing for mediation.

Need workers? See how we work with employers or contact us by phone, e-mail or through the chat with Leo.

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This article is a general guide, not legal advice.

Have a question about your situation? Call +385 91 514 0192 or write to us in the chat or by email (Leo answers in the chat 24/7, and we reply to emails within one to two business days).