Qualitative Market Research - Avoid Recruiting Budget Mistakes in Five Steps

A recruiting budget is a good-faith estimate of ato do if they're unwilling to provide this information is
project's difficulty, based on the specificationsbeyond the scope of this article and will be
provided. The more accurate and complete theaddressed in a future newsletter.) Subtract the hours
specs, the more accurate the costs. To determine aused each day from the total pool. Go one step
recruiting price, recruiting shops rely on theirfurther in your analysis and divide the number of
experience with similar projects, their intuition andrecruits into the total hours used. You can easily
common sense. Many recruiters add a "little extra" todetermine if, at this rate, you will have sufficient
cover unexpected labor and unforeseen problems.hours to complete the recruit. By monitoring your
But not all recruiting shops provide recruiting costsrecruiting budget daily, you'll have time to react if
the same way. Many researchers assume thatthings aren't going as expected.
recruiting budgets include unlimited recruiting hours.Step 4: Avoid budget misunderstandings
Many researchers are unaware that different typesRecruiting costs can be provided as a "cost per
of budgets exist. That is, until a recruiting shop asksrecruit." That can lead research buyers to believe
for more money. But if you don't know how much ofthat, no matter what, each recruit will cost X number
your recruiting budget has been used, or how well it'sof dollars. Although it's sensible to use "cost per
been managed, how do you know it's time to spendrecruit" to compare prices, it doesn't tell the whole
more?story. For example:
To ensure that you get the respondents you're- If recruiting was difficult, and only six respondents
expecting within the budget you've allotted, it payswere recruited per group instead of the eight that
to know what your dollar buys. There are two typeswere asked for, don't expect to only be charged for
of recruiting budgets:six. You may be charged for all eight.
1. Unlimited recruiting hours. The recruiting price you- Or, let's say two of ten people are scheduled. That
are quoted is the price you will pay, regardless of thedoesn't mean there is enough budget to recruit eight
project's difficulty.more. Depending on how many hours were used to
2. Fixed number of recruiting hours. Your recruitingrecruit the two people, you may not have enough
budget buys a predetermined "block" of hours.budget to continue. The time it takes to recruit one
Regardless of the type of budget quoted, ourperson, or the recruit-per-hour, usually determines the
suggestion is that researchers should alwaysremaining budget.
approach recruiting budgets as though there are aThe point is this. A recruiting budget is not a
fixed number of recruiting hours. Here's how to do it,guarantee that a project is doable. Many recruiting
and why.shops will charge you for the time invested to
Step 1: Remember that recruiting budgets arerecruit, regardless of the number of respondents
exhaustiblescheduled or interviewed.
The clock is always running. There is always a limit toStep 5: Avoid budgeting mistakes
the amount of work your budget buys. Even whenHere are some tips to help you avoid budgeting
your recruiting budget is quoted as "unlimited hours,"mistakes:
recruiting shops may ask for more money when the- Be cautious of recruiters who give prices merely to
incidence is significantly lower than anticipated, orbe comparable with other suppliers. Firms like these
when they're asked to perform tasks that weren'tmay be planning to ask for more money--or
covered in their bid.relaxations to the specs--once the project is
Step 2: Determine the pool of recruiting hoursunderway.
The next step to avoiding recruiting budget mistakes- Welcome recruiters who discuss problem areas with
is to determine how many hours your budgetyou before your project begins. They are an asset
includes. Divide the estimated recruiting budget byto you and your research. Look for these suppliers.
the supplier's hourly recruiting fee (you'll have to ask,Listen to their industry experience.
but figure on $35-$50 per hour depending on the- Don't be surprised if a recruiter declines your
market). Subtract about four hours per group of 12project. First-rate recruiters aren't worried about
for confirmation activities--they're part of yourdeclining a project that is beyond their capabilities.
budget, too. What's left is the pool of recruiting hoursYour satisfaction and their reputation are more
available for your project.important than making a quick buck.
Step 3: Keep track of the hours- If a supplier declines your project, ask why. Quality
Once you have established the amount of work yourrecruiting shops aren't afraid to be honest. They may
budget will support, keep close watch on thehave doubts about your project that you should
recruiting hours. Ask the recruiting firm to include inknow about.
their daily reports the number of hours used. (What