How Can You Increase Your Recruiting Return of Investment?

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photo by People Creations

Return of Investment or short “ROI” shows the ratio between net income and investment cost. Calculating the recruitment ROI for certain hiring strategies will help you allocate your efforts and money in a way that works best for your company. In the long run, it will help you save valuable time and funds for your entire hiring process.

How to measure Recruiting ROI?

The recruitment metrics provide insights into how effective your recruiting efforts are. 

Metrics alone do not make a recruiting strategy, but their efficient and tactical use can lead to an effective recruitment process. 

Here are the key metrics to consider when calculating your recruiting ROI:

  • Time – the amount of time you spend on hiring new personnel measured from the moment of posting the job ad until the onboarding process is finished.
  • Cost – the amount of money you spend for each hire.
  • Quality – this is probably the most important metric of all when it comes to recruiting. Finding top-quality workers is the most important part of the whole recruitment process. Having low-quality hires can affect the time and cost of the recruitment process since you will have to spend more on new recruits.
  • Applicant experience – providing a quality experience for your potential employees can make all the difference for your company branding. Keep in mind that the hiring process is a two-way street, your favorite candidates may not accept to work for you if you leave a bad impression.

Tips to increase recruiting ROI

Here are a few guidelines to help you increase your recruiting ROI and optimize the hiring process:

  • Online (remote) hiring

This is probably the most efficient method for hiring the right candidate. The benefits of it may be astonishing. Just think about it, some of the best candidates may not live nearby, and online hiring breaks the barrier, not just for your company, but also for the candidates. Most people don’t like to travel hundreds of miles simply for an interview that may or may not get them the job they seek. Traveling costs are also eliminated this way.

  • Automating the recruitment processes

Thanks to modern IT solutions, some parts of the recruitment process don’t need to be done manually. Screening, data collection, and interview scheduling can now be done with numerous software tools, thus saving countless hours that a regular person will otherwise have to spend.

With the automation of these processes, your HR personnel can focus on more important tasks that computers still cannot perform well.

  • Used saved data

Sometimes a quality candidate may not make the cut for your current hire, but it doesn’t mean that you will not require his service in the near future. When a new spot is vacant, having a pool of processed candidates can help save time and effort instead of starting the whole hiring process all over again.

  • Implement mobile hiring

New generations these days are easiest to find through mobile devices. Putting a priority on mobile hiring means using hiring tools and processes with the help of mobile devices, namely smartphones.

Imagine how much time can be saved for your business and your future employees if they can apply for your new job post with just a few clicks on their favorite toy.

  • Improve applicant experience

As mentioned previously, offering a quality hiring experience for your future employees can make all the difference. It is not a rare issue when a strong candidate turns down a job offer after an unpleasant experience in the hiring process. Try to abolish all unnecessary paperwork, expenses, and time that cause many headaches both for your HR personnel and your future employees. The simpler the process the better the experience.