How to determine recruitment ROI to improve hiring Strategy?

We know trends come as quickly as they go – they are not tangible and leave no real result. There is no guarantee that the trends making the headlines today will still be as effective when the winds blow, or the tides turn.

But strategies are foundational.

Strategies hold structures. They allow us to build and leave room for us to dismantle and restructure as we go. And that’s why companies with an improved hiring strategy enjoy better recruitment ROI and are at the forefront of the industry bandwagon.

Determining your company’s recruitment ROI involves working with a practical – tried & tested – hiring strategy. But improving your company’s recruitment ROI requires the technical know-how to integrate hiring trends in line with shifting tides; or better still, the assistance of a top recruitment agency in India.

So, before you start posting your job ads all over the place trying to spare your company the $500 expense it incurs each day it leaves a position vacant, you might want to take a step back and reimagine the time-cost tradeoff optimization of making a wrong hire.

In the meantime, let’s look at the defining values behind an effective hiring strategy.

Job Ads ROI

Steve Jobs once said, ‘if you define the problem correctly, you almost have the solution.’ And today, Apple is valued at $2.08 Trillion.

Let’s go with a slight rephrase ‘if you define the position correctly, you almost have the right candidate.’

The way you define your recruitment ads says a lot about your potential return on investment. Whether a specific candidate will benefit your bottom line or negatively impact it is primarily influenced by how your ad defines the position and the time/cost of screening thousands of irrelevant CVs.

Firms skilled at recruiting top talents, know how to put out ads that do the heavy lifting. These recruitment ads are direct, employee-centric, culturally sound and somehow, are intuitively found by candidates with the required expertise.

But surprisingly, very few firms dare to include job ad ROI in their recruitment metrics, mainly because it’s pretty hard to translate into monetary figures. That’s no excuse! You get a bang for your bucks by calculating the expense of creating a well-defined job ad and including the cost in your overall recruitment ROI.

What Are The Metrics Saying?

You can use a well-defined job ad to keep experienced candidates knocking. But you need active and well-optimized recruitment metrics to know who is worth opening the door to.

Recruitment metrics comprise; the time to hire, cost per hire, quality of hire, and candidate experience. What a fully optimized recruitment metric does is quantify your ROI. That means;

• It helps you incorporate estimable data,
• Calculate the anticipated cost and benefit for each position,
• Gives you a profound assessment of where your business is at; and
• Help you make effective use of your recruitment budget.

However, while your recruitment metrics are vital to determining recruitment ROI, these metrics in themselves do not make a recruitment strategy. But tactical use of the data supports a deluge of intelligent decisions.

Recruiters or hiring managers with the correct data at their disposal don’t need to base their hiring decision on intuition or unfiltered ideas because they’ve got a toolbox to work with.

Onboarding

You might have all the data ready in hand, weigh as many elements as possible, and tell yourself in confidence that you’ve finally nailed it – I will hire a great employee.

But if you’ve heard this famous Les Brown quote, "you don’t have to be great to get started, but you have to get started to be great’‘, then you will know that hiring is one part of the divide; onboarding is another.

There is an expensive time gap between hiring an employee and getting them up to speed. Factors that will influence your hiring strategy and overall recruitment ROI when onboarding new employees include;

• Cost and time for training,
• Assistance from existing staff,
• Time to become a cultural fit; and
• effect on overall productivity.

Calculating direct onboarding cost {training} is manageable and measurable. But getting an estimable grip of factors like assistance from existing staff and effect on overall productivity is key to creating a hiring strategy that tickles your pickle and doubles your recruitment ROI.

Now that you know the defining values you need to determine recruitment ROI and improve hiring strategy, let’s look at a few steps to improve your recruitment ROI.

Read more...

I am a Digital Marketer