How do you evaluate the return on investment of your recruiting efforts and activities?

1 Define your goals and metrics

To measure the ROI of your recruiting efforts and activities, it is important to define your goals and metrics. Consider how your recruiting strategy aligns with your business objectives and needs, as well as the key indicators of success and quality for your hiring process. Common metrics to track include cost per hire, time to hire, quality of hire, hiring source, and candidate experience. Cost per hire is calculated by dividing the total amount of money spent on recruiting by the number of hires made in a given period. Time to hire measures the average number of days from when a job opening is posted to when a candidate is hired. Quality of hire evaluates how well a new hire meets or exceeds the expectations and requirements of the role and organization. Hiring source tracks the channel or method through which a candidate was attracted and applied for the job. Lastly, candidate experience assesses the perception and satisfaction of candidates throughout the hiring process.

2 Collect and analyze data

The next step is to collect and analyze data on your recruiting efforts and activities. To do this, you can utilize an Applicant Tracking System (ATS) to manage and track candidates’ applications, resumes, interviews, and feedback. A Recruitment Marketing Platform can help you create and distribute your employer brand and job ads across different channels. Surveys and feedback forms provide a way to collect feedback from candidates, hiring managers, and new hires on their experience with the hiring process. Lastly, analytics and reports are useful for visualizing data metrics to identify trends, patterns, and insights.

3 Compare and benchmark

The third step is to compare and benchmark your data and metrics against your goals and industry standards. Evaluate how your recruiting efforts and activities measure up to expectations and targets, as well as competitors and peers in the industry. Are there any gaps or areas of improvement that you need to address? To do this, you can use internal data such as your own historical data and trends on recruiting performance and outcomes. Additionally, you can refer to external sources like industry reports, surveys, studies, or platforms that provide benchmarks and averages for your sector and region. Best practices from leading organizations or experts can also showcase examples of excellence in recruiting.

4 Evaluate and optimize

Evaluating and optimizing your recruiting efforts and activities is the final step. Analyze the strengths and weaknesses of your recruiting process, as well as the opportunities and threats you face. Identify actions and recommendations that can improve your recruiting ROI. Streamline your process, enhance your employer brand, diversify your hiring sources, improve candidate experience, and focus on quality of hire to optimize your recruiting efforts. Doing so can increase efficiency, effectiveness, and quality of hire, ultimately helping your business grow and succeed.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?