Human resources is sometimes considered a tricky industry when it comes to return on investment (ROI). It is often difficult to obtain quantifiable data in relation to the work being carried out given that typically the HR department does not generate any direct income (mostly indirect). Investments in recruitment processes often make the executives quite nervous, as projects and programs often do not produce tangible short-term results. While the idea of a “more diverse workplace” or “greater employee satisfaction” seems like a good thing, the question remains whether this translates directly into a significant increase in revenue or improved productivity. Nevertheless, calculating return on investment offers HR professionals an excellent way to demonstrate the value of the profession and the work. In this blog we will provide some examples on how you can increase the ROI of your recruitment processes today.
Return on recruitment investment, what factors do you take into account?
Three quantifiable factors that are essential to get insights into the ROI on your recruitment process are: number of quality hires, time to hire and cost savings. Percentages and also financial amounts can be added for all these factors. Insight into the above will be of enormous added value in mapping out the total return of investments on your recruitment processes and will contribute in lowering the existing doubts about HR investments.
Quantifying quality hires
How do you, as HR responsible, express the number of quality hires in numbers? First, it’s essential to determine what a quality hire is and how it compares to a miss-hire. If you have determined this you can make a proper comparison with your previous hires that did not meet the standard that you have determined beforehand. You can take the costs of the recruitment process per candidate and the costs of a mishire into account to come to a financially quantifiable measure.
Quantifying time to hire.
The time and resources it takes to get to quality hires is another useful recruitment metric. The shorter this process is and the fewer candidates you have to talk to get to a quality hire, the higher the ROI.
Cost savings on the recruitment process
By focusing on the above you can make a big profit on your investment in the recruitment process. These cost savings can be quantified per hire for your current recruitment process, but also after changing certain steps. If you make several changes to your recruitment process it is best to do this step by step so you can determine the ROI of each change you implement.
How does BrainsFirst contribute to an increase in the ROI on the recruitment process of their clients?
BrainsFirst has helped multiple organizations to improve the ROI of their recruitment processes. By combining cutting edge neuroscience, gamification and tailored selection parameters we:
- Increased the number of ‘quality hires by up to 44% across more than 15 different clients and different vacancies. In addition, an increase of up to 12% in a-typical* hires who perform well in the role.
- Reduced the time to hire with 20%.
- Achieved cost savings of around 20% on the recruitment process for many of our clients by increasing both the effectiveness and efficiency of the entire process.
- Achieved a 91% reduction in unconscious bias.
All this is possible because of the 100% remote pre-selection tool: the NeurOlympics.
*We managed to increase the acceptance rate from 2 to 12 percent. The unique application of gamified neuroscience allowed the client to assess thousands of applicants online. The selected candidates were increasingly found to have a-typical backgrounds, but consistently add tremendous value.