Employers are constantly searching for ways to get the most out of their hiring efforts. After all, everyone wants their investments to be efficient as possible. That’s why we’re going to look at tactics you can use to improve your recruitment ROI.
Aim for Retention
Recruitment is a costly endeavor. According to Zippia, a vacancy costs an employer $98 per day it takes to fill. That means one of the best ways to improve recruitment ROI is to retain employees for as long as possible. Simply put, the longer an employee stays with a company, the more cost-effective their recruitment.
And retention starts at recruitment.
So, endeavor to build a consistent interview process. Consistency will help align hiring managers and everyone else involved in hiring new talent on what’s expected of them as well as the candidates.
Additionally, make building a great candidate experience priority. A positive impression during hiring will carry over and influence their impression of their workplace.
Then there’s the matter of onboarding. This is a sensitive time as a new hire eases into their role, and it will influence their perception of the workplace throughout their time there. So, maintaining a strong communication cadence during onboarding is vital. It builds stability and shows new hires that they are valued by their employer.
Build With Accessibility
Every successful recruitment process needs access to a healthy candidate pipeline. To this end, we’ll need to look at accessibility. No amount of candidate sourcing will help you find your ideal candidate if they can’t engage in your hiring process. Make sure you have the right tools to make this possible.
For example, tools such as on-demand phone interviews will make your interview process accessible to nearly everyone. And we’re not exaggerating here. The Pew Research Center has found that 97% of Americans today own some form of a cell phone.
Avoid solutions such as video interviews requiring candidates to possess a camera, microphone, and an appropriate area to interview. Otherwise, you immediately alienate the candidates that don’t.
Assess Adverse Impact
According to research from McKinsey, the most diverse companies consistently outperform their less diverse counterparts. What’s more, a 2018 survey found that these companies also saw a greater portion of revenue from innovation by 45% compared to less diverse companies only seeing only 26%. Both of these studies tell us the same thing — diversity plays a major role in success. As such, a fair and equitable hiring process creates a greater recruitment ROI.
To build equity into your own practices, you’ll need to assess for adverse impact. Adverse impact in hiring are practices that create unfair disadvantages for protected groups. This can stem from inaccessible hiring practices or unconscious bias from recruiters. Both can be countered by adopting tools that offer both accessibilities while mitigating bias.
Track the Right Data
We’re truly living in the age of information and the right data will take you far. Here are some key data points to consider when building a hiring process for better ROI.
- Time-to-Hire - Time-to-hire is the amount of time it takes to bring a new hire from the moment you post a vacancy to the time it takes to hire a new employee. Tracking this data point will help you indicate opportunities to speed up your hiring process.
- Cost-per-hire - An important metric on its own, cost-per-hire can help you examine how you are investing your hiring budget, and if it’s performing as it should.
- Quality-of-hire - When we’re looking at ROI on recruitment, we’re looking for getting the most out of hire. Tracking quality-of-hire will help determine if your recruiters are hiring the candidates that bring the most value to the company.
- Skills Gap - A skill gap analysis allows you to examine the skills the company needs today and in the future. Recognizing these gaps will allow you to begin your recruitment even before the need arises.