How to Measure HR Technology ROI
How to Measure HR Technology ROI
by Modern Hire on November 9,2018
2 min read
When you?re talking budget and modern hiring technology with your TA leaders, HR technology ROI will come up. Here are 5 ways you can measure ROI.
Candidate experience is the power topic in TA, and rightly so. In this record-breaking, talent-scarce labor market, you can?t beat a hiring experience that caters to modern candidates for competitive advantage. Still, when you?re talking budget and modern hiring technology with your leaders, HR technology ROI will come up. Often. Fact is, the decision to implement a new or better interviewing solution usually comes down to cost, value and your company?s bottom line.
Here are five areas where you can measure HR Technology ROI
(in addition to the most apparent one: travel time and cost savings)
Accelerating Speed to Hire by up to 14 Days
What could your organization gain by shaving two weeks from your hiring cycle? Some interviewing platforms accelerate speed to hire this significantly by
- reducing delays between application and first contact with a recruiter
- eliminating delays in scheduling interviews
- reducing the time needed to pre-qualify large pools of candidates
- streamlining hiring by integrating interviews and validated assessments
You can measure the business value of faster speed to hire in terms of less productivity lost due to unfilled positions, and less time spent per hire. There?s also another advantage to a faster hiring process - more opportunities to capture better talent ahead of your competition.
Reducing Your Interview to Hire Ratio by up to 70%
Some online interviewing platforms can reduce your interview to hire ratio by a large margin. Pre-qualifying candidates with on-demand text interviews, and replacing phone screens with on-demand video or voice interviews ensures your TA team is spending more time with qualified candidates. You present a strong slate for hiring managers, and perhaps even have stronger ?runners-up? you may want to recommend for other open positions.
Reducing Your Risk of Poor Hires
The cost of a poor hire can vary greatly, but averages run anywhere from $9,000 to $17,000 per hire. ?Interviewing platforms that integrate multiple types of interviews and validated assessments position your entire hiring team to make smarter hiring decisions.
Increasing Recruiter Efficiency by 30%
Your purpose-built video interviewing solution can automate some of the repetitive tasks recruiters handle daily, like scheduling interviews, and messaging candidates with status updates. What could they do with 30% more time in their day? Shift their attention to creating business value by increasing candidate engagement.
Improving Candidate Advocacy
So, getting back to that candidate experience, which is a competitive advantage in hiring the top candidate. Don't forget about all of the candidates who are not hired! Video interviewing can help create positive impressions of your organization with every candidates, hired or not. Better candidate advocacy can lead to better support for your online employer brand, and even higher sales, which links directly to your bottom line.
Get ROI Help from Your HR Technology Partner
Calculating HR technology ROI isn?t always easy, so don't be shy about asking for assistance. Whether you are just starting to explore video interviewing software, have a trusted partner already or are looking to upgrade, your vendor should be able to help you calculate the ROI of their technology. Measuring the business value of this modern TA strategy will support your continued efforts to make faster, better hires.