Recruiting as a Business Strategy

Recruitment has evolved from an HR function to a crucial component of the overall business strategy. Forward-thinking organizations are focusing on more automated processes to increase efficiencies, but also expand their talent pools to find more diverse and highly qualified candidates.

In this environment, a data-driven recruitment strategy is a critical competitive advantage for building a workforce that is more aligned with your company's long-term and short-term strategic objectives, improving organizational workflow and efficacy, and strengthening employer branding by increasing awareness and visibility through recruitment marketing.

Demand for skilled and experienced professional workers remains strong. While hiring trends are promising, recruiting new talent is not cheap. Intentionally calculating your total recruitment ROI allows you to consider all expenditures on recruitment, tools, training, onboarding and even the time spent on your endeavors. Focusing on ROI helps improve the entire hiring process, improves diversity and quality of hire, and allows you to shift to subjective, antiquated hiring practices to a more measurable, data-driven hiring approach.

Here are some key takeaways on how you can measure and maximize your recruitment ROI:

• Define what ROI means for your organization.
  While ROI can be defined as the net revenue against investment and cost, what results qualify as good returns will remain subjective to your company. Defining what ROI looks like for your organization helps identify the metrics that matter. For instance, if reducing time to hire is critical to your organization, some essential metrics would include measuring hiring velocity – how much time is spent at each recruitment stage or interviews per hire – and the number of candidates interviewed for each position. These metrics help locate bottlenecks and reduce time spent interviewing irrelevant candidates.
• Develop a data-driven work culture and use data from past campaigns to predict ROI for the upcoming ones.
  Predictive analysis to estimate ROI enables you to compare your plans and determine the ones that best serve your goals.
• Train and support your recruiting teams as they put these changes into practice.
  Invest in valuable resources like Applicant Tracking System (ATS), Recruitment Marketing systems, Candidate Relationship Management (CRM), or Talent Management tools that track metrics automatically.
• Establish a continuous progress review protocol and solve problems on the go.
  The constant review helps you integrate recent market changes into your plans, recognize possible issues in advance, and take corrective action.

Maximize Your Recruitment ROI with LHH

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