Your recruitment ROI: Price Versus Value
Today’s highly competitive business environment means increased emphasis on return on investment across the board—and nowhere is ROI more important than recruitment.
Because it’s an easy metric to measure, there is a tendency to emphasize recruiting costs over recruiting value. This is short-sighted. Putting the best person in place can be worth millions to a company’s bottom-line. Not replacing an executive who doesn’t perform can cost your firm hundreds of thousands of dollars in lost productivity and training.
Recruiting top talent pays extraordinary dividends. It is one reason CEO pay among Fortune 500 companies has soared 60 percent in the past two years. When it comes to building your bench, a strong recruitment effort is just as important as attracting the right CEO. The best news is you don’t have to overspend on salaries or suffer from excessive turnover when your have a powerful recruiting network in place.
Your real ROI
Many companies don’t calculate their recruiting ROI at all. Others look at recruiting costs in a vacuum without analyzing the whole picture. With the stakes so high, it pays to calculate your real recruiting return on investment. This knowledge will help you build long-term referral net-works and build long-term return on investment instead of darting from requisition to requisition.
Here are some things to consider that will help you calculate and improve your recruiting ROI:
Filtering. The linchpin of successful recruiting is filtering. Job boards and company websites cast wide nets that capture people whose only qualification for employment is their availability. A sophisticated service like CPGjobs enables you to filter candidates and quickly focus on those most qualified.
Ripple effect. CPGjobs works on the “referral ripple effect.” Every application is the beginning of a network. They should never be thrown away. That’s why CPGjobs believes in full candidate ownership, which means companies can use any candidate referred by us as long as they want. This brings more candidates back to you, filling your talent pipeline through the power of networking and positive experiences.
Sourcing. With jobs leads coming from multiple sources, it’s essential to know where candidates come from. A candidate who comes to your company website may have first heard about your opening somewhere else. Make sure your hiring system captures the original source of each lead so you can identify what’s working and what’s not.
Referrals. Personal referrals are a primary source of high-quality candidates, but your metrics may not reflect this important resource. What is not measured is not emphasized, so be sure you closely question candidates about personal referrals they’ve received. Remember to ask every candidate for referrals to other candidates so you can extend your referral networks and maximize your recruiting power.
Long-term. Don’t abandon a recruiting resource before it has a chance to work. Recruiting is a long-term process of building your company’s reputation and expanding your talent networks. Automated job boards are little help in this process because they generate unqualified applicants–and more inside work.
Quality. Because CPGjobs is an active service with recruiting outreach and powerful support tools, it produces higher return on your recruiting investment. What good is volume if it only produces more unqualified candidates? It may be harder to measure, but quality is the most important metric there is.
Increased productivity. Too many HR people are tied up doing paperwork instead of building the diverse talent networks their organizations need to compete, HR specialists say. Using CPGjobs to attract, generate and filter candidates is a force multiplier for your talent acquisition teams. We allow you time to focus on what you do best, which is determining what your hiring authorities need and selecting the best candidates to meet their requirements. Bottom line: CPGjobs’s services are built around your ROI. The more you use our service, the greater your return. You pay for only what you need, and if you don’t find the candidate you want, we offer a 100 percent guarantee. The only risk with CPGjobs is not using our services.
Look at value over time and build ROI for the long-term. It’s the best way to measure your recruiting efforts and identify what’s working and what’s not. And in today’s tight job market, policies and programs that promote recruitment and retention are more important than ever.
Michael Carrillo is president of CPGjobs, the CPG industry’s leading candidate recruiting service for HR professionals and employers. You may contact him at Michael@CPGjobs.com or call (626) 535-0143.