Recruiting with an ROI in 2024 - Metrics to know.
Recruiting is an expensive function within any business. With that, it must be handled with intention; or else resources will be wasted away, and it will happen very quickly.
We're talking about thousands of dollars wasted on recruiting bills, hours of opportunity costs with your time that could be generating revenue or driving your business plans forward, and/or vacant roles that are sitting open instead of generating the value you need in your business.
If I were determining ROI for my recruitment processes in my business for 2024, I'd be evaluating these 6 metrics that a lot of other leaders ignore. Shall we?
6 steps to evaluating ROI in your Recruiting Process:
What revenue, cost savings, and/or liability protection does this vacant role generate in your business?
What is your average time to fill for a position like this?
What revenue, cost savings, and/or liability are you missing out on from this role while you're working on filling it?
What is YOUR opportunity cost if you decide to allocate your time to recruiting, instead of focusing on your primary function?
What would it cost, and how long would it take for a trained recruiter to handle this recruiting process for you instead, so you wouldn't have to miss out on your opportunity cost (above)?
Does the cost of running the recruitment yourself offset the cost of having a trained recruiter take it off your plate? Ie: If you focused on your role, could you generate more value for the business than it's costing to outsource the recruitment function?
If you’re wanting to answer this question for yourself, I challenge you to identify at what point that equation makes sense, and begin evaluating options with trained experts. The other cool part about this, is that it applies to several other functions within your business.
At Business Casual, we have hourly, retained, and fully contingent recruiting models that support clients in coming up with solutions that make sense in their equation. Learn more about them here.
That's all there is to it. If you've pulled these numbers and it makes more sense to keep the function in house, you now know that you've got an ROI in your recruiting process in 2024.
Cheers to that!