Welcome to my TA blog series! Over the next several weeks, I'll share some of my TA-related best practices and tips. If you missed the first posts in my series, you can go back and read it here:
- Top TA Strategies Every Modern Recruiting Team Should Use!
- Recruitment Marketing for TA Teams on a Budget
- 3 Things World-Class Talent Acquisition Leaders Do Differently
There are thousands of recruiting technology products on the market. I'm a super geek about all of the technology and love most of it, but, quite frankly, some of the recruiting tech on the market is a nice-to-have, and some of it is a must-have!
When we talk about investing in recruiting technology, especially for most companies coming out of a pandemic, we better first be speaking the language of business. If you plan to go to the CFO without a great business case that shows a tremendous return on investment, you might as well not even try!
The tricky part about ROI and recruiting technology is that we can't talk a dollar-for-dollar return. Meaning, if you spend $10,000 on a recruiting technology product, it better return more than $10,000. But, what is that return we should be looking to get? Three times, five times, ten times our investment?
It's hard to say because each tech actually brings a different level of ROI. What I try to do is look at what my current recruiting process costs me now without this technology, and how much less I'll spend with the technology, or how many more great hires I'll get because of it.
Since we all know our average cost of hire (right?), we can then back into some dollar figures that our finance folks will understand. "I'm going to use this technology to hire more 'X-type of employees.' Currently, these employees cost us $X per hire. So, adding this tech will give us more of these employees for less money." Then, it's up to us to prove that out!
What we don't ever want to do is give classic recruiting business cases like, "Well, if it saves us one headhunting fee, it pays for itself!" That kind of business logic doesn't produce high confidence with our finance peers. They want to see multiples of savings. "It currently costs us $250,000 in third-party search fees. This technology costs $25,000, and we estimate it will reduce our search spend by 40%. That is a savings of $75,000 per year!"
So, what is the highest ROI recruiting technology on the planet?
In my opinion, that technology is the one that will give you the most high-quality hires. I would say for the vast majority of organizations in every industry and every size, those hires are employee referrals. So, you will need technology that seamlessly gives you more employee referrals.
Employee Referral Automation is the highest ROI on the planet!
The problem is we feel like right now we already get employee referrals for free, or nearly free, without any investment, so why would we ever spend additional money on this type of technology? That's an easy answer. If you can get more of your highest-quality hires, it's worth every penny of investment.
Employee Referral Technology allows your organization to share openings with your current employees so they can easily share these openings with their professional and social networks. The technology will then track these shares so you can understand where the referrals are coming from, and many organizations will set up competitions and reward systems to encourage even more of these shares.
An average organization hires anywhere from 20-40% of their hires through some sort of employee referral. The more efficient and quick you can make this process, the more of these hires you'll make.
The organizations that I've seen implement employee referral automation have had 20% more employee referral hires in year one. On top of that, that was done by turning on the technology and eliminating employee referral hiring bonuses which, in most organizations, actually made it a cost-neutral technology to implement!
So, wait, I can get more of my best hires and it won't cost me anything!?! Yep! That's why I believe it's the highest recruiting technology ROI on the planet!
Saba's Tip for Strengthening Your Recruiting Approach
Recruiters have always operated in a world of high expectations but COVID-19 has changed nearly every aspect of hiring, making it even more important to work smarter, not harder.
Streamline your hiring process and build a clearer roadmap for success with The Recruiter's Checklist. This step-by-step framework will guide you to create a strategic recruiting plan that suits your organization's specific needs.