Unlike bankers, investors or widget-makers, HR has the unenviable task of measuring humans. Maybe that's why some reports estimate the number of HR teams who can tie talent metrics to the company's overall ROI at less than 50%. 😞
But if you're the type of recruitment leader who wants to drive real change, you'll need some compelling numbers in your back pocket. We're here to help.
Read on for more on WHY you need to know your numbers or click below 👇 for a list of proven ROI formulas.
ROI is your secret weapon for change
The way the world of HR is moving, you're looking at a future packed with discussions (read: polite disagreements) about how to advance your culture, spice up your benefits and bolster your employer brand just to stay in the game.
And numbers are damn compelling.
If you want the buy-in of your C-suite budget-holders, you must be able to assure them they'll be getting that budget back, and then some. But getting that buy-in is just the beginning.
According to Deloitte, 70% of change initiatives fail due to misalignment between the exec team and the frontliners. Yikes.
Like it or not, on the road to becoming the best company ever, there will be times people (possibly even your CEO) question your plan. In these moments, you must be prepared with a strong 'Why', backed up by a strong number. Even if you don't hit that number to the very last decimal point, your goal is to get as close to it as you possibly can — while making the entire company better in the process.
Know your starting point
Before you whip out the calculator, you need to do a little fact finding to get a grasp on what your current numbers are.
Depending on the ROI formula you choose (more on that in our free guide!), you may need plug in any of the following numbers:
- Cost of an agency/external recruiter
- Time spent on hiring activities
- Revenue per employee
- Cost of recruitment marketing
- Cost of job advertising
- Employee retention rates
- Employee turnover rates
- Number of applicants in your talent pool
Once you've gathered up your data, now you can prepare to knock their socks off.
Blow them away
Use the national averages for the above metrics to set yourself some awe-inspiring goals.
Just think how impressed your CEO will be when you tell them you're going to outperform national retention rates by 5%. (If you can grab the stats on your biggest competitor, even better.)
And you'll get mad bonus points if you can tie your new recruitment strategy in with the wider business objectives for increasing employee engagement, productivity, etc. Lay out a recruitment game plan that aligns with the big picture business game plan and it'll be a no-brainer for your executive team.
Make sure you account for any concrete deliverables or important milestones, such as time it takes to migrate from a legacy system (fyi, an awesome ATS can be up and running in a matter of days, not weeks) and the amount of positions to fill before a certain major opening, launch date, etc.
So what are you waiting for? Better hiring starts now!