How to improve ROI in recruiting

How to improve ROI in recruiting

One of the most difficult challenges for HR is to demonstrate that they are actively contributing to the growth of Employer Branding.

In order to raise the level of company performance, it is necessary to invest in the planning of recruiting campaigns, or better still, Talent Acquisition campaigns, the aim of which is not just to fill a vacancy, but rather to acquire talent in the medium to long term.

It is clear that the effective recruitment of a candidate is not enough to sanction the success of the campaign, but it is necessary to determine the added value and the benefit of the recruitment for the company, measurable in terms of ROI.

What is meant by ROI?

ROI is the acronym by which we refer to return on investment (ROI). It is a term borrowed from marketing and is applied in all those areas where you want to calculate the effectiveness of an investment.


This is a value used to define the relationship between certain actions carried out in the recruiting process and their success. This indicator must be considered as the result of a cost-benefit analysis in which several variables intervene.

How and why to plan a correct recruitment strategy

In the search and selection process, several aspects come into play that influence the success (or otherwise) of the recruitment. It is important to remember, however, that successful recruitment is not synonymous with a positive ROI. Sometimes the selection of a candidate comes from the direct, and not always satisfactory, choice of the recruiter who is guided by instinct and experience. Other times the selection does not take place at all because there are not enough candidates or they are not in line with the job description.

In these cases, it means that the actions and investments have not worked and therefore, in order to track down new talent and improve ROI, it is necessary to think about a new recruitment strategy that takes into account various aspects.

Writing a job ad correctly

Before starting the search and selection process and writing a job ad correctly, the recruiter needs to know what tasks and activities will need to be performed, what kind of skills to look for, what the company’s requirements are and what needs of the candidate can be met.

Intercepting the right offline and online channels

A good recruiter must know how to take care of relationships with candidates (even potential ones), because the candidate could be hiding anywhere: among the company’s employees, in the CV database, on social networks. This is why conveying a transparent, clear and positive image of life within the company is very important.

Integrate an ATS

Recruiting is a fluid process that is constantly evolving, so you need to know how to scale and plan your strategy for each selection. Choosing a smart ATS like In-recruiting has the advantage of automating some aspects of the pre-selection process for better matching between candidate and job announcement. From this point of view, the administration of questionnaires, the possibility to carry out video-interviews and the management of CVs through a database will allow recruiters to filter the amount of applications and evaluate those most in line with the requirements sought.

Follow key KPI metrics

To determine what kind of budget to invest in the search and selection process, an analysis of time, cost and other variables (KPIs) must be performed. A data-driven approach is the best way to allow the recruiter to make decisions that are backed by data.

ROI: How to measure the success of a search and selection strategy

To understand if the recruitment campaign has led to a positive ROI, you need to analyze a few factors:

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1.Initial costs to get the hiring process started (e.g., related to posting the job ad)
2.Estimated time to spend on writing the job description, monitoring the posting on multiple platforms, viewing CVs and interviewing candidates
3.Predictive assessment of performance in terms of job performance and team fit (comparison must be made with employees who hold the same job title and have the same level of experience)
4.Time spent on the selection process, specifically the amount of time each resource involved in the selection process, took time away from his or her primary job description
5.Post-hire costs to provide the new hire with work tools
6.Churn rate and Retention. Leaving the workplace a few months after hiring profoundly affects ROI, in terms of time and cost. In this sense, it is necessary to plan recruiting campaigns that focus on resource retention.

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