Assessing or quantifying the returns on the resources used in the professional recruitment process, or, calculating the return on investment (ROI) on recruitment is a complicated task for any organization.
Indeed, it is difficult to judge the success of a recruitment processes.
Instead, recruitment is many times the one activity that continues in an organization without anyone ever realizing its worth or measuring its impact on the business’s bottom line.
According to many surveys, more than 40 % of organizations do not prepare or produce any kind of documents or reports on their recruitment processes, and there is no accountability of the HR department for the costs incurred and the opportunities missed.
With the increasing strategic focus on the human resources, more and more organizations are adopting one or the other way for calculating the ROI on its recruitments. Many organizations are examining their HR functions and processes and are trying to quantify their results and returns.
At Premier Search, Inc. a recruitment professional or manager can calculate and maximize the return on investments on its organization’s recruitment by
• Clear definition of the results to be achieved from recruitment.
• Developing methods and ways measuring the results like the time – to – hire, cost-Per-Hire and effectiveness of the recruitment source etc.
• Estimating the costs associated with the recruitment project
• Estimating the tangible and intangible benefits to the organization including the payback period of the recruitments.
• Providing and ensuring proper training and development of the recruitment professionals.
Assessing the ROI on recruitments is essential for an organization to strengthen its recruitment processes, improving its recruitment function and to build a strategic human resource advantage moving forward.
I am Bernie Reifkind CEO of Premier Search, Inc. (800) 801-1400.