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Saturday, October 13, 2012

Calculating the ROI of Recruitment Software

By Jane Clements


Technical solutions implemented by recruitment firms are playing larger, more important roles in the overall recruitment process. It is not a surprise to learn that boardroom company management, especially those that don't continually conduct hands on collusion in the daily grind at the recruitment agency, are turning their eye on the recruitment software as recruiters depend on it to perform front-end activities that are significant to the hiring process but can be completely automated.

The economy has gotten most businesses in a tight fix. They try to keep themselves afloat while scrambling for the best talent who can fulfil their organization's goals. Surprisingly, even with candidates becoming more educated, there is a gigantic absence of employees who have the abilities that enterprises are looking for, prompting a big competition in the job market for employers and recruiters. Nonetheless, you know they can't just make a mad dash for the best staff. This will only lead directly to bad decisions by the hiring department and less-than-satisfied staff who, disappointingly, can't deliver.

While the recruiter understands the significance of using recruitment software primarily based on his experience, the executive requires facts to buttress the argument for it. After all, a recruitment database for a recruiting agency is a significant investment. It is like land, gold or stocks for every other financier. The better you invest in software, the more that you will gain. There are several factors that influence the return on investment (ROI) of this kind of software, including the following:

- It increases the effectiveness of each recruiter by automating ordinary jobs such as filing and organizing records, writing and sending regular e-mails and scheduling correspondences. In this manner, recruiters can spend some more time on more meaningful jobs.

- It performs monotonous activities, for example sorting CVs, which often takes a few days for human recruiters to do. This means the utilisation of technology can simply decrease the time-to-hire and cost-per-hire metrics employed in calculating recruitment software ROI.

- It provides an algorithm that helps recruiters create pre-hiring assessments to reduce the chances of hiring candidates who are less qualified and let recruiters focus on building good applicant relations, thus contributing to the increase of quality-of-hire.

- It minimizes, if not completely eliminates, the use of paper and manual labour, hence decreasing overhead costs.

The most effective way to work out your ROI is to divide the profits by the final cost of investment. Naturally, there are other factors that might affect this number, but there are many online ROI calculators that you can use at no cost at all. Seeing the numbers is simpler for the higher ups to have a quick look at the bigger picture and gauge the value of recruitment software for your firm.




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