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Demonstrating ROI for Recruiting Isn’t Getting Any Easier

abacus-1We are about three quarters of the way through 2015 and at this point, your organization’s focus has likely shifted. For Talent Acquisition leaders, it’s time to ante up, validate your team's performance and sprint for the finish line. Demonstrating recruiting Return-on-Investment (ROI) is guaranteed to get your team noticed, but more importantly, it may (or may not) get you budget dollars for next year.

Trends tell a story, and over the past few years, there has been a consistent trend within the recruiting industry: drive down the cost of talent acquisition while maintaining or even increasing the number of new hires. This stop and go mentality was evident in the fluctuating total number of U.S. jobs added over the course of 2015. However, it was the June 2015 Jobs Report that eluded to a more concerning trend. We saw the lowest labor force participation rate documented since 1977. Meaning, the size of the labor pool has shrunk drastically with 653,000 discouraged workers, or those who simply stopped seeking out employment. 


Recruiters and talent acquisition leaders have voiced concerns over maintaining existing employment levels, but this doesn’t account for ebbs and flows in the company’s future workforce needs, time spent on sourcing difficult-to-fill positions, or attracting remote and/or globally sourced candidates. As we move into the end of the year and get ready for 2016, it's important to stop and take a pulse on your team's recruiting effectiveness.


The Recruiting Metrics that Matter

One important question to ask is whether these future trends will impact your organization’s ability to effectively source, recruit and retain talent. To get to the bottom of this concern, we have to look at a few key areas that can impact recruiting ROI.

In Yoh's eBook, 3 Ways to Ensure ROI on Your Recruiting Efforts, we discuss in great detail the first area to consider when measuring recruiting ROI: metrics. For talent acquisition leaders, it’s imperative to have accurate and consistent metrics to support recruitment ROI. It’s not enough to supply time to offer, interview to offer ratio, and hiring manager satisfaction. Top performing recruiting teams have access to data which drives two to three levels deeper than these top line metrics.  

Analyzing data by job category, geography, or recruitment process steps empowers a recruitment team to identify process efficiency opportunities.

Depending on these performance-based metrics, you might find yourself at a cross roads. For some leaders, this means recognizing the need to improve talent acquisition efforts. For others, it’s simply the desire to understand where your department stacks up against the competition.

In the end, regardless of your motivation for demonstrating ROI, it’s about building the case to further recruiting investments. Both are tough to do – and harder to do without the evidence. Looking at metrics is a great starting point, but is just one of a few key areas to help you really reveal what’s driving your recruiting strategy.

RPO Definition Cost Models & Goals

Andy Roane is the Vice President of Recruitment Process Outsourcing (RPO) for Yoh. Roane brings more than 15 years of human capital industry experience to the role, including six years as Vice President of Operations for PeopleScout, where he led RPO engagements with Fortune 500 companies.  To contact Andy Roane directly, email him at

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