What is your current cost per hire? Do you even really know? Most organizations have some sense of this number, but I find that it’s never really the real number.
That’s a problem because when you’re building an ROI model for technology, you really need all costs involved.
Why? Well, without stating the obvious, we buy technology on a few promises. The technology will make us more efficient in our hiring, saving us resources; the technology will help us hire higher quality, which will lift our productivity; the technology will give us more capacity, allowing us to hire faster. Cheaper, faster, better.
What is the return on investment in high-volume hiring tech?
We have some issues with high-volume hiring. When you are hiring hundreds and thousands of people per month, as humans, we fail in some major areas:
- We do not have the capacity to engage with every hourly applicant immediately, so we spend all this money and resources to get someone to apply, but by the time we are able to get to them, they are most likely gone.
- Our conversion from interest to applicant to hire is pretty crappy. This is a combination of immediacy and our lack of ability to elegantly offer an on-demand scheduling component to applicants where they feel in control of the process.
- Once we have the full application we allow too much slack in the process from screen to interview. We still allow hiring managers too much freedom in determining the timing of the next steps, and we lose great hires to competition willing to move faster.
This awareness of how we currently hire high-volume is critical to understanding the ROI of high-volume hiring technology.
The ROI of high-volume hiring tech might be the highest of all recruiting technology!
On average, we might convert about 10% of our hourly candidates from interest to application. The first factor in determining a high ROI around high-volume hiring technology would be how much higher our conversion would be if we use conversational AI to engage every candidate immediately. If we go from 10% to 20%, you will have double the amount of candidates you have! This gives you more candidates, more quality, and more choices.
Once you add in the ability of candidates to self-schedule their own interview, you again raise the number of candidates who will make it to the end of your process and deliver a better candidate experience, as they feel engaged and informed on what’s happening. You have eliminated the black hole of applying in their eyes.
There is a simple path to high ROI when it comes to hiring technology. You spend a ton of money and resources to ensure you fill the top of your hiring funnel with candidates. Every single one of those candidates that doesn’t convert is a burn of resources. Your goal is to burn as few of your resources as possible, so you have to raise your conversion of applicants along your funnel.
We live in a world of instant gratification.
I want a great coffee, and I want it now. I want to watch the most recent movie, and I want to stream it on my phone and on my train ride home. I want those new shoes, and I want them delivered by tomorrow morning to my feet! I want to change jobs, and I want to change jobs now!
We do some amazing things as humans. We make candidates feel wanted and desired, and there is nothing more powerful in the world.
The problem is we can’t scale ourselves to make all candidates feel wanted and desired. High-volume hiring technology, built on conversational AI, can help us scale ourselves. That is a giant ROI when it comes to hiring:
More quality candidates, faster. Minutes and hours, not days and weeks.
The ROI is so unfathomably high that it's almost immeasurable — but so many global organizations are actually measuring it, and the data is real:
- How Great Wolf Lodge’s Thoughtful Recruiting Automation Helps Them Connect With Gen-Z — and Employees
- Regis Corporation Family of Salon Brands Recruits in a High-Volume Structure, Without a Single Recruiter
- General Motors is transforming its business — and how it hires. Here’s how they’re doing it.
- Check your organizations potential ROI with our calculator.
If you missed the previous part, the new way to treat candidates — not like customers — is here.
Or start over at the beginning, and unlock a better candidate experience with speed.