The use of HR tools for recruitment has proven its worth by speeding up the recruiting process. However, judging whether the candidate shortlisted is the right choice depends on a number of factors, with the return on investments being one of them.
You can find out if these HR Analytics tools justify your ROI through the following factors:
Efficiency in Talent Acquisition
Hiring experienced or talented employees is a task that needs more of your focus along with a keen sense of reading people through their knowledge or their past experience and recommendations. The need for HR tools has never been more in demand as it is now with an increasing competition in almost every field. The more efficient your acquired employee is, the higher your ROI.
The HR Analytics tool helps by sifting through countless profiles that match the specifications or requirements that your company is on the lookout for to fill a certain position, and saves notable expenses that would otherwise be spent in carrying out these tasks.
Output checks out against time and money invested
Employee cost covers more than just a monthly salary paid to the employees. A day’s work, even from a single employee, brings some revenue to the company that can very well increase or reduce the total company cost. If the employee added to your workforce fails to do justice to the money spent in paying his or her salary, you may as well consider taking the required measures to cut cost or justify the investment made.
The best way to justify this is by observing to see if the output gathered checks out against the time and money invested.
Stability in the hiring and exit process
Is your hiring process affected every year with employees leaving the company or being fired? Employing people that can prove to be assets to your company needs months of planning along with meeting a substantial number of people who seem like great potentials before deciding on one. However, the process of narrowing down of the candidates to a choicest few becomes easier with HR tools as compared to going through various platforms that could have a list of candidates suitable for the kind of role your company needs. Another factor that impacts the not only your hiring process but also the company’s stability overall is the number of people exiting the company every year.
Any instability in the balance between recruitment and exits can greatly impact the company negatively, thus affecting the ROI.
Substantial increase in company revenue
Comparing the revenue of a company before and after a particular recruitment can help you gauge the difference and figure out if the employee has indeed been an asset to the company so far. A substantial or consistent increase in the revenue is all that you need to justify the decision of recruiting the individual with the help of the HR Analytics tools your company favors.
The above-mentioned factors give a gist of things you can take into consideration when figuring out the profits your firm incurred.