Tuesday, October 16, 2012

Working out the ROI of Recruitment Software

By Jane Clements


Technical solutions implemented by recruitment firms are playing larger, more significant roles in the overall recruitment process. It's not much of a surprise to learn that boardroom managers, especially those who do not frequently 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 important to the recruitment process but can be wholly automated.

The economy has gotten most companies in a tight fix. They fight to keep themselves afloat while scrambling for the best talent who can fulfil their organization's goals. Incredibly, even with people becoming more educated, there is a huge lack of employees who have got the talent that businesses are trying to find, prompting a huge competition in the job market for companies and recruiters. But you know they can not simply make a crazy dash for the best staff. This can only lead straight to bad decisions by the hiring department and less-than-satisfied staff who, disappointingly, cannot deliver.

While the recruiter understands the importance of using recruitment software primarily based on his experience, the executive needs facts and figures to bolster 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 each other financier. The better you invest in software, the more you will gain. There are many factors that influence the return on investment (ROI) of this type of software, including the following:

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

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

- It provides a routine that helps recruiters create pre-hiring assessments to reduce the prospects of hiring applicants who are less qualified and let recruiters focus upon building good candidate relations, thereby contributing to the increase of quality-of-hire.

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

The easiest way to calculate your ROI is to divide the profits by the final cost of investment. Of course, there are more factors that may have an impact on this number, but there are a few online ROI calculators you can use at no charge at all. Seeing the numbers is less complicated for the higher ups to have a quick look at the larger picture and assess the value of recruitment software for your firm.




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1 comment:

  1. Recruitment Software

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