Understanding and manipulating your talent acquisition funnel is one of the most important tasks for HR professionals. However, it can be very hard to see where ROI is coming from currently, and where it can come in the future.
While it may not be intuitive at first, you can actually assign value to each action in your hiring funnel that a candidate takes by thinking through the cost/hire of a given role, and how each action contributes to a hire. For example, if your cost/hire is $1,000, and you need 100 applicants to get 10 interviewees and 1 hire, then each applicant is worth around $1,000/100 = $10 to you. Make sense?
How much value does changing our site visitor to applicant conversion rate create? What about changing the percent of people who make it through the applicant process? We put together this spreadsheet so that you can better understand the value in changing the conversion rates for the key parts of your hiring funnel.
It’s our hope that you can use this to understand the potential outcomes of your current projects. Looking at a new ATS? Run a sensitivity analysis of changing the number of people who complete application processes. You may find that with very conservative assumptions, you can build a strong business case. Looking at building out your employer branding content? See what a 2% change in your top of funnel conversion rates will yield.
You can download the calculator here.