I feel very strongly when it comes to People professionals using hard core business cases and ROI to demonstrate the value they are bringing to the organization. I think time and again the People Ops function is overlooked despite the obvious benefits we bring to the company. This dynamic exists in part because HR is held to a higher standard due to their status as a cost center.
I’m also a bit of a spreadsheet junky, and so I wanted to share how I’d think about the business case for using a recruiting chatbot in your talent acquisition stack.
Here is the spreadsheet I put together for this exercise (no need for your email, you can just click to download). This spreadsheet contemplates ROI from saving your recruiters' time, as well as decreasing the time to fill for open reqs.
You can manipulate this spreadsheet to reflect your organization's hires per year, recruiter salaries, etc.
The main things we are trying to model are rows 12 and 25, how much our recruiters will save per req, and what our time to fill will look like going forward. The rest of the calculations flow from there and automatically update in the spreadsheet.
First off, time to fill optimization is the largest driver of value when implementing a chatbot. In fact, decreasing time to fill is an amazing way to drive business value for any talent acquisition initiative. In this model we actually took a conservative approach to this equation so that the ROI number stayed reasonable. This was despite data from Ideal that shows average time to fill goes down nearly 70% on average with an HR chatbot.
Saving recruiter time is also very valuable, especially for high volume hiring where a lot of time is spent screening applicants, chasing down candidates, etc. Again, the data shows savings of around 2.4 hours/hire, which can be easily translated into dollars and cents.
There are a lot of non-economic value drivers that stem from adding a chatbot to your recruiting efforts. Recruiters can spend less time on tedious tasks which improves their quality of life. And, candidates have a better experience by getting their questions answered quickly, better follow up and feedback, etc.