Investing in a recruitment platform like Vervoe is a strategic decision. To understand its impact, measuring the Return on Investment (ROI) is crucial. This guide will walk you through the steps to effectively measure the ROI of Vervoe, providing a clear picture of how the platform benefits your hiring process.
Step 1: Identify Key Metrics
Before ROI can be calculated, we need to identify the key metrics that matter to your organisation. These metrics will help track the impact of Vervoe on your hiring process. Some of these metrics might include:
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Time to Hire: The time taken to move a candidate from application to offer.
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Efficiency Gains: The time taken to complete recruitment tasks, such as Time to Hire.
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Candidate Quality: The quality of candidates progressing through the recruitment process, such as the interview-to-hire ratio.
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Quality of Hire: The performance of new hires in their roles.
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Retention Rate: The attrition rate of new hires at 3 or 6 months.
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Candidate Experience: Feedback on the recruitment experience (e.g., Net Promoter Score - NPS).
In addition to these, consider your internal hiring metrics—known as Hire Data—which will provide more detailed insights into your recruitment process. These include:
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Average Time to Fill a Role (Time to Hire): The time from when a candidate applies to when they are hired.
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Retention Rate: The percentage of new hires who remain after a specified period (typically 1 year).
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Rehire Rate: The percentage of employees who hiring managers would hire again.
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Hiring Manager Feedback: Qualitative insights from hiring managers regarding candidates and the recruitment process.
These metrics will help assess the efficiency of your hiring process and the quality of candidates hired.
Step 2: Gather Baseline Data
Collect data on the identified metrics before implementing Vervoe. This baseline will allow you to measure improvements post-Vervoe. For example:
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Average Time to Hire: X days
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Efficiency Gains: X time per task
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Quality of Hire: X (performance ratings or scores)
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Retention Rate: X% (attrition rate at 3 or 6 months)
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Candidate Experience: (e.g., Net Promoter Score - NPS): X
Also, collect data for your internal metrics:
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Average Time to Fill a Role (Time to Hire)
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Retention Rate
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Rehire Rate
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Hiring Manager Feedback
This data will serve as a starting point to compare against post-implementation results.
Here is an example of what might data might be captured in a call centre.
Step 3: Track Post-Implementation Performance
For enterprise customers, your Strategic Account Manager will track and provide updates during Customer Objective Reviews to help you measure your ROI. This data will help you understand the impact of Vervoe on your recruitment process.
If you're not on an Enterprise account, compare your baseline data with the same metrics at four weeks, three months, and six months post-implementation of Vervoe.
For internal metrics, track how these evolve:
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Average Time to Fill a Role (Time to Hire)
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Retention Rate (at 3 or 6 months)
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Rehire Rate
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Hiring Manager Feedback
Step 4: How Vervoe Captures and Auto-Calculates Metrics
Vervoe simplifies the process of capturing and calculating key recruitment metrics in real-time. Here's how Vervoe handles each of the key metrics you’ve identified:
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Time to Hire: Vervoe automatically tracks the time taken for each candidate to move through the hiring process, from application to offer. This data is captured in real-time and aggregated to provide an average time to hire. You can view this metric in your dashboard, broken down by role, department, or timeframe.
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Time Savings: Vervoe captures time savings across your recruitment process, as shown in the insights tab. By automating tasks and removing manual steps, you can streamline workflows and reduce admin time. Specific time savings can be measured by comparing the duration of tasks no longer in the process.
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Quality of Hire: Quality of Hire is measured through Vervoe’s ‘Hired’ feature. This feature assesses the quality of new hires and provides insights into the correlation between performance and assessment. After 120 days, hiring managers will receive a survey with 2 questions relating to performance. This data is gathered and stored in Vervoe, so you can track long-term hiring quality.
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Retention Rate (Attrition Rate): Vervoe helps you assess retention by allowing you to track the attrition rate of new hires at key milestones, such as 3 or 6 months. While this data isn’t automatically tracked in Vervoe, your recruitment or HR team can manually provide the necessary information. By mapping this data against pre-Vervoe metrics, you can spot trends and make informed adjustments as needed.
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Candidate Experience: Candidate feedback is captured at the end of the Vervoe assessment, upon submission. Vervoe calculates the Customer Satisfaction Score (CSAT) from this feedback, providing you with a clear indicator of how candidates perceive their experience. The results are displayed in assessment insights, helping you identify areas for improvement. This data can also help improve your employer branding.
Step 5: Communicate the ROI
To ensure your team can continue to gain benefits from Vervoe, we recommend communicating the stats and ROI provided to stakeholders. Highlight key areas of improvement, such as:
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Reduced Time to Hire
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Significant Efficiency Gains
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Better Quality of Hire
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Improved Retention Rate
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Happier Candidates (through improved Candidate Experience)
By clearly communicating the metrics that matter most to your organisation, you’ll demonstrate the effectiveness of Vervoe in transforming your recruitment process.
Conclusion
Measuring the ROI of Vervoe is essential to understanding its value in your recruitment process. By following these steps and leveraging Vervoe's built-in analytics, you can quantify the impact, make data-driven decisions, and show how Vervoe can improve your hiring efficiency and quality.
For additional help and recommendations on measuring ROI of Vervoe for your organization, contact your Strategic Account Manager today.
Feel free to use our ROI Spreadsheet Tracker.