How to track your recruiting ROI


I’d like to show you how you can track the ROI of each of your recruiting activities.

First, why do you want to track your ROI?

Your ROI measures how effective your recruiting is, based on cost. It is a metric you can use to help make decisions about your recruiting, wither to spend more money in one area or cut your time in another.

To get started tracking your recruiting ROI you will need to do a few things.

First, you will need to keep track of every expense you have for each position. Most of your expenses can be directly attributed to a position, such as a job posting fee. Some expenses affect multiple positions, like a subscription to a background service. For these shared expenses, try to split the expense across all of the open positions at that time. So a $500/month expense split across 10 positions would be a $50 expense.

Next, you will need to decide how valuable each position is. This will be subjective but if you use your best judgement you can always come back later and adjust the value. Some people might use a flat amount per position, some might use a different amount for each position based on how valuable each position is to the organization, and others might use a sliding scale for value which favors lower turnover (.e.g an employee that says for 1 month is less valuable than one who stay for 2 years).

Optionally, you might want to track how much time you put into each position. Everyone tends to underestimate how long something will take, especially if they forget about little 10 minute tasks here and there. By tracking how much time you or your team uses on each position, you can factor that into your costs.

Now that you’ve collected all of your costs and value you can run the ROI calculation for each position.

The ROI formula is the value of the position, divided by all of the costs

An ROI of 100% means that you spent as much as they are valued. There isn’t one specific ROI that is considered good, other than a ROI above 100%. An ROI lower than 100% means that more money has been spent than the value of the position, but that might be okay with longer term positions.

Once you have the ROI for your open positions, you can evaluate them to your older ROIs and assumptions or even compare notes with other Human Resource Professionals.

This has been a presentation from Chirk HR, the applicant tracking system. Go to now and signup for the free trial

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