Optimize your recruiting budget with Source Channel ROI Calculator
January 23, 2023
Talent Acquisition teams use several different channels to attract and find talent, but it’s often unclear which sources are actually bringing in a return on the investment or ROI. And frankly, in times of economic uncertainty, it’s these questions of ROI that are critical. We’re seeing companies taking a more thoughtful approach to where their dollars are spent. This is why at Gem, we’ve made a point to support our Talent Acquisition leaders with the resources to speak to their finance partners (you can read about them here and here).
Looking at the TA team's budget is crucial when you consider the rising costs of recruiting.
Appcast recently reported that recruiting costs skyrocketed in 2021, with the median cost per application (CPA) rising to 43%, from $19.96 in 2020 to $28.47.
Yet, as TA teams spend more on recruiting tools and source channels, many teams still struggle to accurately measure their impact or ROI.
According to an Aptitude Research report, a shocking 63% of companies are not measuring the ROI of their investments.
Our latest updates to Talent Compass allow TA leaders to evaluate the success of their sourcing investments to reduce costs and optimize spending based on which channels are driving impact.*
Track spend and capture CPA/CPH across all channels
We all have those tools we love using and insist are essential for the team’s success, yet fail to back them up with metrics or data that our finance partners will understand. Your CFO wants to know what this source channel is actually doing related to the business’ goals – how is this making your team more productive, efficient, or competitive? When we attach metrics like cost per application or hire to our source channels, we are able to back up our requests with data. Gem’s Source Channel ROI Calculator gives you one home base for all your recruiting source channels spending making it easier for you to track the metrics that matter most.
Eliminate costly and unproductive spend
Today’s economic environment requires all teams, including TA, to look closely into their expenses and identify what is actually worth the investment. There just is no room for spending on a channel because that’s what you’ve been doing. Driving cost-savings and efficiency by removing the source channels that are producing a higher cost per application (or hire) is simply a smart business decision. With the Source Channel ROI Calculator, it will be clear to identify what’s working and what’s not so you can make data-driven money-saving decisions that your CFO will appreciate.
Drive impact by investing in best-performing channels
Conversely, when you have a very clear understanding of the value or return you’re receiving from a source channel then your justification for keeping it is validated with data. Even when times are economically uncertain, we do our best to retain the expenses that we know are performing the best and driving the best results.
Early results from our 2023 Recruiting Trends Survey confirm that indeed our customers are thinking about these metrics, with 61% of teams planning to data to uncover the best sources of hire and 57% of teams planning to use data to report cost-per-hire.
With Source Channel ROI Calculator, teams can leverage data-driven insights to make better source channel investment
*Source Channel ROI Calculator is only visible to Gem Admins.
As we continue to invest in the Source Channel ROI Calculator, we’d love to hear from you.
If you’re new to Gem or interested in Talent Compass get in touch with a team member to learn more.
Contact your customer success manager today if you’re a Gem customer and want to learn more about getting started with Talent Compass!
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