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Whether or not to invest in tech strategies in order to increase your staffing capabilities is one of the more consequential decisions a firm can make. In order to determine if the monetary and training costs are worth it, it's vital to figure out if strategies are helping your bottom line: Did increasing demand generation activity actually boost your company’s job page traffic? Is that new automated email system really speeding up the sourcing process? Fortunately, there are ways to measure staffing technology ROI.
Check The Time
The hiring process can be a time drain. You may find that ramping up is taking way too long during the onboarding process. You may find that it is most expedient to outsource marketing. Consequently, saving time is one of the main reasons to invest in new staffing tech. This is also one of the clearer benefits to determine when assessing a tech strategy because the amount of time it saves is quantifiable.
Timing trial runs is a simple way to figure out whether or not automating work that is usually performed manually is truly beneficial. Always run these tests before actually demoing the system to be fully prepared for how much the new tech will actually speed up workflow.
Measure Product Adoption
The speed of new staffing tech may not mean much if your team is slow to adopt it, so it’s important to keep on top of the process after you bring in a new system. Ideally, the tech will help your team to accomplish onboarding and training as efficiently as possible. The key to successful product adoption is measuring its effectiveness by surveying employees in tandem with evaluating core performance metrics. The surveys will reveal whether or not employees find the new product useful and navigable, and tracking these metrics will reveal your ROI.
Collect And Observe The Data
Data is a key component of any tech solution—good staffing tech makes it possible to analyze and visualize collected data. The metrics you must examine to determine your staffing technology ROI include fill rate, job coverage, redeployment rate, and pipeline velocity. Fill rate—the time it takes to fill and receive job orders— is particularly important since it helps clarify how efficient your firm is. A low fill rate is a sign that some element in the pipeline is not pulling its own weight. This could be a matter of submittals failing to yield results or a failure to fill particular positions. Locating such problems can explain why fill rates are inadequate.
Another metric worth exploring is the submittal-to-hire ratio. Ratios that are too high or too low may point to a problem in the pipeline. A ratio that is too high is particularly worth examining, since it may signal that client submittal should be delayed until there is more qualification.
Keep An Eye On The Competition
The success of new staffing tech can also be learned from measuring your firm against others. For example, 40% of North American companies receive three or four submittals for each new hire. Exceptionally efficient firms may locate ideal candidates after a mere one or two submittals. How your company’s hiring results rate against such averages may help you to determine your system's effectiveness, and examining that metric in combination with the other approaches we've mentioned can yield a clear picture of your staffing technology ROI.