What metrics should you use to measure recruiting ROI in Europe?

2 How to calculate recruiting ROI

To calculate your recruiting ROI in Europe, you need to identify and quantify both the value and the cost of your hiring activities. The value can be measured by the revenue, productivity, performance, retention, and satisfaction of your new hires. The cost can be measured by the expenses related to sourcing, screening, interviewing, hiring, and onboarding your candidates. You can use the following formula to calculate your recruiting ROI:

Recruiting ROI = (Value - Cost) / Cost x 100%

For example, if you hired 10 new employees in Europe who generated €1 million in revenue and cost €200,000 in recruiting expenses, your recruiting ROI would be:

Recruiting ROI = (€1,000,000 - €200,000) / €200,000 x 100% = 400%

3 What metrics to track

To calculate your recruiting ROI in Europe, you need to track and analyze various metrics that reflect the value and cost of your hiring activities. Time to hire, quality of hire, cost per hire, source of hire, retention rate, and candidate experience are all important metrics to consider. Time to hire indicates how fast and efficient your recruiting process is; quality of hire indicates how well you are attracting and selecting the right talent; cost per hire indicates how much you are investing in your hiring activities; source of hire indicates how effective and diverse your sourcing strategies are; retention rate indicates how well you are retaining and engaging your talent; and candidate experience indicates how well you are building and maintaining your employer brand and reputation.

4 How to benchmark and improve

To measure your recruiting ROI in Europe, you need to compare and contrast your metrics with your own historical data, industry standards, and competitors' performance. This will help identify strengths and weaknesses, set realistic goals, and implement action plans to improve results. Some of the best practices for benchmarking and improving recruiting ROI in Europe are using data-driven tools and platforms to collect, analyze, and report metrics; segmenting and customizing metrics according to target markets, roles, and candidates; involving stakeholders in measuring and improving ROI; and experimenting with new ways to enhance value and reduce cost. For example, you can use applicant tracking systems (ATS), customer relationship management (CRM), analytics software, collaborate with hiring managers or recruiters, try new sourcing channels or interviewing techniques, etc.

5 How to communicate and demonstrate

To measure your recruiting ROI in Europe, it is important to communicate and demonstrate your metrics and results to both internal and external audiences. Doing so will help you showcase achievements, justify decisions, and secure support and resources. Some of the best practices for doing this include using clear and concise language and visuals to present data, such as charts, graphs, tables, or infographics. Additionally, stories and examples should be used to highlight metrics and results; for instance, you can use testimonials, case studies, or success stories to showcase impact. Relevant and meaningful indicators should also be used to contextualize metrics and results; for example, you can use benchmarks, trends, or ratios to explain performance. Finally, actionable and strategic recommendations and requests should be used to leverage metrics and results; for instance, you can use insights, suggestions, or proposals to improve outcomes.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?