Candidate Management Software
Would you see a decent return on investment from our candidate management software?
Calculating an exact ROI for a company often requires many variables to be taken into consideration. However, there is a basic equation that you can use to give you a better idea of whether or not candidate management software is right for your business. Let’s take a look.
Firstly, you need to find the cost of your HR employee who will be handling the hiring process. You need to work out the amount of hours they will be working on filling the vacancy each week and then multiply that number by their hourly rate.
HR employee weekly hours focused on filling vacancy multiplied by hourly rate. So, if the employee was to spend 35 hours per week at £15 per hour, the cost would be £525.
However, there could be a problem with the amount of work that this employee can handle. Say, for example, they can only process 50 applications each day but you need to get through 75. What happens then? Well, if you want to get through all of the applications without creating a backlog, you’d need to enlist someone else to help with the task.
This could be on a part-time basis, but they still need to be paid, so you need to calculate how much the recruitment drive is going to cost you in terms of HR staff:
75 applications per day divided by employee #1’s capacity of 50 = 1.5 members of staff needed to process applications
(35 hours per week x £15 per hour) x 1.5 staff members = £787.50 per week
Using this formula will give you a ballpark figure to work with. Providing the cost of your candidate management software falls below that of the number you arrive at for hiring the additional member of staff, you can be fairly certain that adopting the software will show a positive ROI.
A caveat to note, however, is that our software works extremely quickly and very accurately, far more efficiently than any human can hope to achieve. This could free HR staff up to perform other tasks, further improving your ROI when you implement a recruitment management system into your business.