Automation has been the name of the game for most sectors in the past few years, and HR is no exception. In fact, the adoption of recruiting automation has shown notable growth of 547% year-over-year. It doesn’t surprise me, because an automated hiring process has proven to significantly improve core hiring metrics.
So if you’re wondering if automating your hiring process is really worth it and want to justify the investment before you take the leap, this article will cover everything you need to know about measuring the ROI of hiring automation.
At its core, hiring is a people-centric process. And your hiring team needs to spend most of their time on people-centric tasks such as connecting with right-fit candidates and nurturing relationships.
Automating the hiring process makes it efficient, saves time and money, reduces errors and recruiter fatigue, helps you build meaningful candidate communications, and when deployed right, delivers substantial business growth.
The hiring funnel is notoriously leaky and even marginal improvements at each stage of the hiring cycle can dramatically increase engagement and conversion. A robust automated hiring system can help you achieve that and improve efficiency at each hiring stage, including:
Any automated hiring software is as good as the ROI it is capable of generating. AI and automation in hiring offer three significant advantages:
But how can you measure the tangible outcomes of automating your hiring process?
Let’s see four major areas where hiring automation has a significant impact (and how you can measure it).
Today’s hiring landscape is incredibly competitive - and expensive. According to benchmarking research from Society for Human Resource Management (SHRM), the average cost per hire in 2022 was $4,700! Companies are deploying strategic automation to maximize their reach, attract more candidates, and keep them engaged.
A tedious application process can result in candidates dropping off mid-application. AI-driven automation enables hiring teams to offer a quick and seamless application process and respond instantly to qualified candidates.
Additionally, hiring teams can also explore other avenues such as re-engaging past candidates and generating referrals from current employees. By leveraging the existing talent pool, automated hiring software can reduce your acquisition costs and maximize the ROI of your existing tech investments, such as an ATS or CMS.
According to data from our research team, here are some real-world results achieved with AI-driven hiring automation:
What to measure: time-to-hire, cost-per-hire, application completion rate
Hiring teams are often overwhelmed with applicants and qualified candidates are likely to drop off from a long-drawn-out hiring process. Time-consuming tasks like screening, responding to messages, and scheduling interviews can be completely automated — removing bottlenecks in the recruiting process, enhancing recruiter productivity, and helping companies quickly hire top talent.
Personalized candidate engagement results in improved response rates and a better, memorable candidate experience. Our data shows that an automated hiring process can achieve increased candidate response rates (up to 55%) and faster candidate responses (3x faster)
What to measure: candidate response rate, candidate satisfaction scores
The pre-hire stage can feel like celebration time but it’s actually a major drop-off point. In an automated hiring process, hiring teams can send personalized candidate communication at scale to keep them excited about the role and company, and send timely reminders about a closely-approaching joining date.
At this stage, automation can drastically reduce candidate drop-off rates and no-shows. In fact, a leading home health and hospice provider has achieved a 23% reduction in candidate drop-off with hiring automation. Read the full story here!
What to measure: candidate drop-off rate, no-show rate
About 30% of employees quit in the first six months. With hiring automation, HR teams are able to check in with newly onboarded employees at customized intervals to ensure they’re happy and comfortable in their new roles. Additionally, automation helps in regularly conducting employee satisfaction surveys or NPS surveys. This is useful in understanding the pulse of the employees and identifying areas for improvement.
Consistent feedback collection and personalized communication can go a long way in increasing retention. Our research shows that companies that leverage hiring automation have seen a 2.5X increase in NPS scores and a significant boost in the number of positive glassdoor reviews.
What to measure: NPS, attrition rate
The ultimate goal of the hiring process is to hire top talent while maximizing hiring efficiency. Investing in well-integrated and scalable hiring automation software is the first step in achieving these results!
Whether you’re just getting started with your automation journey or are evaluating an alternative solution, check out our most comprehensive guide to recruiting automation to learn how automation can transform your hiring and drive real results!