How do you Calculate the ROI for Investing in Hiring?
We are in some uncharted waters when it comes to the labor market. Attracting and acquiring the talent that best fits your organization needs is more important now than ever. While the macro indicators are trending in the direction where the market will be more favorable for employers, we’re not close to there yet — especially since there are still around 1.9 open positions per job seeker.
Nearly every organization can make their hiring and talent strategies more efficient. How do you calculate the ROI for investing in making your organization better at recruiting, hiring and retaining valuable team members? Read more below about lowering costs, saving time and money, and minimizing risks.
Talent acquisition and retention can be both costly and time-consuming. But using tools such as the behavioral data has helped hundreds of companies demystify employee behavior and help control costs of the guesswork by more efficient matching of the candidate for the position.
- Hiring failures and turnover in general is costly, the average cost of turnover is greater than $15,000 per person and some studies show it can be as high as three times salary cost to the business
#2 Save time:
Sixth Sense Solutions Consulting coupled with Predictive Index (PI) software saves time by bringing order to an often chaotic process, filtering candidates by behavioral targets (set according to the traits hiring teams know will lead to success in a role).
- The average time-to-fill rate is more than 40 days and many PI users have cut that figure in half – or more.
- Hiring teams that use a defined process and tools like the Predictive Index. regularly have a more productive recruitment pipeline, and conduct interviews
weekly, even daily, because their pipeline is updated.
- Identifying the best internal team members for available roles.
#3 Minimize Risk
Taking the guesswork out of hiring gives business leaders peace of mind – and frees them up to focus on execution and results, knowing their talent strategy will bring in top performers.
- Quits are still up 23% since pre-pandemic.
- Behavioral data brings clarity to hiring and can help map your people strategy to your business strategy.
- Its application also fosters a consistent end-to-end
experience for hiring teams and candidates.
- Scientifically validated tools
The Turnover Calculator is an interactive way to estimate the proven cost of
losing an employee. This tool takes the salary of a hire and estimates the
actual cost of losing the employee.
- The Predictive Index Software powered by Sixth Sense Solutions has helped clients reduce attrition by up to 20% YoY.
- We help reduce costs and are a net added benefit to organizations in terms of cost savings and growth.