The ROI of Video for Recruitment Agencies
It’s no secret that recruiters are typically focused on meeting their KPI’s and hitting their targets. With video interviewing, you’ll start to see a positive, hard ROI within the first month so it’s important to know exactly what you should be tracking to see its worth. It will provide you with a treasure trove of useful data so it’s key to know exactly what to interpret.
There are so many metrics out there for recruitment businesses that it can be overwhelming. So, to help you get ahead, we’ve outlined the 6 key metrics that video interviewing will help you to improve:
1. Time to fill
Time to fill is often measured as the number of days between receiving a vacancy and a candidate accepting an offer. This metric gives your clients a clear picture of how efficient your recruitment business is, so the shorter this time frame is the more competitive you become.
Video interviewing allows you to reduce your time to fill as it drastically reduces the time spent during the screening and decision-making process, as well as allowing you to only send the most relevant candidates for face-to-face interviews with your clients. In some usage cases, there has been over 70% reduction in time to fill!
2. Cost per hire
Your cost per hire data takes into consideration different variables such as the costs of advertising fees, pre-hire assessments, recruitment technology, recruiter salaries, amongst many more. Glassdoor estimates that the average cost per hire for an entry level role is £3,000, which increases depending on aspects like volume, seniority, industry, etc. It basically allows you to see the economic value of your efforts and if anything is wasting unnecessary cash.
Video allows you to reduce costs in a number of ways. Aspects like using the platform to create talent pools, reduce your time to fill, increasing productivity and reducing administration tasks all do wonders for reducing your cost per hire.
3. Retention
A simple but highly effective metric to measure is your client retention, which refers to the number of clients where vacancies were received compared to the year before, to compare how many clients you have retained, gained, and lost within that year. Satisfied clients mean greater increase in lifetime-value, as it increases the total revenue that you’ll receive from them during the course of them being your client.
Video interviewing allows you to offer a service that puts you ahead of your competitors by adding extra value to your client. This is something that many agencies currently can’t match. When you’re taking a proactive approach to getting the best for both current and prospective clients, they’re much more likely to stay exclusive in your agency.
4. Client and candidate engagement
It’s a very well-known fact that video drives more engagement. Not just in recruitment, but in aspects like social media and web traffic too – video content on social media gets 1200% more shares than text and image content on average, and it’s predicted that 82% of global internet traffic will be video by 2021.
So if this applies to our day-to-day internet habits, it’s no surprise that recruiters are using engagement as one of the key metrics when it comes to video introductions and interviews. You can measure your engagement in aspects like open rates and reply rates to emails and messages, and even down to how long it takes clients to respond to your shortlists in comparison to response times before video.
5. Interview-to-hire ratio
Your interview to hire ratio is basically the number of candidates you submit to a client for interview before a hire is made. A high ratio can mean that your screening process is poor or you don’t have a thorough enough understanding of what type of candidate your client is looking for. A low submit to hire ratio means that you’re succeeding in sourcing and screening the best candidates.
Using video can hugely reduce your interview to hire ratio, as it allows your clients to ‘meet’ candidates before their face-to-face interview and allow them to become a lot more involved in the decision-making process. It means you’re only inviting candidates for an interview who have been actively chosen by your client, meaning there’s an even stronger chance that the candidate will be successful.
6. Candidate dropout rate
Candidate’s drop out of recruitment processes for so many different reasons, it would be impossible to have a 0% drop out rate. Some may no longer be in a position to change roles; some may even only apply after a bad day at work and then change their mind. It’s impossible to intercept the variety of personal reasons a candidate drops-out. But other candidates, those who are actively looking to changing their role, can still drop out of your recruitment process – but in these cases you have more control over improvement.
Speed is one of the biggest drivers in recruitment. Nearly half of rejected job offers are due to a candidate already accepting a job offer elsewhere, and two thirds of candidates consider a job a lost cause if they don’t hear back within two weeks. As video speeds up your recruitment process and improves your candidate experience, you can expect to see your dropout rate reduced!
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It’s also key to remember that this is not an exhaustive list – there are so many different benefits that come with using video interviewing that it would be impossible to list them all. Video is the trend that keeps on growing and growing, and it can be incorporated into every part of your recruitment process. More and more agencies are beginning to use video – but there are currently more who aren’t. If you adopt a video recruitment strategy now, you’re putting yourself at the forefront of the latest recruitment tech and giving your agency a strong USP and edge in the competition.