How to Determine the ROI of a New Employee
The costs incurred when executing your staffing process are significant. You need to consider the time and resources spent advertising the open position, vetting and interviewing candidates, as well as finally onboarding the new employee. Understanding the return on investment when hiring a technology professional is important for any organization.
What follows is a high-level overview of how to determine the ROI of a new IT employee. It provides valuable insights on an important task where the associated costs tend to be complex. Leverage these insights to make your hiring and onboarding processes more efficient.
Count All Costs of the Staffing Process
To get the most accurate reading on ROI, it’s important for companies to include all the costs associated with the hiring process. This includes everything related to recruiting, especially the time spent by your employees performing resume analysis and interviewing candidates.
The onboarding process also needs to be part of this analytical effort. Additionally, don’t forget the time spent training the new hire and getting them up to speed on your current project work.
Select the Right Methodology to Calculate ROI
Obviously, figuring out how to calculate the ROI for a new hire is a must. Work on a methodology with your team, while getting buy-in from the executives who end up signing-off on the company’s hiring efforts. If your organization’s executive team doesn’t trust the ROI calculations, the entire process to determine it goes for naught.
The cost-benefit analysis needs to weigh all the costs of the staffing process against the overall revenue generated by the new hire. Consider everything about the employee, especially if they bring different skills compared to the rest of the team. This might allow the company to bid on different types of projects than before.
Remember, some roles – especially non-sales positions – make it difficult to calculate ROI. Don’t let this fact deter your efforts.
An Efficient Staffing Process Improves the Return on New Hires
Take steps to improve the efficiency of your company’s staffing process. Having a detailed staffing plan at the ready when a need arises is essential. Giving your HR team modern tools for candidate sourcing, tracking and analysis also helps.
Finally, working with a trusted staffing agency partner can provide an additional boost in the organization’s hiring process.
When searching for a staffing agency as a partner, look no further than the team at Digital Prospectors. As one of the top IT employment agencies in the Northeast, we provide great candidates able to make a great return on your company’s investment. Schedule some time with us soon.