As with any software that you implement in your organisation, and not just in the recruitment process, proving ROI is key to both implementing new technology and continuing to use it. Sometimes it can be hard to calculate, but to prove it’s worth your budget there are a few things you need to be considering.
Video interviewing offers hard ROI, meaning it’s easy to quantify and prove its success (amongst many soft ROI measures too). The following four metrics are where you’ll see the largest success when utilising video interviewing software in your recruitment process:
The main source of return for video interviewing always comes down to time-to-hire. It’s no secret that using video interviewing can drastically reduce the time it takes to fill a role, by reducing early stage screening and ensuring that time spent in face-to-face interviews is with the most suitable and qualified candidates.
As an example, you can screen around 10 video interviews in 30 minutes, as opposed to sitting on one telephone call with one candidate for 30 minutes – who might not even be suitable for the role but it’s courteous to complete the interview regardless. One of our clients here at Shine saved approximately 32 hours of screening time during one of their recruitment campaigns, by replacing telephone interview with video interviews.
The cost savings of video interviewing come in a variety of different forms.
First there’s the reduced costs of interviews. It’s likely that fewer face-to-face interviews will be needed to fill a role when using video interviewing, so less time spent in unnecessary interviews and assessment centres means higher productivity, and therefore lower costs. Reducing candidate no-shows will also help to reduce the costs involved.
Another aspect to consider is travel costs when recruiting across various locations, or hiring someone who is looking to relocate. Whether the travel costs are saved from recruiters travelling, or paying for candidates to travel to you, expenses can be saved by virtually meeting candidates via one-way or live video interviewing prior to face-to-face interviews.
The cost of a new hire can be pricey. But it can be even more expensive if that employee leaves your organisation and you need to hire yet more new employees. Candidates who complete a video interview have proven to be more invested in the role they’re applying for (say you have 80 candidates complete their interview, when 100 were invited – you know that those 20 who didn’t complete probably aren’t very interested in the role anyway!), which contributes to reduced administration costs and improves productivity.
We’ve just briefly mentioned the costs that come with hiring new employees. Another way of measuring the ROI of video interviewing is measuring employee retention and turnover rates.
Video interviewing helps recruiters to identify candidates who are more suited to the role and therefore be more confident that they will remain dedicated in their role for a longer period of time. When screening CVs, it can be easy to miss those hidden gem applications, because what is presented on paper might not always be a good representation of how suitable a candidate is. When you use video interviewing, there’s no need to screen CVs down to a minimal amount, as more candidates can be invited to complete an interview while still keeping screening time down. This way, you might spot something in a candidate that you wouldn’t have picked up from a CV.
Going back to costs, the expenses of hiring a poorly qualified candidate can be up to 30% of the employees annual salary. Often when we have open positions that we’re struggling to fill, it can be tempting to hire an adequate candidate so that the role doesn’t sit empty. At first glance it might seem like this will avoid the productivity issues that come with an empty position, but in the long run will end up costing your organisation more.
With video interviewing, recruiters can gain a greater amount of information about candidates earlier in the recruitment process, which will help to make sure that highly qualified candidates are hired, as well as having a greater idea of whether that candidate will fit the company culture.
It can also allow you to take your search further if you’re struggling to find local talent. Using video interviewing means that you can expand your efforts beyond where your organisation is based – check out our case study with REED Education here, showing how you can successfully tackle national and overseas recruitment!
Video interviewing is helping to solve some of the biggest pain points in recruitment today, with more and more organisations opting to reap the benefits every day. As it becomes more common in modern recruitment practices, it becomes a question of when you must start using it to ensure you can create an engaging process for your candidates and become an employer of choice. Here at Shine we have no doubts that you’ll see a positive ROI if you decide to invest in video interviewing, so for everything there is to know about video interviewing software, check out our buyer’s guide!