The article raised some good questions and got me thinking about a blog on social media recruitment ROI. Below are some quick thoughts on how I measure some of the ROI of social media recruitment.
First my buddy @fondalo the CEO of Bundlepost and a master of social media has taught me that it is critical for any user of social media to clearly articulate why they are on social media in the first place. Is it to make new friends, learn and share your passion or is it like most people to generate revenue for your business? For those of us in the business of recruiting it’s about profit, so let’s focus our ROI efforts here. Remember that although your social media efforts could be realized in future months or years, you really should measure your initial efforts in the fiscal year where the costs incurred. So in your first year of social media recruitment, the ROI will typically be lower due to higher front end costs and investments.
Here are some simple things you must capture before you identify your metrics:
- Timeframe (fiscal year)
- Total number of hours invested in social media:
- Average hourly spend $
- Other investments (ie: technology, software, training, licensing, etc):
Here are some metrics and example data I capture for clients:
Metric Target Actual Note
# of Hires 10 15 Av. cost saving of $2500
# of new clients 10 22 With business avg. of $12k
# of other jobs 3 5 Jobs avg of 7.5k
Therefore ROI calculations would be:
Hire cost savings of $37,500 + $264,000 + $37,500 = $339,000
Costs for this client were:
880 hours (4 hours per day x 220 working days at $35 an hour) + $10k in other social media investments = $40,800
So the ROI in this particular case is $298, 200 ie: $339,000 – $40,800.
Not all social media recruitment ROI efforts are so impressive, but if the efforts are contained, the audience is targeted and specific, these types of results are possible.
What kind of ROI are you seeing on your social media recruitment efforts? Maybe it’s time to put some structure to your efforts.