A Simplified Way to Measure the Value of Your Recruiting

Measuring the overall effectiveness of your talent acquisition strategy can be challenging at best. There are so many metrics to keep track of, and many aren’t exactly useful.

Here’s a simple metric that we adopted from marketing: total talent acquisition spend dividedtotal new salary added. This ratio is a great way to understand what you’re spending vs what you’re getting in value (approximated by the salaries that you’re spending on new hires).

For more detail, check out this video.

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Phil Strazzulla is the Founder of SelectSoftware, a website that offers HR professionals free advice so they can buy the right business software. He got into the HR space when he started NextWave Hire, a recruitment-marketing software company.  He started his career as an early stage investor at Bessemer Venture Partners before getting his MBA at Harvard Business School where he taught himself to code and started his journey as an entrepreneur.