The Importance of ROI (Return on Investment) and How to Measure It

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ROI (return on investment) in recruiting activities is an important indicator that shows the relationship between recruiting costs and recruiting effectiveness. In direct recruiting, maximizing ROI is the key to success. ROI is calculated as (profit from recruiting – recruiting cost) ÷ recruiting cost × 100. For example, if the annual contribution profit of a new employee is 5 million yen and the recruiting cost is 1 million yen, the ROI is 400%. ROI measurement takes into account factors such as recruiting cost, performance poland whatsapp number data after joining the company, and turnover rate. Direct recruiting reduces initial costs because it does not require payment to a recruitment agency. However, costs such as the investment of internal resources and the introduction of a recruiting management system must also be considered. Appropriate targeting and an effective approach are essential to increasing ROI. In addition, streamlining the recruiting process and improving the acceptance rate of job offers are also important factors.

Points for improving ROI Specific measures
Cost reduction Introduction of recruitment management system, streamlining of operations
Improved recruitment effectiveness More accurate targeting, better candidate experience
Long-term perspective Building a talent pool and strengthening the in-house training system

1-3. The impact of direct recruiting on ROI
Direct recruiting has a large impact on ROI and is more effective than traditional recruitment methods. It reduces recruitment costs, especially the initial investment, by eliminating the need for fees to recruitment agencies. In addition, companies can expect to speed up the selection process by directly communicating with candidates, which leads to securing excellent talent. Furthermore, targeted recruitment activities prevent mismatches and contribute to improving retention rates after joining the company. This is an important factor that leads to long-term ROI improvement. On the other hand, direct recruiting may lack immediate effect and may not be suitable for short-term recruitment. In addition, specialized knowledge is required for operation, which may increase the burden on HR personnel. In this way, direct recruiting can be said to be a recruitment method that contributes to improving ROI from a medium- to long-term perspective. To maximize the effect, it is essential to develop a strategy that suits your company's situation and objectives.