The ROI of Video in Talent Acquisition: Metrics That Matter

The cost of a bad hire can reach up to three times the employee's annual salary when you factor in recruiting expenses, training time, lost productivity, and potential impact on team morale. In technical roles, where expertise and team dynamics are crucial, these costs can climb even higher.

In a remote workforce, potentially with new hires located around the world, the challenge of assessing candidates is made even more difficult. Talent acquisition leaders are facing mounting pressure to make the right hire while moving quickly to secure top talent. This is where video is transforming the recruitment landscape, but it can seem expensive. So how do you measure the impact of using video for hiring?

Understanding Video Implementation in Recruitment

Before diving into specific metrics to follow, here are three basic ways organizations are leveraging video in their recruitment processes:

1. Video Job Advertisements and Descriptions

Traditional text-based job postings only illustrate so much, that organizations are creating engaging video content that showcases the role, team, and workplace culture. These videos can range from professional productions to authentic smartphone recordings of team members discussing their daily work. Ultimately, the more authentic and believable, the better!

2. Video Interviews

Both live and pre-recorded video interviews have become standard practice, especially in initial screening rounds. This approach offers flexibility for candidates and efficiency for recruiters while reducing scheduling conflicts and travel costs.

3. Employer Branding Videos

From virtual office tours to employee testimonials, video content helps candidates envision themselves as part of your organization and understand your company culture more deeply than text alone can convey.

Essential Metrics for Measuring Video ROI

To determine the effectiveness of your video recruitment strategy, you'll need to track your investment and the outcome based on key performance indicators. Here are some numbers to watch:

Time Spent Recruiting Employees

Using video in the recruitment process often drives significant improvements in time management. The most dramatic change is usually noticed in the average time-to-hire, with many organizations finding reductions of several weeks when utilizing video effectively. The time spent coordinating interviews also tends to decrease, as video interviews eliminate many of the typical scheduling issues. Additionally, talent acquisition specialists often find they can screen candidates more efficiently, sometimes doubling or tripling the number of initial assessments they can complete in a given timeframe.

Financial Impact

The simplest way to track the financial impact of a hire is to track the total recruitment costs and divide them by successful hires. Using video for initial and even second-level interviews, organizations can realize significant savings in travel expenses. While there is an initial investment in video platforms and production equipment, these costs are quickly justified with a reduction in traditional recruitment expenses. The reallocation of staff time also saves time, as recruiters can manage multiple candidates more efficiently through video platforms.

Engage Prospective Employees

“Ghosting” in the recruiting process is a term that refers to a candidate who schedules an interview but doesn’t show up. Or communication with a candidate who abruptly disengages. Video content has been found to drive higher engagement throughout the recruitment process. Organizations often see higher completion rates on job applications that include video elements, particularly when the content provides authentic insights into the role and company culture. Videos on social media channels often generate more sharing among potential candidates, extending the reach of organic recruitment efforts. The impact on employer brand reach becomes evident through increased views and interactions across various platforms, creating a compound effect on recruitment success.

Higher Quality Job Candidates

The quality of recruitment outcomes often improves with video implementation. Organizations can track the performance ratings of candidates hired through video-enhanced processes, versus non-video methods and note any changes in the caliber of new hires. Organizations can also appeal to a more diverse pool of candidates with a global reach through video. Another benefit is that offer acceptance rates frequently increase when candidates have experienced a video-enhanced recruitment process, which may be due to better role clarity and cultural understanding.

ROI on Video Recruiting

The true ROI of your video recruitment strategy can be determined from a comprehensive analysis of both benefits and costs. The calculation begins with the following:

• Quantifying the value of reduced time-to-hire, directly impacts productivity and revenue.
• Travel cost savings often prove substantial, particularly for organizations with multiple locations or international recruitment needs.
• Recruiter productivity gains translate into more efficient use of resources, while improved quality of hire can have long-lasting effects on organizational performance.

On the cost side, organizations will have to account for their investment in video platform subscriptions and any necessary equipment or production costs. However, with today’s technology, these costs should be minimal. Training time for staff could also take some time, though it’s quickly reduced as teams become more proficient with the technology. Some organizations may need to upgrade their technology infrastructure to support video initiatives effectively.

Implementation Tips for Success

Success with video recruitment requires a strategic approach with guidelines and boundaries for the interview. For example, the use of a camera when interviewing candidates and ensuring there is adequate light and a noise-free environment. Consider beginning with a pilot program in specific departments or roles, allowing you to gather initial metrics and refine your process before scaling. Proper training for recruiters and hiring managers is important, as their comfort with video tools directly impacts the candidate experience. Before implementation, establish clear baseline metrics to ensure accurate measurement of your video recruitment impact. Regular data collection and analysis will help identify opportunities for optimization, while feedback from both candidates and hiring teams provides valuable insights for continuous improvement.

As video technology continues to evolve, organizations that effectively measure and optimize their video recruitment strategies will have a competitive advantage in attracting and securing top talent. Remember, the goal isn't to use video “just for fun”, but to create a more efficient, effective, and engaging recruitment process that benefits both your organization and your candidates. Regular measurement and analysis of these metrics will help you refine your approach and maximize your return on investment.