Federal Contract Recruiting ROI
Three Tier ROI Analysis Model
Every company has a different purpose and set of circumstances that drive the value of their Recruiting ROI. ProvatoHR’s Three Tier ROI Analysis Model evaluate the issues from three standpoints: revenue, cost, and performance, as described in the graphic on the right side of the page.
→ Top Line
In federal contracting, recruiting is required throughout the business development lifecycle. Nearly 70% of recruiting volume for typical federal contractors is in support of pre-award initiatives. For a company to increase its top line sales revenue, it must increase its sales pipeline by pursuing more opportunities. Further affecting the top line is the amount of unrealized revenue from unfilled positions on sold work, or “no-bid” decisions for opportunities that may have been “winnable” if the time and resources were available to pursue the opportunity.
→ Bottom Line
Most companies consider only the hard dollar costs of paying for their recruiting needs, such as the costs for job board subscriptions, recruiter salaries, or agency fees. However, the scalability and elasticity of resources should be evaluated against the spikes in recruiting volume, especially when long-term commitments are required for resources and recruiting staff.
→ Performance
Traditional recruiting metrics are not universal, particularly in federal contracting, where delays and changes to requirements are common. Quality, responsiveness, and value of hire are crucial performance factors, not to mention the effect of bad hiring decisions on past performance.
