Today we did a webinar on how to calculate the value from a recruiting chatbot. For those who want to see the entire walk through, you can catch the webinar below.
Why Do This Webinar?
I feel very strongly when it comes to HR people using hard core business cases and ROI to demonstrate the value they are bringing to the organization. I think time and again the People Ops function is overlooked despite the obvious benefits they bring to the company. This dynamic exists in part because HR is held to a higher standard due to their status as a cost center.
I’m a bit of a spreadsheet junky, and so I wanted to share how I’d think about the business case for using a chatbot in your recruiting efforts. What better way to do this than a webinar?
The ROI Analysis
For anyone who wants to follow along, here is the spreadsheet I used for this analysis (no need for your email, you can just click to download).
And here is the full webinar that we went through which is very much worth your time if you’re looking at chatbots for HR:
Please don’t give me any grief for my hair. We had some technical difficulties and I literally had to sprint down the hallway to get another computer :)
First off, time to fill optimization is the largest driver of value when implementing a chatbot. In fact, decreasing time to fill is an amazing way to drive business value for any talent acquisition initiative. In this model we actually took a conservative approach to this equation so that the number stayed reasonable. This was despite data from our sponsor Ideal that shows average time to fill goes down nearly 70% on average with an HR chatbot.
Saving recruiter time is also very valuable, especially for high volume hiring where a lot of time is spent screening applicants, chasing down candidates, etc. Again, the data shows savings of around 2.4 hours/hire, which can be easily translated into dollars and cents.
There are a lot of non-economic value drivers that stem from adding a chatbot to your recruiting efforts. Recruiters can spend less time on tedious tasks which improves their quality of life. And, candidates have a better experience by getting their questions answered quickly, better follow up and feedback, etc.
Overall, it’s definitely worth looking to add a chatbot to your recruiting efforts. This is especially true if you’re hiring more than 500 people per year. Feel free to shoot us a note if the ROI spreadsheet is confusing.
We spend all day researching the ever changing landscape of HR and recruiting software. Our buyer guides are meant to save you time and money as you look to buy new tools for your organization. Our hope is that our vendor shortlists and advice are a powerful supplement to your own research.