The ROI of candidate experience

How investing in a positive hiring process pays off 

In today's competitive talent landscape, organisations are constantly seeking ways to gain a competitive edge in attracting and retaining top talent. One often overlooked area that can yield significant returns is the candidate experience. Investing in a positive candidate experience not only enhances the hiring process but also drives tangible benefits for the organization. So how can an organisation measure and maximise these benefits?

The impact of candidate experience on business success

By providing a seamless and positive hiring process, organizations can enhance their employer brand, attract high-quality candidates, and reduce time-to-hire. A positive candidate experience also improves the likelihood of candidates accepting job offers, leading to increased employee engagement, productivity, and ultimately, retention.

Measuring the ROI of candidate experience

Indicators that organizations can use to measure the ROI of candidate experience initiatives:

• candidate satisfaction scores
• offer acceptance rates
• time-to-fill positions
• cost-per-hire, 
•  employee referral rates
• renege/withdrawal rates

What is a Candidate Experience Diagnostic

Having an accurate picture of your candidate experience requires a deep analysis of every single candidate touch point, from job search to application to interview and onboarding.  By applying academic and industry research, a Candidate Experience Diagnostic enables fast optimisation of the Candidate Experience, enabling actionable, meaningful change.

A Candidate Experience Diagnostic enables employers to hold a mirror up to their current process and make really impactful changes.

What are other companies doing differently? 

In 2024, Uber commissioned a team of experienced Innovation, Brand and CX Practitioners to conduct a Candidate Experience Diagnostic of their end-to-end hiring journey at Uber to help ensure a consumer-grade experience is offered to candidates.

From there, they were able to gain an understanding of the 7 key stages of their recruitment process and how to enhance these steps further to provide a first-in-class hiring experience. Learn more about Uber's story.

Long-term benefits of investing in candidate experience

What are the long-term benefits that organisations can expect by investing in a positive candidate experience. These benefits go beyond the immediate recruitment process and extend to areas such as employer branding, employee engagement, and customer satisfaction. A positive candidate experience can create brand advocates who not only become loyal employees but also refer potential customers and future talent.

According to LinkedIn's Global Talent Trends report, 94% of candidates would be willing to apply to a future job opportunity at a company if they had a positive candidate experience. This statistic underscores the potential for organisations to build a talent pipeline and attract top talent by investing in candidate experience.

In a period of economic uncertainty and relatively slow growth in many markets, many candidates are choosing to stay with their current employers.  This stagnation of talent pools means that it is more important now than ever to have a frictionless candidate experience, making it easy, fast and accessible for all candidates to apply for a job.

Summary 

Investing in a positive candidate experience is not just a nice-to-have, but a strategic imperative for organisations aiming to attract and retain top talent. By understanding and measuring the ROI of candidate experience initiatives, organisations can make informed decisions, allocate resources effectively, and build a competitive advantage in the talent market. The long-term benefits of investing in candidate experience extend far beyond the hiring process, positively impacting employer brand, employee engagement, and overall business success.  

According to a survey conducted by Career Arc, 72% of candidates who had a negative experience during the hiring process shared their experience on online employer review sites, social media, or with friends and family. This statistic emphasises the potential negative impact on an organisation's reputation and candidate pool if candidate experience is not prioritised. By investing in a positive candidate experience, organisations can mitigate the risk of negative word-of-mouth and protect their employer brand.

Published by: Tom Lakin, Global Head of Future of Work - Talent Advisory at Robert Walters.