We earn commission when you buy through affiliate links.
This does not influence our reviews or recommendations.Learn more.
Calculating the Return on Investment (ROI) is vital in ensuring that your technology investments are paying off.
Understanding your ATSs ROI helps you make informed decisions about your HR technology strategy.
It allows you to quantify its benefits and justify its costs to stakeholders.
Key Points to Consider When Calculating the ROI of an ATS
1.
This translates into reduced time to hire or time to fill.
This can reduce future recruitment and training costs, as well as the disruption brought on by employee turnover.
The average cost per turnover is $10,000.
This would mean that your reduced employee churn saves you $50,000 per year.
Annual cost of bad hires= ((Avg.
During this period, the company hired 10 new employees.
Each hire cost them $2,250 less, so their total savings were $22,500.
Step 1: Identify ATS Costs
First, we start with all thecosts associated with your ATS.
This step is simple because you just add the costs together.
So, all you have to do is combine them.
As a reminder, the formula is ROI = (Net Gain / Total Costs) x 100.
