How Do You Justify the Investment in New Recruiting Tools?

To help you build a compelling business case for investing in new recruiting tools, we asked HR managers and technical recruiters for their best strategies. From focusing on data-driven research to presenting industry success stories, here are the top seven strategies these professionals shared.

• Focus on Data-Driven Research
• Highlight Opportunity Cost
• Showcase ROI and Accuracy
• Enhance Employer Branding
• Emphasize Cost Reductions
• Ensure Seamless Integration
• Present Industry Success Stories

Focus on Data-Driven Research

Data-driven research is absolutely essential when developing a business case for purchasing new recruitment technologies. From my own experience, concentrating on measuring the possible return on investment is the most effective strategy. Examining our present recruiting statistics in great detail has been one tactic I have found to be really successful. I’ll review items such as applicant pipeline conversion rates, cost-per-hire, and time-to-hire.

For instance, I dealt with a customer whose 45 days of average time-to-hire was reduced. We projected a 20% savings by including a recruiting automation system, therefore reducing it to 36 days. By use of variables like lowered overtime, lost productivity, and opportunity cost, quantifying the impact in actual dollars helped create a strong financial case.

Another approach I’ve found valuable is benchmarking our recruiting performance against industry peers. Using outside data sources, I will determine our position and then create the case for how the correct recruitment technology may bridge any gaps. Presenting it as a competitive need rather than a nice-to-have will inspire leaders far more. The secret is really turning the advantages of a new tool into real-world commercial results.

Whether it’s improving hiring efficiency, enhancing the applicant experience, or strengthening employer branding, I constantly try to link the technological investment with the bottom-line influence. Though it’s not always simple, I have discovered that the most convincing business case is created by a data-driven, outcomes-oriented strategy. Quantifying the ROI in plain financial terms helps me to excite executives about the possibilities presented by these new recruitment approaches.

Swati Paliwal, Technical Recruiter, Gowide

Highlight Opportunity Cost

When making a business case for recruiting tools, I always stress the opportunity cost of leaving the issue unaddressed.

Too many business leaders see HR as a pure cost center and do everything they can to cut tangible costs in the HR department. However, rarely do business leaders consider the costs associated with time, effort, and existing internal resources, which are often considerable.

As a result, framing things from an opportunity-cost perspective helps highlight the cost-saving benefits of recruiting tools, satisfying business leaders’ innate need to reduce costs. For example, if a recruiting tool saves 1,000 hours of administration a year, that represents a significant cost saving from a working-hours-spent perspective.

With opportunity cost approximately framed, you can now highlight potential return on investment clearly, increasing the likelihood of adopting your chosen tool.

Chloe Yarwood, HR Manager, Test Partnership

Showcase ROI and Accuracy

One strategy I’ve used to build a compelling business case for investing in new recruiting tools is to clearly highlight the return on investment we can expect from the tool. For instance, Reveal competency-assessment users estimate they’re saving $400 per candidate when using competency assessments as part of the hiring process due to faster decision-making. This highlights the immediate cost-saving benefits.

Additionally, I share the impressive improvement in hiring accuracy. For example, before using Reveal, users were hiring the right person for the role 60% of the time. After incorporating Reveal’s competency assessments, this figure has jumped to 90%. This drastic improvement demonstrates the effectiveness of the assessments in identifying the best candidates for the job.

I also highlight the long-term financial benefits. Reveal has enabled organizations to save up to $100,000 per executive position by allowing them to target their approaches to developing and promoting internally. This not only reduces turnover costs but also ensures that we are building a team from within that is aligned with our company’s culture and values.

By presenting these specific metrics and connecting the investment to tangible outcomes, I build a strong case for why adopting these new recruiting tools is a smart move for our organization. It demonstrates that competency assessments not only enhance our ability to identify the best candidates but also contribute significantly to the overall success and financial stability of our teams.

Linda Scorzo, CEO, Hiring Indicators

Enhance Employer Branding

A strategy I’ve used is to highlight the enhancements in employer branding that modern recruiting tools can offer. In the competitive tech industry, the ability to stand out as an employer of choice is crucial. I illustrated how new tools with better candidate-experience capabilities, such as streamlined application processes and enhanced communication features, could significantly boost our brand in the eyes of potential candidates. By improving candidate engagement and interaction, these tools not only aid in attracting better talent but also in projecting our organization as a forward-thinking, tech-savvy company.

Alari Aho, CEO and Founder, Toggl Inc

Emphasize Cost Reductions

I think one effective strategy for building a compelling business case for investing in new recruiting tools is to highlight the substantial cost reductions achieved through these investments. For instance, by automating routine administrative tasks such as candidate screening and scheduling interviews, we can significantly decrease the time our HR team spends on these functions—often saving upwards of 20 to 30 hours per week.

Besides accelerating the recruitment process, I think these time savings allow our HR staff to concentrate on more strategic initiatives like talent development and employee engagement programs, which are crucial aspects of HR.

Additionally, if we consider the impact of these tools on the success of our recruiting efforts, such as successfully hiring two additional HR team members due to improved efficiency, it becomes evident that the investment pays for itself.

Spending less on repetitive tasks and more on strategic planning can enhance overall team productivity, boost employee morale, and ultimately foster an environment that supports growth and innovation. I would say that aligning resources with strategic goals definitely helps the organization to attract top talent and gain a sustainable competitive advantage.

Vikrant Bhalodia, Head of Marketing & People Ops, WeblineIndia

Ensure Seamless Integration

When pitching a new recruiting tool, I focus on three main things: seamless integration, clear benefits, and measurable outcomes.

I make sure the tool will easily fit into our current systems. Changing old habits is hard enough without adding extra complications. When we brought in a new recruitment platform, I emphasized how it would connect effortlessly with our existing HR software. Smooth integration helps everyone feel more at ease and confident about the switch.

Next, I highlight what the tool will improve. Without showing tangible benefits, the pitch doesn’t make any sense. For example, when presenting a tool that promised to speed up our hiring process, I explained exactly how. I shared real examples and success stories from other companies to illustrate its potential impact. Without this, someone not involved in the HR trends wouldn’t see much value in it.

Finally, I focus on tracking success. Clear metrics are essential. I set specific goals like reducing time-to-hire and improving candidate quality. These measurable outcomes provide a way to assess the tool’s effectiveness over time. This transparency builds trust and ensures we can make informed decisions about whether to keep using the tool or not.

On a personal note, I’ve always believed that staying current with technology is what keeps you alive in the market. In my years in HR, I’ve seen how the right tools can simplify tasks, which has a direct impact on boosting morale.

I know many of us defend ourselves from change, but remember it’s a chance for growth and innovation.

Susan Andrews, HR Consultant, KIS Finance

Present Industry Success Stories

One effective strategy for building a compelling business case for new recruiting tools is showcasing success stories from similar companies. It’s all about demonstrating that others in your industry have faced the same challenges and found solutions with these tools.

For instance, when we considered upgrading our recruiting software, we identified a few companies within our sector that had already made the switch. We collected and shared their testimonials and data, showing significant improvements in their hiring efficiency and candidate quality.

Presenting these success stories to our leadership team painted a clear picture of the potential benefits. It’s not just about saying the tool works; it’s about proving it through real-world examples. This approach made it easier for everyone to see the value and reduced the perceived risk, ultimately helping us get the green light to invest in new recruiting tools.

Jessica Bane, Director of Business Operations, GoPromotional