In the competitive world of talent acquisition, knowing which sourcing channels deliver the best return on investment is crucial. Whether you're managing recruitment in the US or UK, this calculator helps you assess sourcing ROI and make data-driven decisions.
Traditional hiring metrics often fall short when it comes to evaluating the real cost and effectiveness of your sourcing strategies. By comparing the cost per hire and time to fill across platforms, you can identify the most efficient and high-quality talent sources for your business.
How the calculation works
The Sourcing Channel ROI is calculated by evaluating two main factors: cost per hire and quality of hire. The formula used is:
ROI = ((Quality Score × Hiring Manager Satisfaction) / Cost Per Hire) × 100
This metric combines qualitative and quantitative data to give you a clear picture of performance. Quality is often derived from time-to-productivity, manager feedback, and retention rates, while cost includes advertising, agency fees, and internal labor. The calculator normalizes these values to provide an easy-to-interpret score for each sourcing channel.
How to use this calculator
- Enter the average cost per hire for each sourcing channel (e.g. job board, agency, LinkedIn, campus hire).
- Estimate or input the quality score for each channel. This can be based on historical performance (e.g. 0-100 scale).
- Provide the average time to fill for each channel in days.
- Include any additional performance metrics such as retention rates or manager satisfaction scores.
- Click 'Calculate' to see the ROI comparison across all channels.
- Review the results to identify the most cost-effective and high-quality sourcing channels for your organization.