How to measure the ROI of artificial intelligence for recruiting
Conversational AI helps make the hiring process feel more human for both recruiters and candidates. It helps improve the candidate experience by improving engagement, communication speed, and accessibility. It helps recruiters build a talent pipeline and saves talent acquisition teams hundreds of hours. But what it also tends to do is confuse talent acquisition leaders when they try to measure its performance.
When it comes to understanding the impact of recruiting AI, there’s no shortage of metrics to measure. However, there are a few questions a Talent Acquisition Director needs to be able to answer to explain the impact of a conversational AI investment:
- Is it creating engagement with candidates?
- How much pipeline is it building for my recruiters?
- Do candidates like engaging with it & what are their thoughts on interacting with AI?
- Is it making my recruiting team more efficient by helping with database cleanup?
- How many hours is this saving us?
Read on to learn how to measure the impact of AI for recruiting on candidate engagement, on candidate experience, and on your talent pipeline.
Is it working? Understanding candidate engagement & talent pipeline:
At Mya, we define an engaged candidate not as someone who has opened a message, or who has participated in a conversation, but rather as someone who has engaged in a back and forth natural dialogue with Mya. A conversation is considered complete when Mya assigns a status to a candidate such as withdrawn, rejected, or scheduled.
A candidate who takes too many days to reply to Mya could eventually time out and be set to the status withdrawn. A candidate who doesn’t meet necessary qualifications could be set to rejected, whereas a candidate who meets the qualifications and has picked a time to chat with a recruiter would be set to scheduled.
Some customers have seen candidate engagement rates as high as 92% with a majority of conversations with Mya completing in 5 minutes or less. To understand your candidate engagement you’ll want to look at a few different numbers inside reporting. You can access reports through the recruiter portal.
Inside the report you’ll get an aggregate view of candidates contacted, conversations completed, and phone screens scheduled. To get an understanding of how well Mya is engaging your candidates, take a look at the response rate and completion rate. The scheduled rate shows the number of qualified candidates Mya has set interview dates with. It will tell you how well Mya is building your talent pipeline.
Do my candidates like it? Getting a handle on candidate experience:
Looking at candidate engagement data is interesting, but it doesn’t show the entire picture. It doesn’t tell you about the sentiment a candidate had about their experience engaging with Mya. That’s why we recommend measuring candidate satisfaction score with a simple question.
Send this question or something similar to candidates after they complete screening with Mya. “On a scale of 1 - 10, how was your experience interacting with Mya today? (1 represents a poor experience, while a score of 10 reflects that you were satisfied with your experience.) Aggregate data from clients that have implemented a similar feedback gathering process returned an average 9.8 / 10 candidate satisfaction score.
The candidate satisfaction score will give you insight about the general perspective your candidates had on interacting with Mya. If you’d like to go a step further, send a second question asking candidates for any comments or concerns they have about the experience. Reading the raw unstructured conversational data from a question like, “What did you like or dislike about interacting with our AI recruiter?”, is a great way to get more insight on your candidate experience.
Is it improving my database? Measuring passive candidate re-engagement:
So, the conversational AI is working. It’s engaging candidates, building pipeline, and they have positive reactions and sentiment towards conversing with it. But that’s not all Mya can do. Many customers also use Mya to re-engage passive candidates from their existing talent pool.
Mya can perform outreach campaigns to existing passive candidates, update their candidate profile data, change candidate status, and convert them into active interview ready warm candidates. This is possible because an ATS integration gives Mya a way to update each candidates status and attach conversational records to their profile.
To understand how well Mya is refreshing your talent pool look at how many candidate statuses were refreshed by Mya. You’ll have to gather this data from your ATS. Mya customers have been able to complete status updates for 90% of candidates and reactivate 14.5% of passive candidates.
How many recruiting hours is this saving? The big picture view:
Unless you’ve had a reporting and data collection process that’s been critically examining your hiring process pre-AI, it can be difficult to get a sense on hard ROI from an AI investment. In our experience, it’s unusual for recruiting organizations to gather metrics like conversations completed, interviews scheduled, candidate satisfaction score, or passive candidates re-activated. If you have this data, that’s all well and good and will add to your comparison. But it’s not quite necessary.
Whether you have data or not, a great way to understand the overall impact of recruiting AI is by looking at the metric time-to-hire or for staffing companies time-to-fill. The overall promise of a recruiting AI to a business is that it makes hiring more efficient. The easiest way to measure that is by looking at hiring speed. Post AI implementation, how much faster are you filling roles?
A leader at one of our customers shared this with us “Before Mya, to reach out and connect with 1,000 passive candidates, it took us, 10 full-time recruiters, 5 full days. Mya delivered the same results in 11 minutes.”
In our opinion, that’s a clear cut positive ROI. When you combine the productivity gains in with improved candidate engagement, candidate experience, and a stronger talent pipeline - it’s hard not to see a strong business case for implementing conversational AI. If you’d like to learn more about adding Mya to your HR technology stack schedule a demo with our team today.