iLogos Study Finds Structured Candidate Relationship Databases Reduce Cost per Hire and Identify Quality Candidates Faster
Report shows structured candidate relationship databases and processes transform traditional sourcing expenses into investment, bringing long-term benefits to organizations
iLogos Research (www.ilogos.com), the leading provider of staffing research, benchmarks and best practices, today released Economics of Candidate Relationship Databases, a research report that measures the long-term value and effectiveness of candidate relationship databases. The study shows how large volumes of candidates become a competitive advantage for organizations with those databases in place.
An executive summary can be downloaded at www.ilogos.com/en/ilogosreports/iLogosCRD/. iLogos Research is a division of Recruitsoft, Inc., the leading provider of enterprise staffing solutions for large organizations. iLogos has been providing information about the adoption of corporate Web site recruiting and staffing best practices since 1997.
The report cites that by applying Internet-based technologies and customer relationship management principles to the staffing management process, organizations can improve recruiting process efficiency and realize significant cost savings. According to the study, integrating those principles, processes and technologies with a structured candidate relationship database allows organizations to better target sourcing spending and transform traditional sourcing expenses into an investment. Additionally, the study finds that candidate relationship database investment value can increase exponentially over time to reach hundreds of thousands of dollars, and reduce the sourcing cost-per-candidate between 25 and 50 percent.
“The fundamental principle behind the candidate relationship database is similar to that of customer relationship management – it is cheaper to maintain a relationship than acquire a new one. A candidate relationship database allows an organization to communicate with its quality candidates at the most appropriate time, providing benefits to both parties,” said Founder and President of iLogos Research, Yves Lermusiaux. He added, “In order to do this effectively, the right online staffing processes must be in place to support the candidate database in a structured way to enable functionality such as Job Agents, skills-based candidate profiling, segmented targeting and, importantly, automated candidate communication in order to build long-term loyal relationships and ultimately find quality candidates faster, whether internal or external.
The Economics of Candidate Relationship Databases report also presents comprehensive financial models that show true monetary value of a proprietary structured candidate relationship database for an organization. iLogos’ models provide examples of organizations’ sourcing budgets and sourcing costs-per-candidate, and reveal how those candidate sourcing expenditures can be transformed into candidate relationship sourcing inventory. By quantifying the value of a structured candidate relationship database, this report substantiates how spending on sourcing should be seen as an investment to build an inventory of active and passive qualified candidates, not merely as an expense.
“There is tremendous value associated with the implementation of structured candidate relationship databases. Our research shows a direct reduction in the cost-per-candidate and consequently, cost-per-hire, and we are also seeing organizations find quality candidates faster. In any economic environment, those databases work to optimize costs associated with sourcing and provide organizations with the opportunity to capitalize on the flow of candidates available in their databases. With those systems in place, today’s high volume of candidates is a competitive advantage instead of an overwhelming administrative headache,” Lermusiaux explains.
He added, “This report clearly shows a change in the way HR professionals are looking at sourcing today, which will have a profound impact on how they will allocate spending in the future. Essentially sourcing is no longer simply viewed as a reactive expense-driven means of finding candidates, but as a proactive ongoing structured investment. This investment into the candidate relationship database ensures optimal talent flow over the long-term, allowing organizations to find the appropriate talented professionals at the right time.”
About iLogos Research
iLogos Research benchmarks staffing best practices and analyzes the economics of talent flow optimization. iLogos serves major corporations throughout the world with business analytics that tie staffing technology and process improvements to reduced costs and improved bottom-line financial results. Published reports and studies include: Where The Jobs Are; Trends in Fortune 500 Careers Web Site Recruiting, Best Practices for Careers Web Site Recruiting for the Fortune 500, European 500, Canadian 100, and CAC40 (France), Perception vs. Reality: Jobseeker Behavior Online; and Global 500 Web Site Recruiting Surveys. iLogos and its analysts are highly regarded speakers and authors, and are quoted extensively in leading media worldwide including Investors Business Daily, Harvard Business Review, BusinessWeek, The Wall Street Journal, The Financial Times, and Human Resource Executive.
About Recruitsoft
Recruitsoft delivers services and technology to manage enterprise staffing and optimize talent flow for large organizations such as Honeywell, Hewlett-Packard, Dow Chemical (NYSE: DOW), Fortis, Starbucks Corporation, P & G, Thomson, Agilent Technologies, The Gillette Company, Deloitte & Touche, Bombardier, Anthem Blue Cross and Blue Shield and UnitedHealth Group, among many others. Recruitsoft’s full-service offering includes the software, services and computing infrastructure to enable large corporations to rapidly improve staffing processes and generate significant ROI.
Press Contacts:
Krista Canfield
Tel: 415.905.4011
e-mail: kcanfield@horngroup.com