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How do you measure the return on investment (ROI) of an employee selection process? This is one of the most common questions that we are asked by our clients, and in turn, one that is asked of HR professionals by their executives. Based on our experience, our own research and the research of many others, we feel that there isn't a single answer to the question. In fact, we contend that there are 5 key factors directly related to the ROI of the selection process:
Anytime you evaluate the true value or ROI of a selection process, it’s important to look at it from different angles. I’ve listed 5 factors that we feel are essential to consider whenever you compare the value of alternative selection processes. Your individual circumstances will determine how much weight to put on each of these factors. Keep in mind though, these 5 areas are not mutually exclusive. A good selection process should receive high scores in each of the 5 areas. You don’t have to compromise one in order to improve another.
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