The True ROI of Healthcare Recruitment

Maximising recruitment ROI in healthcare requires a strategic approach, going beyond basic metrics to focus on key factors that drive long-term success

CREDIT: This is an edited version of an article that originally appeared on The HR Director

Healthcare organisations are spending a lot on hiring and retention, often without fully understanding the return on investment (ROI). New data reveals that less than a quarter (24%) of organisations track the ROI of their recruitment efforts, and fewer than a third (31%) of those who monitor staff turnover calculate the cost of losing employees.

However, measuring recruitment effectiveness requires more than just tracking basic metrics. To maximise ROI, healthcare practices need a more strategic approach.

Time to Fill

The time it takes to fill a position is a critical metric, but its impact on ROI is often overlooked. Long vacancies can lead to disruptions in patient care, overwork for existing staff and delays in services. Reducing time to fill improves efficiency, as each day a position remains unfilled can result in increased costs, such as overtime and delays in service delivery. To measure time to fill more effectively, break it down into stages: sourcing candidates, engaging with them, conducting interviews, securing offer acceptance and onboarding. This segmented approach helps identify bottlenecks and refine each phase, improving the hiring process.

Cost per Hire

Cost per hire (CPH) is another key recruitment metric that includes both direct and indirect costs. Direct costs encompass advertising, recruiter salaries and recruitment tools, while indirect costs involve onboarding, relocation support and the productivity lost during the adjustment period for new hires. To assess the effectiveness of recruitment campaigns, link CPH with paid advertising metrics like cost-per-click (CPC) and click-through rates (CTR). If a campaign has high CTR but low conversion, it may indicate a need for improvements in job descriptions or recruitment pages.

Quality of Hire

Ultimately, the quality of hire (QoH) is the most important recruitment metric in healthcare settings. A poor hire can have significant costs, including reduced patient care quality and increased turnover, which can cost up to 30% of the annual salary for a position. Key indicators of QoH include performance ratings, which compare the new hire’s performance to established benchmarks, and retention rates, which track how long new hires remain in the organisation and progress within their roles. High-quality hires, focusing on both skills and cultural fit, help reduce turnover, improve patient care and stabilise staff retention, leading to better long-term ROI for healthcare practices.

By taking a more strategic approach to recruitment, healthcare organisations can not only improve efficiency but also maximise the return on investment in their hiring processes. Focusing on these key metrics will help practices make more informed decisions, reduce turnover and ultimately deliver better care to patients.