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LinkedIn ROIHow to Measure and Improve

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New Followers Job Applicants Impressions/ Targeted Ads Increase in InMail Response Rate

Current InMail Response rate is 37% If the InMail response rate increased by 5-10 points, what would that

mean for your fill ratio? Talent Brand Index Click Through Rate

How to measure ROI

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How to calculate your ROI from LinkedIn

The value proposition of LinkedIn for Staffing Companies covers 5 main pillars:

a. Active Candidatesb. Passive Candidatesc. Brand Buildingd. Business Developmente. Internal Hiring

Most Staffing Companies use LinkedIn to a greater or lesser extent under each of these headings so when looking at ROI it is sensible to measure across all of these pillars. As a side note, this why comparing the cost of LinkedIn to job boards makes little sense as the overlap is just one pillar.

This can be applied for each month, quarter, year or contract period once the measurement systems are in place.

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 a + b) Active and Passive Candidates

Best practice on LinkedIn is to approach the most relevant (best) candidates rather than the most active and to do so in a way assuming that they are passive.

This is straight forward and achieved by implementing mandatory source coding on your CRM/ ATS system. Better still, if you are able to, segment this further by adding separate source codes for eg. ‘LinkedIn - RPS’ and ‘LinkedIn – Job Slots’ to give you more detailed information.  

In addition to accuracy, the two other key advantages of source-coding on adding the candidate to your CRM rather than retrospectively on placements are, firstly, that all candidates placed can be tracked back to their original source rather than ‘on the database’ being the main source… how did they get on there? For thoroughness when candidate profiles are re-activated the source-code should be updated too.

Secondly, this also provides information on how the candidate funnel is managed from each source making any ‘leaks’ or ‘bottlenecks’ more obvious. 

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5 Tips

Improving ROI from direct sourcing:

Build Followers - Followers are 95% more likely to respond to an InMail Build engaging and interesting Consultant profiles and Career pages – written

to their target audiences Improve RPS User search effectiveness – online training and certification Review InMail quality – within the RPS reports and desk-based review Examine candidate management – and train as appropriate

Improving ROI from Job Slots:

Build Followers - Followers are 3X more likely to apply to job adverts Build engaging Career Pages relevant to each candidate demographic Improve Job Slot optimisation – online training and certification Review quality of adverts – within the RPS reports and spot-check online Review the application process and experience

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c. Brand BuildingThe importance of things like number of Career Page visitors, content views and social interactions, views of job adverts, increased Talent Brand Index, increased numbers of Followers,etc. cannot be overstated.

The suggested methodology (leveraged from Alex Charraudeau's post here) for measuring direct ROI for the brand building component is by using three things:

•Google Analytics to measure the volume of candidates LinkedIn drives to your website (it’s worth noting LinkedIn as a referral site tends to rank towards the highest for volume, most pages viewed, most time spent, and towards the lowest for bounce rate). Example below.•The visitor behaviour on your website (speak to your website company if you do not have this already)•Your average conversion ratios and average fees

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Example:

Average fee – £5k Average Interviews to placement ratio - 3:1 Average number of CVs sent to interview ratio - 3:1 Average number of applications made to CVs sent ratio - 5:1 Average number of visitors to your website to application made ratio – 3:1

In this example the value you can attribute to each visitor of your website is £37. From here, in the example above for the period shown there were 421 visitors to

this website coming via LinkedIn.

We can measure the value of this component by taking the number of visitors during the period multiplied by the average value of each visitor. In our example this gives us 421 x £37, so £15,577

This also, of course, does not take in to account the benefits of clients visiting your website from LinkedIn.

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5 Tips for improving ROI from Brand Building:  Analyze the visitors to your Career Pages - build a dynamic landing page (with

rich media) for each audience demographic Review the hyperlinks and descriptions - and where they go to on your website Build a content marketing calendar- and execute it Host content on your website that can shared on LinkedIn - use Sponsored

Updates for your best content Review the user experience and application process on your website – speak to

your website company and create tracking goals

 d. Business Development

Much like with candidates, clients should also be source-coded when added to your CRM so placement fees can be tracked back to source.

Keep in mind that nearly 60% of the buying decision is made before Sales Rep involvement and that 75% of Buyers consult social media during the buying process.

What potential clients see of you – both your Consultants profiles and your Company and Career Pages – will make an big impact in them responding (or not!) to your contact be that InMail, email or a phone call. 5 Tips for improving ROI from Business Development: Build a Career Page audience for Clients – or at least talk to your clients within each

page Share content aimed at Clients – showcase your recruitment and industry expertise Summary section on employee profiles – should be written for Clients as well as

Candidates RPS Saved Searches – have real-time insight on decision makers moving in and out of

companies Client profiles and shared connections – use warm introductions and insight rather

than cold outreach

e. Internal Hiring

There is a certain irony that often the most challenging roles for Staffing Companies to fill are hiring for themselves. With an increasingly strong economy, most Staffing Companies having ambitious growth plans and a shortage of top talent, the war for talent in Staffing is very much on!

ROI for Internal Hiring is measured in a number of different ways:

Cost of Rec-to-Rec fees saved Revenue generated by the new hires Cost of having the open headcount from considering the average revenue generated

during that time being lost and factoring in reduced time to hire Use which ever measurement, or combination of measurements, is most reflective of

your company uses LinkedIn for Internal Hiring.

5 Tips on improving ROI from Internal Hiring: Know your story and value prop – and tell them. Build out a Career Page audience for internal hiring – use (good) video content Share regular non-salesy content about working for your Company – use Sponsored

Content Be organized – build your talent pools and plan your strategy Get your job adverts showing ahead of your competitors – use Sponsored Jobs

 SpendSpend often falls in to two categories: Enterprise product spend and Consumer product spend.

Enterprise Product Spend

As we now have a broad and measurable way of calculating ROI we can look at the total spend across the Enterprise product suite:

Building and Engagement products: Follower Advert Impressions, Employee Branding, Career Pages and Sponsored Content

Recruitment tools: Job Slots, Sponsored Jobs and the RPS Platform

Consumer Product Spend

While none of these personal upgrade products (eg Job Seeker or Recruiter Lite) are designed for Recruitment Companies/ Consultants, sometimes for junior employees not yet RPS-ready they are okay.

This means we can look at ROI for just the Enterprise Products on LinkedIn or across total spend or even the total spend including free LinkedIn.com too. 

 Some great resources can be found in:

Build Engage Recruit Microsite