The Total Economic Impact of LinkedIn Talent Solutions

This webinar will start at 1pm BST

The Total Economic Impact™ of

LinkedIn Talent Solutions Webinar Forrester Consulting

Jonathan Lipsitz

TEI Consultant

25. May 2016

© 2016 Forrester Research, Inc. Reproduction Prohibited 4

Source: The Total Economic Impact of LinkedIn Talent Solutions, April 2016

Agenda

› Introduction

› What is TEI?

› Executive summary

› Analysis

› Financial summary

› Question and answer

Please note:

This slide presentation is an abridged,

graphical, and complementary

representation of a case study.

For a full explanation of methodology

and details on model calculations,

please refer to the full case study (The

Total Economic Impact of LinkedIn

Talent Solutions, April 2016)

https://lnkd.in/ew-66hs






What is TEI?

Background and methodology


Source: The Total Economic Impact of LinkedIn Talent Solutions, April 2016.

The TEI framework centres on quantifying benefits, capturing costs, evaluating flexibility, and adjusting risk

Benefits

Costs

Flexibility

Total

Economic

ImpactTM

(TEI)

R

i

s

k



Disclosures

The audience should be aware of the following:

› This document is an abridged webinar version of a full case study (Forrester Total Economic Impact of

LinkedIn Talent Solutions, April 2016).

› The study is commissioned by LinkedIn and delivered by the Forrester Consulting group.

› Forrester makes no assumptions as to the potential return on investment that other organisations will

receive. Forrester strongly advises that readers should use their own estimates within the framework

provided in the report to determine the appropriateness of an investment in LinkedIn.

› LinkedIn reviewed and provided feedback to Forrester, but Forrester maintains editorial control over

the study and its findings and does not accept changes to the study that contradict Forrester’s findings

or obscure the meaning of the study.

› The customer names for the interviews were provided by LinkedIn.

› Forrester does not endorse LinkedIn.


Executive summary

High level findings



Talent Solutions Increased New Hire Quality And Reduced Costs

Talent Solutions • Recruiter

• Job Slots

• Career Pages

• Work With Us Ads

Three Organisations Forrester interviewed

three current LinkedIn

Talent Solutions

customers

Eight Days Time-to-hire was reduced by

8 days, creating more value

for organisations

Based on an analysis of LinkedIn Talent Solution customers’ feedback and quantified benefits, costs,

risks, and flexibility, Forrester has determined Talent Solutions has the following three-year risk-adjusted

financial impact:

Return on Investment:

182%

Payback Period: 4

months

Net Present Value: €973

per position filled


Analysis

Interview highlights and model


Source: The Total Economic Impact of LinkedIn Talent Solutions, April 2016

Interviewed Organisations

› Forrester interviewed 3 Talent Solution customers in EMEA

• Global conglomerate involved in retail, real estate, and other activities

• Beverage company with multiple brands used around the world

• Packaged foods company with operations around the world.

› And created a composite organisation

• Headquartered in EMEA.

• Operations across most population centres around the world.

• Initially deployed in one division in Europe

• This division fills approximately 1,250 positions per year.



The Interviewed Organisations Faced Several Challenges

Inconsistent processes across divisions

and geographies drove up hiring costs.

There was a strong need to convey a

clear, consistent corporate brand to

potential hires.

Rogue hiring was taking place in some

markets, which resulted in higher costs

and a misalignment between company

direction and new hires’ skills.

Desire to do more direct sourcing of

candidates to improve internal knowledge

of what was needed and what the

applicant pool looked like.



In Their Own Words

“LinkedIn has transformed how we do recruiting. It is central to the new way the recruiting team works.” - Head of talent engagement, Europe

“With Talent Solutions, we were looking to move from a transaction recruiting model to a strategic sourcing one. This involves blending branding and recruiting into a comprehensive talent relationship model.” - Global HR communication manager

“We survey our hiring managers every year. Since adopting LinkedIn, they have said that the quality of hires has increased by 20% and that their overall perception of the HR recruiting function has increased by 18%.” -Talent acquisition operations manager



Organisations Benefit In Many Ways With Talent Solutions



Risk-Adjusted Benefits

Total benefits:

€6.95 Million



Risk-Adjusted Costs

Total costs:

€2.40 Million



TEI also includes potential risks and future “flexibility” options

Flexibility, as defined by TEI, represents the opportunity to make an investment in

additional capacity or capability that could be turned into future business benefit:

› Recruiters can quickly respond to the business’ changing needs in terms of types and number

of hires.

› More agile when moving into new geographies or changing business requirements.

› Interviewed organisations did not express any real risk concerns – only that recruiters may

not use the tools.

There are two types of Risk that TEI considers – Implementation & Impact:


Financial summary

Results



ROI of 182%, a NPV of €3.65 Million and a payback period of 4 months

Initial Year 1 Year 2 Year 3 Total Present Value

Costs (€ 88,625) (€ 734,600) (€ 789,600) (€ 789,600) (€ 2,402,425) (€ 2,002,243)

Benefits € 0 € 1,581,100 € 2,424,740 € 2,942,700 € 6,948,540 € 5,652,175

Net benefits (€ 88,625) € 846,500 € 1,635,140 € 2,153,100 € 4,546,115 € 3,649,932

ROI 182%

Payback period 4 months


Question and answer



Want to learn more?

› Full Report: https://lnkd.in/ew-66hs

› 5 minute video produced by Forrester that

succinctly explains the key findings from the study

› Infographic: https://lnkd.in/eRuCDrc




https://youtu.be/W6ewVj8Vz5w

https://youtu.be/W6ewVj8Vz5w

https://lnkd.in/eRuCDrc

forrester.com

Thank you

Jonathan Lipsitz

[email protected]

The Total Economic Impact of LinkedIn Talent Solutions

Recruiting & HR

Transcript of The Total Economic Impact of LinkedIn Talent Solutions