How to Calculate the Return on Investment (ROI) of a Recruitment in 2025?

16/07/2025 Back to all articles

The Return on Investment (ROI) is a key indicator for measuring the effectiveness of a recruitment. Too often overlooked, it enables companies to evaluate whether the resources invested in hiring talent have generated measurable added value. 

Whether you are an HR manager, SME manager, or recruiter, calculating the ROI of recruitment helps you make better decisions and optimize your talent acquisition strategies. 

What is Recruitment ROI? 

Recruitment ROI (Return on Investment) refers to the ratio between the gains generated by a new employee and the costs incurred to hire them. 

In other words: how much did your company earn (or lose) from this recruitment? It’s an indicator used to measure the economic impact of hiring on your business. 

 

Why Calculate Recruitment ROI? 

Calculating recruitment ROI isn’t just an HR best practice. It’s a strategic requirement to align hiring with your company’s performance goals. 

• Justify budgets: Proving that each hire creates value enhances HR’s credibility with leadership. 
• Optimize recruitment processes: Comparing ROI across different sourcing channels (referrals, agencies, job boards) helps identify the most cost-effective ones. 
• Reduce hidden costs: A bad hire can cost on average €15,000 but can increase depending on the seniority level. ROI highlights avoidable losses. 
• Better anticipate turnover: Including retention length in the calculation helps identify “at-risk” roles and improve succession planning. 
• Manage HR efficiency: An HR dashboard including recruitment ROI is a powerful tool for managing human capital performance. 

What Are the Costs of Recruitment in 2025? 

In 2025, recruitment costs go beyond job ads and agency fees. Here’s what to include: 

Direct costs: 

• Agency fees 
• Job ads and social media promotion 
• Salaries of recruiters and hiring managers 
• Talent assessment tools (psychometric tests, AI tools) 

Indirect costs: 

• Time spent by operational teams in interviews 
• Onboarding, integration, and training 
• Initial drop in productivity 
• Early turnover or replacements 

 

What Are the Benefits of a Good Hire? 

A good hire creates value, both financial and qualitative: 

Financial benefits 

• Increased revenue generated by the employee 
• Improved team productivity 
• Fewer errors or inefficiencies 

Qualitative benefits 

• Better company culture 
• Positive impact on employer branding 
• Higher talent retention 
• Time saved for managers 

 

Formula to Calculate Recruitment ROI 

ROI (%) = [(Generated Benefits – Recruitment Costs) / Recruitment Costs] × 100 

Example: 
Generated benefits over one year: €150,000 
Total recruitment cost: €30,000 

ROI = [(150,000 – 30,000) / 30,000] × 100 = 400% 

 

Practical Guide to Calculating Your ROI 

1. Collect the data : Revenue generated, productivity gains, savings 
2. Add up all direct and indirect costs : Agency, HR time, onboarding, tools, etc. 
3. Apply the ROI formula : Analyze the results by role or source 
4. Adjust your recruitment strategy if needed 

 

What Influences Recruitment ROI? 

Recruitment ROI depends on several internal and external factors: 

• Quality of onboarding 

Effective onboarding accelerates employee ramp-up time, increasing their contribution. According to Gallup, great onboarding can cut ramp-up time by 50%. 

• Job fit 

Poor alignment between candidate skills and job requirements reduces performance and can cut ROI by half in 12 months. 

• Retention rate 

The longer an employee stays, the higher the ROI. Turnover before 12 months often eliminates the return on investment. 

• Manager involvement 

Involved managers increase hiring success rates. 

• Tools used 

Tech tools like ATS or AI improve efficiency and ROI. 

 

How Recruitment Agencies Improve Hiring ROI 

Using a recruitment consultancy firm in Belgium should be seen as a strategic investment, not a cost. These experts bring added value at every step, directly impacting your ROI. 

Accurate and fast targeting of the right profiles 

Firms have: 

• Updated and qualified candidate databases 
• Active networks in niche markets 
• Predictive assessment tools (tests, structured interviews, AI) 

Result: faster recruitment and better-quality candidates. 

Reduction of hidden costs 

By outsourcing part of the process: 

• Less internal time from HR and managers 
• Lower risk of bad hires (and costly turnover) 
• Fewer costs from poor hiring decisions 

Improved retention 

Recruitment agencies often offer guarantees: 

• Post-hire follow-up 
• Free replacement if the hire leaves early 
• Onboarding and integration support 

According to Forbes, structured onboarding makes new hires 69% more likely to stay for 3+ years. 

Strategic consulting and productivity gains 

Good agencies don’t just send CVs: 

• They challenge your job descriptions and help craft market-relevant offers 
• They assess your company culture 
• They advise on employer branding and your value proposition 

These efforts attract aligned, committed profiles, often resulting in a 12-month ROI above 300%. 

 

2025 Trends to Watch 

The sector is evolving, and several 2025 recruitment trends directly impact ROI: 

• Skills-based hiring: More companies are prioritizing skills over diplomas. 
• Artificial Intelligence: AI tools improve candidate matching, reduce bias, and speed up processes. 
• Pay transparency: New regulations push employers to disclose salary ranges, affecting job offer appeal. 
• Remote work as a retention driver: According to LinkedIn, offering hybrid work options is now an indirect ROI booster (less absenteeism, higher satisfaction). 

 

Calculating recruitment ROI is essential to measure HR efficiency, justify budgets, and align hiring with performance. In a world increasingly driven by data, this KPI becomes a strategic lever for building high-performing teams.