How should we calculate ROI on candidate rediscovery software given our placement fees?

Calculate ROI by comparing the software's cost to the savings from reduced sourcing spend, recruiter hours saved on screening, and faster time-to-fill. Weigh these against your typical placement fee to determine how many placements the savings represent. Since staffing agency revenue is directly tied to placements, the clearest way to frame ROI is by connecting time saved back to placements made, not just hours recovered.

Track these specific figures during a pilot:

• Sourcing Cost Avoided per Rediscovered Placement: The American Staffing Association estimates the average recruiting cost per placement at $4,683. Most of this cost is avoided when a candidate already in your database is placed instead of sourcing a new one.
• Vacancy Drag Reduced: Each open requisition costs about $98 a day in lost productivity. Faster time-to-fill through rediscovery shortens this daily cost.
• Recruiter Hours Saved on Screening: Multiply the hours saved by the hourly cost. This time can be used to work on additional job orders instead of re-screening candidates already in the system.

Submission-to-Placement Rate from Rediscovered Shortlists: Compare this rate to your previous process to see if rediscovered candidates convert to placements at a similar or better rate.

A simple formula: (sourcing cost avoided per placement, multiplied by the number of rediscovered placements) plus (recruiter hours saved multiplied by hourly cost) minus the software's subscription cost, measured over your pilot period.

Platforms like Skima AI structure pilots around this exact tracking. They measure time-to-screen and submission outcomes during a 30-day window. This allows you to input your agency's actual placement fees and volume into this formula instead of relying solely on industry averages.