The Total Economic Impact of LinkedIn Talent Solutions

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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

forrester.com
Thank you
Jonathan Lipsitz
jlipsitz@forrester.com

The Total Economic Impact of LinkedIn Talent Solutions

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