YVI – Return of Investment & Opportunity Loss Reduction Estimate

by | May 8, 2025 | Uncategorized | 0 comments

The ROI of adopting the AI-based recruitment software is 1,000%, meaning that for every dollar spent on the AI software – YVI, the customer expects to gain $10 in return.

potential benefits or gains that a company misses out on by not adopting the AI software.

Identify Key Metrics Before Adoption

  • Time-to-Hire: Measure the average time it takes to fill a position without the AI tool.
  • Cost-per-Hire: Calculate the cost associated with each hire, including HR hours, recruitment agency fees, etc.
  • Quality of Hire: Assess the performance and retention rates of hires made without the AI software.
  • Candidate Experience: Evaluate the satisfaction levels of candidates during the recruitment process.

Calculate ROI of AI Adoption

  • Total Savings and Gains from AI: Combine all the potential gains, including reduced costs, increased revenue from faster hiring, and improved employee performance.
  • Initial and Ongoing Costs of AI: Subtract the cost of purchasing, implementing, and maintaining the AI software.

Scenario:

A company is considering adopting AI recruitment software to streamline its hiring process. Currently, the company has the following metrics:

Average Time-to-Hire:60 days

Cost-per-Hire: $5,000

Number of Positions to Fill Annually: 100

Average Revenue per Day per Unfilled Position: $300

 

After implementing AI recruitment software, the company expects the following improvements:

Reduced Time-to-Hire: 30 days (saving 30 days per hire)

Reduced Cost-per-Hire: $3,000 (saving $2,000 per hire)

Increased Number of Hires per Year: 110 (due to faster recruitment process)

Cost of AI Software Implementation and Maintenance: $100,000 annually

 

Step 1: Calculate Opportunity Gains**

      1.1 Revenue from Reduced Time-to-Hire:

            Days Saved per Hire:  30 days

            Revenue per Day per Position: $300

             Revenue Gain per Hire:  30 times 300 = $9,000

Total Revenue Gain from Faster Hiring (for 100 positions):100 times 9,000 = $900,000

1.2 Savings from Reduced Cost-per-Hire:

Cost Savings per Hire: 5,000 – 3,000 = $2,000

Total Cost Savings (for 100 positions): 100 times 2,000 = $200,000

  

Step 2: Calculate Total Opportunity Gains

Add the revenue gain from faster hiring and cost savings:

Total Opportunity Gains} = 900,000 + 200,000 = $1,100,000

Step 3: Subtract the Cost of AI Software

Cost of AI Software: $100,000

Step 4: Calculate ROI

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