Phenom today announced that a composite organization using its Intelligence Talent Experience platform to hire, develop and retain talent achieved a 449% return on investment over three years with a payback period of less than six months — equaling more than $24M in cost savings and business benefits — according to a commissioned Total Economic Impact™ (TEI) Study conducted by Forrester Consulting on behalf of Phenom.
As labor and talent markets continue to waver, companies are looking for solutions to counteract the volatility with more efficient, automated hiring and retention processes, and an enhanced overall experience that differentiates them from competitors.
The TEI study uncovered that with Phenom, a composite organization representative of interviewed customers standardized and streamlined hiring and retention processes and achieved the following benefits by the third year:
- 25% decrease in time to fill (or time to hire), with 30% of that decrease attributable to Phenom. Phenom facilitated faster hiring by accelerating efforts to identify, engage, screen, and schedule interviews with candidates, and enabling the growth of more qualified candidate pools.
- 30% increase in internal hires, with 70% of that increase attributable to Phenom. Phenom improved the organization’s ability to fill open positions with quality internal candidates instead of hiring talent externally, decreasing costs of new-hire onboarding, training, and time to productivity.
- 50% more efficient spending to attract talent, with 80% of that improvement attributable to Phenom. With Phenom, the organization gained insights enabling it to target spending on job boards and social media that surface high-quality candidates cost-effectively.
- 11 recruiter hours saved per week. Phenom saved the organization’s recruiters time sourcing and nurturing candidate leads, communicating with candidates, scheduling candidate interviews, and analyzing where leads are in the hiring process and who ultimately gets hired.
“[Phenom’s] artificial intelligence-enabled capabilities are a key element of how Phenom helps stakeholders execute faster and better across the talent acquisition, development and retention journey,” the Forrester study states. It also notes, “Its AI-based functionality reduces the time to fill roles, increases internal mobility, drives more productive spending to attract talent, and enhances recruiter productivity. As a result, organizations that use Phenom [Intelligent Talent Experience] are better equipped to hire, develop and retain talent.”
Additional Findings From The Forrester Consulting Total Economic Impact™ Study
To construct the study, Forrester interviewed Phenom clients, identifying the challenges they experienced previously, and the benefits, costs, risks, and outcomes they witnessed while using the platform.
Prior to implementing Phenom, the companies faced the following recruitment, employee development and retention challenges:
- Competition for talent.
- External and internal expectations for the candidate experience.
- Limited ability to build and benefit from a talent community.
- Lack of tools to support internal mobility, development and employee retention.
- Cost of vacancies.
- Manual and inefficient TA processes.
- Inadequate analytics around hiring processes, spending and outcomes.
The Forrester study determined Phenom’s platform not only assisted with these challenges, it had a direct impact on cost savings with a payback period of less than six months. Over three years, the composite organization experienced these benefits:
- $16.9M saved by decreasing time to fill a position.
- $6.7M saved by increasing internal mobility.
- $3.7M saved from more efficient spending to attract talent.
- $2.3M saved from improving recruiter productivity.
Additional benefits identified in the study:
- Improved candidate experience that elevated an organization’s brand.
- Increased satisfaction and retention of current employees.
- Reduced spending on external recruiters.
- Improved productivity around recruitment events.
What Customers Said About Phenom in the Forrester Study
“We wouldn’t be able to keep up with the competition without the functionality Phenom provides,” said a vice president of talent acquisition at an industrial equipment company. The interviewee also stated, “Now, we can make informed business decisions with data…so, Phenom’s analytics help us avoid unnecessary costs, build our budgets, and determine where to shift acquisition spending so we’re not wasting money.”
“Sourcing efforts that previously took two hours can be done in 30 minutes using the CRM, especially by using its AI,” revealed a director of talent acquisition strategy and operations at a healthcare organization.
“We now have 1.5 million people in our talent pool, which helps us a lot, especially with Phenom’s AI-driven skills and job matching,” reported a global HR systems manager at a logistics company.
“Phenom has absolutely changed where and on what we spend money, and when to attract talent,” said a senior director of talent acquisition for a transportation company.
Intelligent Talent Experience is Transformational
More than 500 global and diverse companies are already using the Phenom Intelligent Talent Experience platform to connect people, data and interactions to deliver phenomenal moments with maximum efficiency throughout the talent journey.
- Candidates find and choose the right job faster.
- Employees develop their skills and evolve.
- Recruiters become wildly productive.
- Managers build stronger-performing teams.
- HR aligns employee development with company goals.
- HRIS easily integrates existing HR tech to create a holistic infrastructure.
“Hiring and retention is now the most critical conversation in the boardroom,” said Mahe Bayireddi, CEO and co-founder of Phenom. “As the margins of companies tighten, company leaders are turning to HR to identify considerable cost savings through more efficient ways to hire, develop and retain quality talent. Consolidating spend with a solution that cuts across the most critical areas of both talent acquisition and management is possible — but only by combining and delivering on three core elements: experience, intelligence and automation.”
To see the full TEI study, or to learn more about Phenom, visit: info.phenom.com/forrester-tei