I know. Vendor articles can get a little hyperbolic, but this is LITERALLY a thesis developed by a Survale client on the impact of candidate experience on revenue.
Antonio Arias-Lopez heads up talent acquisition for Survale client, Tipico. Tipico is an international provider of sports betting and casino games, headquartered in St Julian’s, Malta. Arias-Lopez chose to focus his Masters Thesis from the Frankfurt School of Finance and Management, on how candidate experience affects revenue, both across the board and specifically with Tipico.
The thesis, titled “The P&L Impact of Candidate Experience,” coalesces over a decade of insights and scholarly works into a thoroughly researched volume detailing how candidate experience affects revenue.
By this point, nearly every talent acquisition leader concerned with candidate experience is familiar with the Virgin Media case study detailing huge potential losses from poor candidate experience. Aria-Lopez notes in his thesis that there is little available research on the link between candidate experience and revenue beyond this classic example (Note: Survale client, Craft Brew Alliance, makes a strong case around candidate experience and revenue in this case study).
Arias-Lopez leads us through defining candidate experience and explores why it is important, both financially and non-financially. He breaks down candidate experience impact from a positive perspective (good candidate experience increasing revenue) and from a negative perspective (bad candidate experience depressing revenue).
He covers how to measure candidate experience, citing both his use of Survale in measuring Tipico’s transactional, stage-based candidate experience in real-time, as well as benchmarking performance broadly and by industry using Survale partner, the Talent Board’s annual CandE benchmarking data. I will note here that Survale clients can automatically benchmark their performance against Talent Board data.
He then details the process for mapping financial outcomes to candidate experience and wraps it up with an example of P&L impact using Tipico as an example.
The interesting part of the research is that even with Tipico’s stellar +26 candidate NetPromoter score, the potential annual losses from dissatisfied candidates could be as high as €3M. He also points out that the impact could be far more substantial because, in addition to its corporate owned business, Tipico works with around 1,000 independent franchisees that are typically small businesses, where recruiting is not supported by the same level of recruiting capability as Aria-Lopez provides for corporate recruiting.
At the end of the day, this scholarly work brings together a mountain of previous candidate experience research, combines it with a real-world example, and provides a blueprint that any talent acquisition leader can use to analyze the financial impact of candidate experience for their own business.
And in the end, it’s another strong example of how to use candidate experience data to, of course, create more satisfied candidates. But more importantly, to use candidate experience data and feedback to impact business outcomes. This is where the art and science of candidate experience can transform recruiting, as well as further impact core business success metrics, like revenue and profitability.