WIXLIB

EXECUTIVE SUMMARYTEI FRAMEWORK AND METHODOLOGYFrom the information provided in the interviews,Forrester constructed a Total Economic Impact framework for those organizations considering aninvestment in the Talent Cloud.DUE DILIGENCEInterviewed iCIMS stakeholders and Forresteranalysts to gather data relative to the iCIMSTalent Cloud.The objective of the framework is to identify the cost,benefit, flexibility, and risk factors that affect theinvestment decision. Forrester took a multistepCUSTOMER INTERVIEWSInterviewed four decision-makers atapproach to evaluate the impact that the iCIMSorganizations using the iCIMS Talent Cloud toTalent Cloud can have on an organization.obtain data with respect to costs, benefits, andrisks.COMPOSITE ORGANIZATIONDesigned a composite organization based oncharacteristics of the interviewed organizations.FINANCIAL MODEL FRAMEWORKConstructed a financial model representative ofDISCLOSURESReaders should be aware of the following:the interviews using the TEI methodology andrisk-adjusted the financial model based onissues and concerns of the interviewedThis study is commissioned by iCIMS and delivered byForrester Consulting. It is not meant to be used as acompetitive analysis.Forrester makes no assumptions as to the potential ROIthat other organizations will receive. Forrester stronglyadvises that readers use their own estimates within theframework provided in the report to determine theappropriateness of an investment in the Talent Cloud.organizations.CASE STUDYEmployed four fundamental elements of TEI inmodeling the investment impact: benefits, costs,flexibility, and risks. Given the increasingsophistication of ROI analyses related to ITiCIMS reviewed and provided feedback to Forrester, butForrester maintains editorial control over the study and itsfindings and does not accept changes to the study thatcontradict Forrester’s findings or obscure the meaning ofthe study.investments, Forrester’s TEI methodologyiCIMS provided the customer names for the interviewsbut did not participate in the interviews.TEI methodology.THE TOTAL ECONOMIC IMPACT OF ICIMS TALENT CLOUDprovides a complete picture of the totaleconomic impact of purchase decisions. Pleasesee Appendix A for additional information on the5

The iCIMS Talent Cloud Customer JourneyDrivers leading to the Talent Cloud investmentInterviewed OrganizationsIndustryRegionIntervieweeNumber ofEmployeesMost challenging hireIndustrialconsultingHeadquartered in the UKwith global presenceVice president,resourcing60,000Consultants delivering strategic valueManufacturingHeadquartered in the USDirector, humanresources4,500Crew to keep plants properly staffedHealthcareHeadquartered in the USManager,employment services6,000Nurses providing patient careHealthcareHeadquartered in the USDirector of talentacquisition1,200MD Hospitalists providing patient careKEY CHALLENGESreconnect with previously vetted candidates whoBefore considering an investment in iCIMS’ Talentwere a perfect match for a new open requisition.Cloud, the interviewed organizations struggled with common challenges, including: Lack of trusted data. Lack of process, ormanual data entry, led to inaccurate data.Inconsistent hiring practices across regionalOrganizations receiving paper-based applicationsand global locations. One VP of resourcingdid not record that application in a centralsaid, “Everyone just did their own thing,” as shedatabase. An interviewee from the manufacturingdescribed how each location had their ownindustry described how some locations would fallprocesses and procedures for hiring, recruiting,weeks or months behind on entering applicationsand onboarding candidates. Since recruitinginto the ATS. This led to inaccurate reporting,teams’ KPIs and goals were not aligned,prohibiting companies from having trusted real-collaboration was discouraged and regionaltime data.siloes were being reinforced. Another intervieweedescribed how having inadequate documentation“We have high turnover. We dideverything via paper and didn’thave consistency amongst theplants. We were really looking for away to streamline our selection andhiring processes.”of hiring and selection processes contributed tosignificant penalties. Manual candidate management efforts wereinefficient and time-consuming. In the bestcase, the interviewed organization managedmassive spreadsheets to track candidate hiringHR director, manufacturingstatus. In the worst cases, candidate CVs werestuffed into drawers and filing cabinets. These Inflexible legacy solutions that failed to meetinefficient systems left hiring teams with no waytoday’s business needs. Those intervieweesto easily recontact candidates, automatewho did have legacy technology in placereporting, or track key metrics like average time-described their prior solutions as “outdated” andto-hire. Without these systems in place, HR“inflexible.” One manager of employmentprofessionals missed the opportunity toservices said, “Our board keeps asking for new,THE TOTAL ECONOMIC IMPACT OF ICIMS TALENT CLOUD6

THE ICIMS TALENT CLOUD CUSTOMER JOURNEYdifferent metrics. To change a report, I needed to“iCIMS transformed how we dideverything because suddenly iCIMS’dynamic dashboards allowedtransparency and visibility. Now weknow exactly what is going on at theflip of a switch. We couldn’t be asglobally connected if we didn’t haveiCIMS.”pay our vendor between 2,000 to 5,000 toamend the report, and it takes three to fourweeks to receive it.” Since employees are often abusiness’s largest asset (and expense), boardlevel executives need timely access to employeeoriented data to make crucial, strategic decisions.SOLUTION REQUIREMENTS/INVESTMENTOBJECTIVESVice president of resourcing, industrialconsultingThe interviewed organizations searched for a solutionthat was: COMPOSITE ORGANIZATIONSpecifically designed for talent acquisition.Organizations reported being pressured by IT toimplement their current HRIS systems’ applicanttracking modules. However, upon evaluation, oneinterviewee said, “iCIMS knows the nuances ofwhat we [talent teams] want and that’s differentfrom what an HR organization wants in itssystem.” Based on the interviews, Forrester constructed a TEIframework, a composite company, and a ROIanalysis that illustrates the areas financially affected.The composite organization is representative, but notan average of, the four companies that Forresterinterviewed and is used to present the aggregatefinancial analysis in the next section. The compositeorganization has the following characteristics:Focused on all users’ experiences. Candidate,manager, and recruiter experience were“When your entire business isreliant on finding the right peoplefor the right places when you needthem, you need the best tools to dothat. It may not mean you need tohave the cheapest tools; it’s moreabout the return on investment.”important factors in selecting a partner. Onemanager of employment services said, “I wantedsomething that was user-friendly, I didn’t want tohave to take a three-week training to figure outhow to even navigate through a system.” Agile and cloud-based. Interviewedorganizations had differing business models thatVice president of resourcing, industrialconsultingall expressed a desire for a solution which couldbe customized to their needs. The cloud-basedsolution was appealing because it could scale Description of composite. The global,with companies as their hiring requirementsmultibillion-dollar organization has both aincreased.business-to-business and business-to-consumerbusiness model. It provides sales, customer Support global locations with multiplesupport, and consulting services to its customers.languages. Candidate locations require supportThe organization has a strong brand and a globalfor multiple languages. One US-basedoperation, and it also is a people-orientedinterviewee discussed a need to support jobbusiness, where the company is reliant on itspostings in both English and Spanish.employees to deliver its services. The companyhas 60,000 employees with over 7 billion dollarsin revenue per year. The average deal size of aTHE TOTAL ECONOMIC IMPACT OF ICIMS TALENT CLOUD7

THE ICIMS TALENT CLOUD CUSTOMER JOURNEYbusiness-to-business contract is over 200,000.Last year, the company hired over 12,600 newemployees. Deployment characteristics. The organizationhas been growing steadily but given currentbusiness dynamics its growth has flattened. Thecompany conducts business with the FederalGovernment in the United States, and it thereforeis subject not only to Equal EmploymentOpportunity regulations but also AffirmativeAction compliance.I’d rather have an ‘all singing, alldancing’ iCIMS than a vanilla HRIS talentacquisition module.— Vice president of resourcing, industrial consultingTHE TOTAL ECONOMIC IMPACT OF ICIMS TALENT CLOUD8

Analysis Of BenefitsQuantified benefit data as applied to the compositeTotal BenefitsRef.BenefitYear 1Year 2Year 3TotalPresent ValueAtrIncreased productivity ofhiring team 696,276 696,276 696,276 2,088,828 1,731,535BtrAvoided revenue loss due toopen headcount 496,125 496,125 496,125 1,488,375 1,233,789CtrReduced staffing agencycosts 456,000 456,000 456,000 1,368,000 1,134,005DtrReduced impact ofcompliance violations 203,421 118,182 87,624 409,227 348,433 1,851,822 1,766,583 1,736,025 5,354,430 4,447,762Total benefits (risk-adjusted)INCREASED PRODUCTIVITY OF HIRING TEAMhiring situations where jobs need to be filled inEvidence and data. When discussing the reasonshours versus days.for selecting the iCIMS Talent Cloud, interviewees touted the benefits of having a best-of-breed systemspreadsheets to enable reporting. Afterthat was designed with talent acquisition in mind,implementing iCIMS, the interviewedrather than a generic bolt-on to their HRIS systems.organizations saw a reduction in manual entry forExamples of direct efficiency gains experienced bydata such as vacancies or number of applicants.recruiters included: Eliminated manual data entry intoThe vice president of resourcing explained:Reduced time calendaring. The manager of“[Prior to iCIMS], every time we had a departure,employment services said: “It saved us days.we maintained a humongous spreadsheet simplyRecruiters talk to an applicant, then need toto record a vacancy. We spent valuable timeschedule interviews looking at calendars for theworking on this spreadsheet so we couldcandidate, manager, and the rest of the interviewmanually calculate the metrics we needed toparticipants. It saved us 3 days per candidate justreport on like time-to-hire.”in scheduling time.” iCIMS’ text recruitingcapabilities are particularly helpful with volumeThe functionality in the iCIMS Talent Cloud enablesreduction in metrics that are essential to howrecruiting teams measure success. Examples of“As a recruiter, the first thing youdo in the morning is log into iCIMS.That’s your tool to do your job wecouldn’t manage effectively withoutit.”reductions directly attributed to using iCIMS’ TalentCloud include: On-time mobilization. The vice president ofresourcing described how in the two years sincethey deployed iCIMS, they were able to reducetheir time-to-offer-accepted metric, whichVice president of resourcing, industrialconsultingTHE TOTAL ECONOMIC IMPACT OF ICIMS TALENT CLOUDinternally called on-time mobilization, from 54 to42 days in Year 1, from 35 to 28 days now in9

ANALYISIS OF BENEFITSYear 2; the industry average was significantly bested by 45 days. Direct hire percentage. The consulting firmdescribed how they were able to increase theirdirect hire percentages from 80% to over 95% ofAverage time to onboard a candidate. Thehires.manager of employment services at a healthcarefirm was able to report to her board that theiraverage time to onboard a new hire went from“Talent Cloud’s texting capabilitiesallowed me to create campaigns totext all potential candidates at thesame time. For example: ‘We have fourjobs open tomorrow for the day shift;text me back if you can work.’ It wasimmediate. Otherwise, I would havehad to call these people. The feature isworth every penny we’re paying for it.”28.75 to 22.62 days. She attributed this to theiCIMS onboarding capability, which allows fornew hires to electronically complete theirpaperwork. Increased talent pipeline. The same managerof employment services at the healthcare firmsaid due to the ability of iCIMS to power bothexternal recruiting and internal mobility initiatives,she was able to increase her firm’s talent pipelineEmployment services manager, healthcareby 15%. Without the right pipeline to start, thequality and diversity of candidates was greatlyhampered. During the pandemic, the team usedModeling and assumptions. The additive effect ofiCIMS technology to register furloughed workers.these metrics was used to calculate the increasedThe team also utilized iCIMS’ text-based talentproductivity of the hiring team. For the compositeengagement capabilities to call workers back toanalysis, Forrester assumes that:fill various short-term roles that needed attention. The impact of the metrics that recruiting teamsarticulated after deploying the iCIMS TalentiCIMS’ text recruiting capabilities savedover 3 days in scheduling and 44 dayswith “flex recruit” positions.Cloud resulted in a total savings of 24 hours perhire. recruiter is 42.Process KPIs. Deploying iCIMS was a catalystfor creating a set of process KPIs for recruiters toThe average fully burdened hourly salary of a The composite organization also modeled thefollow; one company described how recruitersreduction in hiring and retaining approvers, whichlogged into a dashboard to look at these metrics.— as a manager — was assumed to have a fullyHR executives created universal KPIs that couldburdened salary of 55 per hour.be globally followed, so the experience for acandidate was the meaning that an experience inIowa would be the same as it was in Italy. Forexample, external candidates must be respondedto within a week and internal applicants must bepersonally contacted within three days. This Forrester’s best practice when measuringproductivity increases is to apply a percentagerecapture due to the likely fact that not all timesaved is spent working. In this case, Forresterapplied a 50% recapture.focus on timely communication provided anRisks. Forrester realizes that factors that driveimproved candidate experience, which wasrevenue in an industry can vary widely. Specific riskidentified as a top priority by HR leaders.considerations for this model include:THE TOTAL ECONOMIC IMPACT OF ICIMS TALENT CLOUD10

ANALYISIS OF BENEFITS The number of open hires can vary widely byTo account for these risks, Forrester adjusted thiscompany.benefit downward by 10%, yielding a three-year, risk-Salaries for recruiters and managers may differadjusted total PV of 1,73M.by industry and geography.Increased Productivity Of Hiring TeamRef.MetricA1Hours saved in recruiterproductivity per hireA2Average fully burdened hourlysalary of a recruiter 87,750/2,080 working hoursA3Number of permanent positionhiresC3A4Hours saved in approverproductivity4 hoursA5Average fully burdened hourlysalary of a manager (approver) 55 per hourA6Productivity recaptureAtIncreased productivity of hiringteam(A1*A2*A3*A6) (A3*A4*A5*A6)Risk adjustment 10%AtrCalculationIncreased productivity of hiringteam (risk-adjusted)Three-year total: 2,088,828AVOIDED REVENUE LOSS DUE TO OPENYear 1Year 2Year 3242424 42 42 421,2601,2601,260444 55 55 5550%50%50% 773,640 773,640 773,640 696,276 696,276 696,276Three-year present value: 1,731,535 HEADCOUNTOne HR director at a manufacturing companyshared how iCIMS helped their plants continue tooperate. iCIMS allowed their recruiting team toEvidence and data. In a people-oriented business,create a regional and city-based focus which theorganizations must have fully ramped employees tocompany never had before. The director said,meet annual revenue goals. Without employees to“We started looking at the number of applicantsdeliver a product or service, businesses will fall shortby area and state and shifted our focus to targetof those targets. As an example, during the COVID-specific cities for recruiting events.” In addition,19 crisis, manufacturing plants were unable to staffiCIMS allowed recruiters to easily recontact thosetheir shifts around the clock. As an example of theapplicants who never completed the entirebusiness impact, without employees keeping theprocess. By implementing these changes, themanufacturing lines rolling, national restaurant chainscompany was able to keep their plants betterexperienced meat shortages and were not able tostaffed.offer certain menu items.4iCIMS’ customers highlighted examples of the impact Enterprise account executives serve as therevenue engine of a company. Without them,that open headcount has on the bottom line:THE TOTAL ECONOMIC IMPACT OF ICIMS TALENT CLOUD11

ANALYISIS OF BENEFITS sales territories will go unfilled, resulting inRisks. Forrester realizes that factors which drivecompanies failing to meet their financial plans.revenue in an industry can vary widely. Specific riskThere is a national nursing shortage in the US,and the pandemic has only exacerbated this void.considerations for this model include: Healthcare systems are left scrambling to sourcecaretakers who can deliver increasing patientcare demand. A healthcare interviewee said thather organization uses iCIMS to advertise onThe numbers of open requisitions differ byorganization. Revenue metrics such as average deal size of aconsulting project varies by industry.social media. Due to the seamless links to socialmedia sites such as LinkedIn, healthcarecompanies increased their candidate pools morethan 15%. This led to improvements in the easeof staffing shifts and better, more attentive patientcare. One consulting firm explained that without theright individuals on their project bids, they are atrisk of losing business. The vice president of“An average large consulting projectmay generate 10 million dollars ofrevenue and take 500 consultants toaccomplish. By having 500 vacanciesfor a year, we’re losing out on a wholeproject’s worth of revenue.”Vice president of resourcing, industrialconsultingresourcing described it in the following way: “Thecosts for not filling those roles are huge. We needto name individuals on a bid to get the businessin the first place. We use iCIMS to manage thetalent pools for bids because quite often we maynot get a bid if we don’t have the right team.”Modeling and assumptions. For the compositeanalysis, Forrester assumes that: The composite organization has a consultingdivision which

iCIMS 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. iCIMS provided the customer names for the interviews but did not participate in the interviews.