What is the Competitive Advantage of CX?

Three points highlighting how investing in CX can enhance an organization’s competitive advantage.

July 09, 2017

Like every strategic business move, the decision to invest in candidate experience (CX) is one that should be made at the executive level. That’s why it’s critical that recruiters and hiring managers fully understand the business case for investing in CX. The following three points highlight how investing in CX can enhance an organization’s competitive advantage.

  • A good CX allows for a more efficient use of recruiters’ time and as a result, saves costs. Today’s online application processes are usually lengthy and require a significant amount of data input. Even when an ATS is in place, the recruiter has to sort through a large number of candidates before finding a handful of potential matches—and then follow up with a call and one or two interviews. Designing a CX that not only obtains relevant factual data about applicants, but also uses technology to determine aptitude and cultural fit can greatly reduce the amount of time recruiters spend on the selection process, which results in considerable cost savings on labor.
  • A good CX provides data-driven insights that can be used to fine tune the application process. As Andrew Kucheriavy shares in his Forbes article “Good UX IS Good Business: How to Reap Its Benefits,” during Amazon’s first 12 months, the company’s investments in customer experience were 100 times greater than its advertising spend. This allowed the company to perfect its user experience and make shopping on its platform not only affordable, but also convenient and engaging. Similarly, CX can be designed to collect demographic and behavioral data about candidates. Analyzing that data and using the resulting insights makes the process smarter and allows for continuously improvement of the CX. In the event employers have access to industry-wide statistics, they can also benchmark their CX performance against that of their competition and adjust accordingly in order to improve their competitive positioning.
  • A good CX increases the quality and number of applicants. A good CX delivers a customized application process that’s tailored to attract a specific candidate persona. Instead of using dry, tedious tests and forms to determine whether applicants match that persona, it deploys gamification tactics and other interactive features that keep them engaged. In addition, it uses bots to inform them of their progress—something that’s crucial, since according to Digital Telepathy, almost 70 percent of consumers give up if they believe a company doesn’t value them.

Research by Forrester shows that on average, a $1 investment in UX yields a $100 return. Of course, this pertains to e-commerce. Yet if you consider the average value an employee brings to an organization, it’s conceivable that the ROI on a good CX could be much higher. That’s why it’s critical for companies to invest in the creation of digital recruitment processes and applicant journeys that not only provide the best possible candidate experience, but also reduce the workload for recruiters and hiring managers so they can focus on adding value at those touch points where human input is required.

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