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Source ROI in recruiting - what LinkedIn really delivers (and when not)
Three sources, three realities. How to find out which platform actually delivers for your open roles - with real conversion data from German mid-market teams.
The honest source-ROI math isn't 'applications per euro', it's 'hires per euro'. Only the second number distinguishes noise from signal.
The most common source-ROI trap
The usual reporting is 'applications per source'. That number is useless. It grows when you activate a source producing lots of unfit applications. Optimising for 'application volume' optimises for an HR illness, not a success.
The right number is 'hires per source'. Ideally with cost data alongside. LinkedIn Premium runs ~€600-1,500/month per role, Indeed sponsoring ~€5-15/click, referrals free (or €500-1,500/hire internal bounty). Which produces hires?
What the data shows in German mid-market teams
We see three recurring patterns across our pilot customers (n=14 teams, 6-month observation, ~280 hires combined).
LinkedIn: low application volume, high hire conversion. Typically 0.5-1.5 applications per day per role, ~1 hire per 8-15 applications. Cost-per-hire with an active sourcer ~€1,500-3,000. Strong for senior and specialist roles, weak for generic junior profiles.
Indeed / Stepstone: high application volume, mid conversion. Typically 5-15 applications per day, ~1 hire per 50-80 applications. Cost-per-hire ~€400-1,200. Strong for junior and volume roles.
Referrals: low volume, very high conversion. ~1 hire per 3-5 applications. Cost-per-hire dominated by referral bounty - effectively ~€500-1,500. Strong in any role - but only scales until the network is exhausted.
How to measure this in your team
Three prerequisites. First - every application carries a source (required field in the application form or on manual entry). Second - you log hires with the source attached to the application. Third - you look at the numbers over a 6-12-month window, not a quarter.
KI BMS handles the first point by default and gives you the per-source funnel in Reports. You just need the discipline to attach a source to every application - which the default intake dialog does for you.
The most common strategic mistake
Teams seeing poor conversion on one source switch it off. Sometimes right, often wrong. A common case: LinkedIn delivers only 1 hire per 12 applications - but it's the only source delivering senior hires. Switching LinkedIn off for junior-volume roles and on for senior roles solves 80% of the sourcing problem.
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