When the conversation turns to hiring your first (or next) data privacy professional, the inevitable question from the CFO is: "What's the return on investment?" For too long, the answer has been a defensive one: "We need to avoid GDPR fines."
While regulatory compliance is still a critical driver, it’s a negative and incomplete ROI case. Framing a privacy role solely as a cost of compliance or an "insurance policy" against fines severely undervalues its true potential. In today's data-driven economy, a skilled privacy professional fulfils an important strategic role and adds tangible value across the whole organisation.
At Leonid, we help companies build the business case for top talent. Here’s how to quantify the ROI of your privacy hire, beyond the fear of penalties.
The Tangible ROI: the numbers you can calculate
This is the language of the boardroom. While some benefits are strategic, others can be directly measured and monetised.
1. Direct cost-savings (beyond regulatory fines)
Yes, avoiding a €20 million fine is a powerful argument. But the financial hits are more varied:
Reducing legal and consulting spend: How much are you spending annually with outside law firms on privacy matters? A single in-house counsel can handle 80-90% of day-to-day issues, from contract reviews to data subject access requests (DSARs), leading to a direct and significant reduction in legal bills.
Mitigating data breach costs: The average cost of a data breach is millions of dollars. A privacy pro implements preventative measures - data mapping, access controls, vendor risk management - that drastically reduce the likelihood and potential severity of a breach. This is a direct risk mitigation with a clear financial value.
Operationalising DSARs: Manually handling data subject requests is a huge drain on IT and legal resources. A privacy hire will streamline this process with tools and policies, saving hundreds of person-hours per year.
2. The business-enablement ROI: driving revenue and efficiency
This is where the privacy professional transitions from a gatekeeper to a growth accelerator.
Accelerating deal velocity: A sales team waiting weeks for an external lawyer to review a data processing agreement (DPA) is a sales team losing deals. An in-house privacy expert can turn these around in hours, keeping the sales pipeline moving and directly contributing to revenue generation.
Unlocking new markets: Want to expand into the EU, California or Brazil? Each has complex privacy regulations. A privacy hire navigates these landscapes efficiently, creating the compliance frameworks that make market entry possible and profitable. They remove the legal blocker to expansion.
Building trust as a differentiator: In a world sceptical of how companies use data, a strong privacy posture is a competitive advantage. It can be the deciding factor for an enterprise B2B client choosing between you and a competitor. This "trust premium" directly impacts customer acquisition and retention.
3. The strategic ROI: create tangible value from the intangible
Some of the most significant returns are foundational; building long-term, sustainable value for the company.
Fostering a culture of innovation (safely)
Your R&D and product teams want to innovate with data, AI and machine learning. Without a privacy expert, this innovation is either reckless or paralysed by fear.
A privacy professional empowers these teams by building "Privacy by Design" frameworks. They provide the guardrails that allow engineers to build innovative products confidently, knowing they are compliant and ethical from the start. This prevents costly post-launch refactoring and protects your brand’s reputation.
Enhancing brand equity and reputation
What is the value of your company's reputation? While hard to quantify, it is your most valuable asset. A single privacy misstep can destroy decades of built-up trust overnight.
Your privacy hire is the steward of that trust. They ensure your marketing is respectful, your data practices are transparent, and your brand is seen as a responsible custodian of customer data. This fortified reputation attracts customers, investors, and top talent.
Future-Proofing the Business
Privacy legislation is not slowing down; it’s accelerating. AI-specific regulations are on the horizon. A dedicated professional doesn’t just react to today’s laws, they anticipate tomorrow’s. This proactive approach prevents costly, panic-driven overhauls and ensures the business is resilient and adaptable in the face of regulatory change.
Building your business case: a practical framework
When you propose the hire, move beyond the job description and present a one-page ROI summary. This should include the following:
Cost Savings: Reduction in outside legal spend by [Estimated %].
Risk Mitigation: Reduced financial exposure from breaches & fines.
Revenue Enablement: Faster sales cycles and support for [Name of New Market] expansion.
Operational Efficiency: Automated DSAR processes saving [X] person-hours.
Strategic Value: Enhanced brand trust, enabled safe AI innovation, and future-proofed compliance.
The bottom line
A privacy hire must be presented as a strategic investment. The ROI is clear: they save money by reducing external costs, make money by enabling business growth, and protect value by safeguarding your reputation and future.
The question is no longer "Can we afford to hire a privacy professional?" The strategic question is, "Can we afford not to?"
Are you ready to build a business case for a privacy leader who will deliver measurable ROI? Leonid Group specialises in connecting forward-thinking companies with the data privacy talent that drives both compliance and commercial success.
Contact Phil Redhead, head of legal and data privacy recruitment, today, to find out how we can help secure your next data privacy hire.