Recruitment metrics can play a vital role in making your hiring efficient and effective. Tracking the right bit of your hiring process will not only allow you to hire the right candidate but also make hiring seamless for your organisation. With that said, if you go about maintaining and recording every recruitment metric you come across, you’d be doing just that.
But before we go any further, let’s get clear on what recruitment metrics really are.
What Are Recruitments Metrics?
Recruitment metrics are set standards that help measure and manage the hiring process. They are aimed to improve the process. For talent acquisition leaders, company chief and senior executives, these metrics come in handy while building the value of the brand.
All progressive companies are not moving towards data-driven hiring to comprehend which functions of their hiring process are working well, and which needs to be worked upon. It also provides insights around the brand’s perception among prospects.
So, it is imperative you add standards of measurement to your hiring process. After all, hiring is one of the most crucial aspects of the business. As, Lawrence Bossidy, Former COO of General Electric, likes to put it:
“Nothing we do is more important than hiring and developing people. At the end of the day, you bet on people, not on strategies.”Lawrence Bossidy, Former COO of General Electric
But now the question is- Which recruitment metrics to choose?
There are so many of them available at your disposal that recording them all would be practically impossible. To make things easier for you, we have listed down 5 recruitment metrics that you must make a part of your hiring process. We are not dissuading you from adding some more to your list. But you must have these on the table at all times.
Time To Hire
Many recruitment leaders also like to call this one as “Time to Accept”. It essentially is the number of days from the day you approached the candidate to the day he/she accepted the offer. This metric gives you a clear indication of how much time does it for a candidate to actually get through all the levels of your hiring and complete all the required formalities.
It is directly linked to the performance of the recruitment team. You can even divide this metric into sub-sections too. There you can record the time taken for the candidate’s application to move forward at each level/round of your hiring. It will let you know the exact function of your hiring which is underperforming.
According to a Glassdoor study, the average time to hire for companies is 22.9 days. We suggest a decent goal to target is to limit the time to hire between 20-25 days.
Applicants Per Opening
According to Glassdoor for Employers, every corporate job opening, on average, attracts 250 résumés. The number of applicants you get for an opening is a direct indication of your brand’s perception.
If you are receiving a lesser about of applications, it is an indication that candidates may not be attracted to the profile or the job. In such a scenario, it is imperative that you invest in employer branding. Organizations that invest in employer branding are three times more likely to make a quality hire, according to the Brandon Hall Group.
At the same time, receiving too many applications is also not a good indicator. If you are receiving plenty of applications but most of them are irrelevant, your job description is flawed. You have to be very clear about the job requirements in the description. Lest filtering out relevant applications from this heap would unnecessarily increase the time and effort required to make the hire.
Offer Acceptance Rate
This is a comparison between the number of candidates who accepted the offer and the number of candidates who were offered a job. A low rate on this one is again a problem for you to work on.
And MRI network study revealed that two of the most common reasons for offer rejections. They are:accepting another offer (47% of the time) and the pay is lower than expected (25%). Both of these reasons are indicative of compensation-related issues. The best way to combat it to mention the pay in the job listing itself. You should also enquire the candidate about his salary expectations before making the offer.
Cost Per Hire
It is fairly easy to calculate the cost per hire. It is essentially the total recruitment cost divided by the total number of hires. What makes this a little complicated though, is to calculate the total recruitment cost.
Recruitment cost is the summation of all your internal as well as external costs spending on hiring. Internal costs here would include everything from the cost of man-power (time spent * average wage/per hour) to cost of the lost productivity. On the other hand, external costs range from recruiting agency fee and advertising costs to candidate expenses and training costs.
Gauging whether this cost was worth it depends on the quality of hire, which is the next recruitment metric we are going to talk about.
Quality Of Hire
It is important to understand the quality of the hire before deciding upon whether he was worth the cost. As Joe Kraus, the President of Lime likes to say,
“The cost of hiring someone bad is so much greater than missing out on someone good.”Joe Kraus, the president of Lime
According to LinkedIn, quality of hire is one of the most important recruitment metrics to recruiters. Quality of hire is measured using two factors:
Measuring the number of hires who left the company as compared to those who stayed. Ideally, one should measure the first-year attrition rate.
Measuring satisfaction can get subjective to the person supervising the new hire. But if you specify standards of measuring satisfaction it can be recorded objectively as well.
Some standards include:
- Time to productivity: Time taken by the new hire to reach his full productivity
- Supervisors feedback: Scale based rating of the hire’s performance.
In The End
It is crucial not just to record this data but also be able to articulate it. And make positive changes to the hiring process. Once, you are able to narrow down the key pain points of your hiring process, work on them. Your hiring would become effective in no time.
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