As organisations continue to strive for the most qualified personnel, Human Resources (HR) managers and recruitment teams are turning to data-driven recruitment as a way to streamline the hiring process. Data-driven recruitment relies heavily on recruitment metrics, which allow for an evaluation of the overall efficiency and success of the recruitment process. With the help of recruitment metrics, HR managers and recruitment teams are able to ensure they are using their resources in the most effective way possible to acquire the best talent available.
HR professionals can use these metrics and data analytics to attract talent and develop employee retention strategies.
Recruitment metrics also help talent acquisition teams increase business value and plan strategic workforces.
In this post, we’ll look at the top eight recruitment metrics you should be tracking to make informed hiring decisions.
This metric is vital for Human Resources (HR) managers, as it provides an indication of how long it will take their team to fill any open positions or replace employees who have left their role. It is therefore an invaluable tool for HR teams in ensuring that their organisation is able to maintain an adequate workforce.
The number of days it takes to find and hire a new candidate is referred to as the time to fill.
It is typically the time elapsed between the approval of a job requisition and the candidate accepting your offer.
The rate of recruitment is impacted by a variety of elements, such as the availability of suitable candidates, the needs of the sector, and the efficacy of the recruitment teams in identifying and securing the right talent. All of these factors play an important role in ensuring that the hiring process is successful.
The terms ‘filling time’ and ‘hiring time’ are frequently used interchangeably. They are, however, entirely different recruitment metrics.
The time to hire metric measures how quickly a candidate is screened, evaluated, interviewed, and hired for a job.
It reflects the effectiveness of the hiring process as well as the overall candidate experience.
This recruiting metric is affected by the role type, industry, and hiring process at your company.
This is one of the most important recruitment metrics because it indicates a new candidate’s long-term value to your company’s success.
According to the LinkedIn Global Recruiting Trends Report, the most significant Key Performance Indicator (KPI) in the recruitment process remains the quality of hire. This KPI is calculated by assessing a variety of factors, such as the employee’s job performance, their ability to meet deadlines, and their engagement with the company culture.
Metrics for sub-recruitment: Employee Involvement
This metric qualitatively and quantitatively describes an organisation’s relationship with its employees.
Metrics for sub-recruitment: Time-to-Productivity
This metric measures the new employee’s time to full productivity. Assess new candidates based on how quickly they reach certain productivity levels.
Metrics for sub-recruitment: Job Performance Indicators
These are the reporting manager’s performance reviews for a specific employee.
Metrics for sub-recruitment: Cultural Compatibility
This metric is determined by the 360-degree ratings given to new employees by their coworkers and managers.
The US Department of Labour states that a miscalculation in the hiring process can be costly; it can incur a loss of up to 30% of the employee’s potential first-year earnings. Consequently, it is imperative for companies to take the necessary steps to assess the quality of new hires in order to ensure the success and growth of their organisation.
Source of employment
This recruitment metric shows where your new hires are coming from.
This metric can help to identify which sources and channels are the most effective in providing the highest calibre of candidates for any available vacancies, thereby yielding a notable return on investment for the business.
In order to identify the most productive channel for recruitment, it is essential to analyse a variety of sources, including social media advertising, referrals, recruitment agencies, job listing platforms, paid advertising platforms, and the company’s own careers page. Taking the time to thoroughly examine each of these potential recruitment channels will help to ensure the most successful outcome.
This metric is a useful tool for recruitment purposes, as it measures the ratio of applicants to hires for a given position. By assessing this ratio, it is possible to gain insight into the efficacy of the recruitment process, as well as to identify potential areas of improvement.
This text describes the benefit of how recruiters can use the hiring process to gain insight into how much effort should be put into the vetting process. Utilising the hiring process helps recruiters to determine if additional criteria should be implemented to make sure the most suitable candidates are identified.
When the applicant-to-hire ratio is consistently high, for instance, 100 applicants for a single position (100:1), recruiters can leverage pre-employment tests and data-driven recruitment practices to improve efficiency and streamline the hiring process while selecting the most qualified candidates. Utilising these tools can significantly reduce the time and resources required to identify and onboard the best talent.
This is an important hiring metric that indicates the effectiveness of the recruiting process and aids in ROI evaluation.
The average cost per hire is the amount of money spent on recruiting an employee. This metric is useful for tracking your recruiting budget.
CPH = (Internal + External Recruiting Costs) / Total number of hires
At CPH, we take into account a wide range of expenditures, such as recruitment costs, induction costs, travel expenses, hardware and software, administrative costs as well as benefits, referral incentives, job board fees, payments for paid advertising, and agency fees.
Rate of attrition
The attrition rate, also known as the churn rate, is the rate at which employees leave your company in any given time period.
Attrition rate = number of employees who have left the company / average number of employees over a given period
Recruiting and retaining top talent is a key priority for many organisations, as high attrition rates can be quite costly in terms of money and resources needed to bring in and onboard new hires. The financial and logistical implications of having to continually replace personnel can be significant. Therefore, it is important for organisations to make sure they are doing everything they can to attract, retain, and develop their top talent.
In order to gain insight into the levels of satisfaction of their employees, companies should conduct assessments to measure this metric. Doing so will enable them to create effective employee retention strategies.
Job satisfaction among candidates
This metric serves to measure the candidate’s experience with the recruitment process, as well as their satisfaction with their current role in the organisation. By evaluating this metric, we can gain insight into how successful the recruitment process has been, and whether the candidate is content with their current role. This metric is a valuable tool for assessing the success of our recruitment efforts.
The Candidate NPS is a key indicator of candidate job satisfaction (Net Promoter Score.)
According to their past experiences, this indicator helps Human Resources professionals gauge the probability that newly employed individuals would endorse their organisation to a friend or associate.
It is essential to evaluate a job applicant’s background to ensure that the organisation is bringing on the most qualified personnel. This entails ascertaining whether the position is in line with the job seeker’s expectations and if the recruiting team is representing the role effectively. By doing so, the organisation is securing the best talent available.
So, why should you pay attention to recruitment metrics?
Without a doubt, attracting top talent is critical to an organisation’s success.
It is imperative for Human Resources professionals to start taking advantage of data and analytics in order to increase the performance and efficiency of their recruitment strategies, enabling them to recruit the most suitable candidates in the shortest amount of time.
Using data-driven recruitment can help recruiters reduce hiring costs while increasing efficiency.
Regularly tracking recruitment metrics and utilising the data collected can give your organisation a strategic edge and enable you to make informed hiring decisions that are in line with your business objectives, thus contributing to the growth of both your human resources and organisation as a whole.