The main goal with recruiting is to bring the best available talent on board to help grow your organization. This means you must take the right steps ensure your recruiting and hiring efforts reflect the standard of excellence you’re seeking.
Today, smart business processes are fueled by data. It objectively examines your performance, revealing any trends or events that can point you in the right direction. With that said, there are certain metrics to continually improve your recruiting process. A library of recruiting metrics allows you to evaluate the strategic work each member of your recruiting team is completing. It also helps recognize opportunities for improving inefficiencies and removing weaknesses. Leveraging recruiting metrics will allow you to take a results-based, data-driven approach to decision making, which will lead to a more productive and effective talent team.
First, you need to define the metrics you’ll be tracking. Below are six useful recruiting metrics and data points:
Time-to-hire: Once a candidate has accepted the offer, getting the person on-board quickly is key, especially if knowledge transfer needs to occur before the current employee leaves the company. To gain valuable insight into time-to-hire metrics, you can track this by:
- Time from search kickoff to accepted offer.
- Number of hours spent on each requisition.
- The breakdown of time-to-hire (i.e. the intervals of time from when a candidate was sourced, to when they were screened, to when they were interviewed, etc.). This will also allow you to discover any inefficiencies in your overall process such as a delay in the interview process, etc.
Source of hire: Your company may have a limited budget to spend on jobs ads on such online platforms like Monster or LinkedIn or may have limited resources to set up a booth at a job fair. If you keep track of where your top candidates originate (LinkedIn, referrals, college job fairs, etc.) you will be able to measure the effectiveness of recruiting sources over time. As a result, you can then make further investments in those sources that provide the highest ROI.
Retention rate: Following the retention rate of new hires can help you improve recruitment and employee retention policies.
Quality/productivity of hire: This metric is usually tough to measure and can be based on subjective feedback. However, tracking it will allow you to stay updated on new employees’ successes.
Cost per hire: Just as a sales team measures new customer acquisition costs, you can weigh the financial investment your company must make to attract and recruit new hires.
Applicant satisfaction: Create a standardized survey for new hires so you can collect feedback that will assist in improving the overall candidate experience in the future.
Once have organized an appropriate amount of data, it’s time to dive in and see where you can make some improvements. The important thing is that you begin collecting the data as soon as you can so that you can begin using it to work smarter – not harder – and improve your hiring process to truly develop a talented workforce.