The performance of your recruitment process, like any other business strategy, should be measured and assessed on a regular basis. If your talent pipeline is overflowing, your candidate experience sublime and your hiring process runs without any hiccups, read no further.
The chances are, however, that your talent acquisition strategy isn’t as perfect as you would like it to be. The good news is, that with these six essential recruitment metrics, your company can assess the effectiveness of your hiring process and put steps in place to improve it.
Volume of candidates
Quantity doesn’t necessary equal quality. An overwhelming number of applicants for your vacancy could be an indication that you’re attracting the wrong type of candidates. Analyse your industry benchmark for the types of jobs you advertise and benchmark it. That way you will know if the number of candidates applying to each vacancy is off the mark or about right for your business. An effective recruitment management system will enable you to achieve this. If the quality is below par, take a look at both your job criteria and your overall brand message. Are they designed to attract the calibre of candidates you seek?
For a successful talent acquisition strategy, you need to understand which point your candidates are flowing into your recruiting software from. Typically, sources may include your careers website, social media platforms, employee referrals, job search sites and direct advertising. Applicant tracking software will provide analysis on which source is the most effective for your company, in terms of quality and quantity. If job search sites are only yielding candidates who lack your desired skills, turn your attention to the areas that produce quality. For every vacancy you should understand:-
- The number of applicants from each source.
- The number of qualified applicants from that source.
- Where your short-listed candidates came from.
- How the successful candidate found out about your vacancy.
Time to hire
If you don’t know exactly how much time it takes from the moment you post your vacancy to the day your successful candidate starts you have a problem. It’s a fact that organisations with the strongest talent management processes have faster hiring times compared to those without. As some positions are naturally more difficult to recruit for compare your time to hire across a range of different roles. Your recruitment management system will provide you with the insight you need for this analysis.
Cost of hire
Your cost-per-hire encompasses a range of factors. These include, for example, the cost of advertisements, monitoring and maintaining social media pages, HR administrative costs for issuing contracts and carrying out background checks - as well as the time spent reviewing applications and interviewing candidates. What is your recruitment software telling you? With the average cost-per-hire estimated at £30,614 by Oxford Economics, understanding this metric is vital to your business.
Quality of hire
The easiest way to assess your quality of hire is to review your staff retention levels. Low staff retention rates increase your hiring costs in two ways. Firstly, in the time taken to replace the departing employee and secondly, the effect on productivity. If your company seems to be continually recruiting for the same role, you may need to analyse your metrics. Pay special attention to those relating to candidate selection and employee engagement; larger organisations will also need to understand retention rates in individual departments. Effective recruitment management software will again provide comprehensive information on these issues.
This metric is overlooked by some employers but it impacts the morale of your existing team so can you really afford to ignore it? Take a look at your last few hires. How many offers were needed before you filled the position? What was the reason for the rejection of your job offer? The answers to these questions will enable to you fine tune your overall hiring process.
Do you agree with our recommendations in this article? What metrics have proved most effective in improving your talent acquisition strategy?