Data-driven recruitment and hiring require the use of recruiting metrics. You would have to keep track of every recruiting metric you could find online, and you wouldn’t have any time for actual recruiting. We’ll be listing the 15 most important for you in this article.
What are the key metrics for recruiting?
These metrics can measure the success of a company’s hiring process and improve its ability to hire qualified candidates. It can evaluate the recruitment process and determine if the company hires the right candidates. These metrics like teamwork interview questions can also use to improve your recruitment process.
They are an essential part of a data-driven recruiting funnel.
Let’s now look at the 15 most important metrics for recruiting.
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Fill in the time
It is time it takes to find and hire new candidates. It is often measured as the time between the approval of a job requisition to the candidate accepting your offer. Time to Fill can be affected by many factors, including the supply and demand ratios of specific jobs and the recruiting department’s speed.
It is a fantastic metric for business planning. It gives a realistic view to the manager of how long it will take to hire and attract a replacement employee.
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Time to hire
Time to Hire is when it takes for a candidate to apply or be approached and then accept the job. It measures how long it takes someone to undergo the hiring process after applying. This metric gives a clear indication of the performance of the recruitment team. This metric is also known as ‘Time to accept’.
Employing candidates available for hire in a shorter time frame often allows you to hire more qualified candidates. It prevents the worst candidates from being hired by companies with limited time to hire. A long recruiting software process is not something that candidates like. It will help you identify the bottlenecks in your hiring process to eliminate them.
The data may show that the time it takes to screen a resume and interview over the phone might belong. It could be a scheduling issue that recruiting teams can resolve by using automated scheduling programs.
Your recruitment funnel is a major influence on this metric. The time it takes to hire for jobs with a simple recruitment process, such as one interview, will be less than if you have an assessment day, phone intake, and three rounds of interviews. It would be best to interpret the below time to hire benchmark.
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Source for the hiring
One of the most important metrics in recruiting is to track the sources that attract new employees to your company. This metric can also be used to track the effectiveness of various recruiting channels. Here are some examples: job boards, company career pages, social media, and sourcing agencies.
You will be able to spend less on channels that don’t work and increase your ROI by having a clear understanding.
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First-year attrition
The key metric for determining hiring success is first-year attrition/ new hire turnover. People who quit within their first year of employment are less productive and often cost more. You can manage or ignore first-year attrition.
Managed attrition is when the employer terminates the contract. Unmanaged attrition is when the employee leaves on their initiative (also known as voluntary turnover). It is often a sign of poor first-year performance or a bad fit within the team.
The candidate has unrealistic expectations and decides to quit. It could be because the job description is inaccurate or recruiters are overselling the company and job.
This metric is also known as the ‘candidate retention ratio’.
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High quality of the hire
A candidate’s performance rating often measures the quality of hire. It indicates the candidate’s first-year performance. High-performance candidates are more likely to be hired. Candidates with lower-performance ratings will not be successful.
Bad hires are those with low first-year performance ratings. Bad hires can result in tens to thousands of dollars in indirect and direct costs for a company. For more information on evaluating these costs, see our article on Human Resource costing.
You can calculate the quality of the sourcing channel by adding the channel through which the candidate sources.
The most important, yet the most complicated, recruiting metric is higher quality.
The quality of the hire determines the Success Ratio. Divide the success ratio by the number of candidates hired. High success rates mean that the majority of hired candidates perform well. However, a low success ratio indicates that you will need to refine your selection process.
This success ratio is used to input the utility analysis. This analysis allows you to calculate the ROI for various selection instruments.
6. Hiring Manager satisfaction
Another indicator of a successful recruitment process is hiring manager satisfaction. The candidate will perform well and be a good fit for the team if the hiring manager is happy with them. It means that the candidate is more likely to be a successful hire.
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Job satisfaction for candidates
The best way to determine if the expectations you set for yourself during the recruitment process are met is by measuring your candidate-job satisfaction. Low job satisfaction among candidates is a sign of poor job descriptions or mismanagement.
You can manage a low score by giving a realistic job preview. Potential candidates will be able to see both the positive and the negative aspects of the job. It gives them a more realistic view.
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Applicants per opening
The popularity of a job is gauged by the number of applicants per job opening. If there are many applicants, it could be a sign that there is a high demand in the area or that the job description is too complex.
The number of applicants for each job opening does not always indicate the quality of the candidates. You can reduce the number of applicants by limiting the job description and adding a few ‘hard’ criteria. It will not result in fewer qualified candidates. It is also possible to focus on candidates who have been qualified in the past.
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Selection ratio
The selection ratio is the number of applicants to hire to the number of candidates. This ratio is also known as the Submittals-to-Hire Ratio.
The ratio of candidates to openings is very similar. The ratio can approach 0. when there are many candidates. When there are many candidates, the ratio approaches 0.
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Hire cost
The cost-per-hire recruitment metric measures the total cost of hiring divided by the number.
Cost per hire can break down into internal and external costs. Compliance, administrative, and training & development are all internal costs. External costs include background checks, travel expenses, and marketing costs.
You can calculate the total cost of recruitment by combining all of them.
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Candidate experience
Candidate experience is an important aspect of recruiting metrics. The candidate experience refers to job seekers’ perceptions about an employer’s onboarding and recruitment process. A candidate experience survey often measures it. This survey uses the Net Promoter Score to help identify the key elements that could improve.
Remember that candidate experience can measure at different stages of the hiring process. Don’t forget about unsuccessful candidates. To better picture the candidate’s experience, you should also measure unsuccessful candidates.
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Acceptance rate
The acceptance rate measures the number and percentage of applicants who accept a job offer. It compares these numbers with the number of accepted candidates. Low rates indicate potential compensation issues. These problems can often encounter for certain functions. It is possible to discuss the pay earlier in the recruitment process to minimize the negative impact of job rejection.
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% of positions still open
You can apply the % of open jobs to specific departments or the entire organization.
If there are many open positions in one department, it could indicate that those positions are highly in demand. That could be due to rapid growth. It could also indicate a shortage of qualified workers for the positions. It can give you valuable insights into current trends and changes in the labor market.
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Rate of application completion
It is a talent acquisition metric. It shows how many applicants completed a job application. The “Applicant Drop-off Rate” can be used to measure the opposite. The percentage of applicants who didn’t complete the application.
Organizations with complex online recruitment systems have a high application completion rate. Large corporate companies require applicants to enter their complete CV manually to be eligible for a job. Web browser incompatibility or non-user-friendly interface.
It is simple to test your application yourself to see if there are any problems. It will allow you to see where applicants may struggle and what you can do to improve it.
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Efficacy of the recruitment funnel
The recruitment process can be described as a funnel that begins with sourcing and ends in a signed contract. You can determine a yield percentage for each step by measuring their effectiveness.
Thanks to advancements in HR tech, the recruiting funnel has seen a significant change over the past few years. The software helps to screen CVs automatically and pick the best candidates. Some companies use video interviews to change submittals or even conduct first interviews.
