As the recruitment industry becomes increasingly competitive year after year, it’s becoming more apparent to hiring managers that they need to measure and track recruitment data in order to optimize their results and keeps hiring costs reasonable. In fact, about 70% of hiring managers agree that becoming data-driven is the key to more accurate recruitment tactics and planning for long-term business impact.
HR efforts cost roughly around 28% of a company’s total operating expenses; that’s a lot of money at stake. As a business owner, you will want to pay close attention to your metrics and be smarter with recruitment strategies moving forward.
Luckily, this isn’t too hard. You just have to know what you’re looking for.
Recruitment metrics are data used in tracking hiring success rates and optimizing the ongoing process of hiring for a company. Just like any data, its real purpose comes when you understand the value they can give to your business. When used correctly, you can begin to evaluate your recruitment processes and observe if you’re bringing in the right people that can elevate your company’s success.
Whether you’re starting from scratch or would like to fine-tune your existing metrics, here are the top parameters you should keep an eye on to improve your hiring techniques.
Application Completion Rate (ACR) is the number of candidates who completed the application process divided by the total number of people who simply initiated the process of applying for a vacant position in your company.
This metric can be telling about your recruitment process. The best talents know that they have a lot of options on their plate, and therefore won’t waste too much time on hiring pages that lack the information they are looking for or that ask for too much. Application processes are part of the overall first impression of a company. Make yours count. If you have a low ACR, it’s time to determine what’s lacking or broken in your application pages.
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Time to Fill metric refers to the number of days it takes to fill an open role−starting from the publishing of the job opening to the successful hiring of a candidate.
This will outline the supply and demand ratios for the different vacancies in your company and give your HR team a realistic timeline when looking for a new hire. If you go beyond the average time to fill window for a particular position, it may be time to revisit your efforts because something may be wrong. If you go under, consider reviewing your strategies and find what influenced the efficiency of recruitment.
This is the pool of channels you usually promote your job ads on. Use this metric to identify which ones are most effective.
Be mindful about where you get the greatest number of applications from as well as the quality of hires you receive per channel. This will help you focus on the places that work best—whether it’s your company’s social media pages, the career page on your website, recruitment process outsourcing agencies, and more.
READ THIS RELATED ARTICLE: Step Up Your Recruitment Marketing, Here’s How
First-year Attrition measures how many candidates left after their first year at work.
You’re already familiar with the enormous company costs when it comes to hiring candidates—which is why it’s hurtful to the company if a new hire leaves immediately after the resources it took to fill the post.
First-year attrition can either be initiated by the company, such as employee termination, or by the employee, referred to as resignation. Keeping track of these metrics can help measure the quality of hires and find management errors that the company could improve in the long run.
Cost per hire is measured by the total cost invested in hiring, divided by the number of hires.
It’s wise and necessary to have average figures for your cost per hire. There are a lot of factors included in computing this number, including internal and external costs. These fees will not only keep you from going overboard but clue you in on which areas you can bump up the budget for and improve. Your cost per hire should tell you that you can maximize efforts and funds in signing a top candidate at the shortest possible time.
This indicates the number of people who applied to a specific role.
The percentage can clue you in on the popularity of a particular position. Take into consideration the backgrounds of the applicants, too. If it’s too varied, this could suggest that the description of the job ad may be too broad—something you may want to fix.
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This is the percentage of offers accepted by the candidates you gave the position to. It’s calculated by dividing the number of acceptances over offers made.
On average, how many people accept your job offer? A low rate could indicate problems with compensation and benefits, and that these candidates are finding better offers elsewhere. While there will always be some candidates who will turn down an offer, you want to minimize these instances and close vacancies at faster rates.
Start paying attention to the right hiring metrics. It can be challenging for any new or even seasoned company to find their footing in the recruitment landscape. Recruitment process outsourcing companies like SuperStaff help to fill in your missing pieces so you can focus on growing your team with the most suitable hires for your company.
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