We track and record data on almost everything in today’s business world, and your recruitment efforts should be no exception.
Since we’re now just a little past half way through the year, it’s the perfect time to review exactly how successful your hiring has been, how well the talent you on-boarded has nurtured, and see just how your metrics stack up.
Here are 5 Key Recruitment Metrics you should measure and why:
1. Measure cost-per-hire
Measuring the dollar value of HR efforts is one of HR manager’s biggest challenges — how can you prove that the acquisition of an employee has impacted the business by X dollar amount or resulted in Y% growth in the business?
Well, you can start by building a business case by measuring your cost-per-hire, or benefit-per-hire. Calculate the ROI and demonstrate that hiring top performers has a significant business impact over hiring an average person in the same job.
Along with measuring cost per hire, measure the cost of a bad hire! Show that great hires are more productive than average hires and calculate the dollar difference between them.
2. Measure quality-of-hire
The most important metric is the quality of hire, which means the relative success rate of new hires on the job. What % of those hired pass the probation period? How many of these leave?
Be sure to measure the accomplishments of those hired against what needs to be done. The point of this metric is to stack up your post-hire’s contributions and measure the success of your recruitment process.
3. Measure productivity
After the quality of hire, the most important indicator of great recruiting and retention is to improve workforce productivity. It’s essential that managers monitor productivity in order to determine the real ROI of recruiting.
Periodically measure your workforce productivity by comparing the ratio that is generated when you divide the number of employees into the firm’s total revenue. Implement actions to improve that revenue-per-employee ratio through great hiring and retention.
Lastly, develop strategies that attract and retain top employees with the goal of maximising overall company productivity.
4. Measure time-to-hire
Track the number of days, weeks, or months it takes from the start of the process to the time an offer is accepted. The longer it takes to fill a role, the higher the cost of recruitment.
The best recruiters find new talent fast, but that is only half the equation. If your line managers are consistently unavailable for interviews or cause problems for the recruiters, then improvements must be made. Top performers want to feel wanted and will not tolerate unreasonable delays.
5. Measure “candidate satisfaction”
Periodically survey a sample of applicants and new hires to see if they are satisfied with the recruiting process. Get feedback about their experience and whether you met their expectations. Then examine your present recruitment process and identify areas where you can bridge the gap and meet candidates expectations.
It’s also a good idea to survey successful candidates after two or three weeks of settling in (while it’s fresh in their minds) and get an idea of how they feel about the on-boarding process, and whether their expectations of the job and work environment were met.
6. Measure Sources of Hire
In addition to measuring success, it is important that you measure the actual sources that yielded top performers.
While it’s important to record the number of referrals, it’s also a good idea to take a count of the number of referrals that do take the job. If the percentage is low, it could indicate that there needs to be better communication between the referrer and the hiring manager, or the job role advert.
Or, a not so obvious reason may be that the recruiter/ referrer could be doing a poor job at vetting candidates. Nevertheless, it’s a good idea to measure what method works best, so you can capitalise on the best sources for your next hire.
7. Time to productivity
We mentioned above the importance of measuring the workforce productivity, but we can’t forget to account for time to productivity as well. For most jobs, a lot of training is on the job the jobs.
If we’re able to measure the time to productivity levels of our employees and implement strategies to decrease this time frame, we’ll get a more productive team, fast.
Recruitment processes can always be improved. By measuring these key metrics and translating these stats to actionable statements, you can alter your recruitment process to improve your quality of hire and efficiently manage your resources.