So, you’ve made resume screening easier, streamlined interviews, and improved onboarding for new recruits. How can you be sure your changes are meeting or exceeding your expectations? The latest key performance indicators (KPIs) measure recruitment effectiveness in your organization. As a result, you can see what’s working hiring-wise and continue to fine-tune your processes. Here are some of the best metrics to track:
Time to Fill
Time to fill refers to the amount of time it takes to find and hire a new job candidate in your organization. This metric, usually measured in calendar days, tells you how long it takes to fill a job role. It’s one of the best ways to understand the speed of your hiring process.
Measuring time to fill varies between employers. However, a common way to use this metric is to calculate the number of days between creating a new position or deciding to fill an existing role and a candidate accepting that position. For example, it might take 30 days from creating a role to someone accepting it and agreeing to work for your company.
Like all the metrics on this list, recruiting software, such as a good applicant tracking system (ATS), tracks time to fill for you. This means you don’t have to manually count days yourself!
Quality of Hire
This metric assesses the long-term performance of new hires. Like time to fill, you can measure the quality of hire in different ways. There are also many methods for determining the “value” that new employees bring to your organization. However, most employers track the total net value someone adds to their company.
So, what is net value? In a recruitment context, it typically refers to things such as productivity, revenue, and business growth. Thus, if someone increases productivity, profitability, and long-term performance, it’s clear they generate a high net value.
Quality of hire is a great metric for determining whether your talent acquisition processes are successful. If, say, new hires add significant net value to your organization, you’re clearly doing something right!
Candidate Satisfaction Score
Ever wonder whether job applicants actually like your recruitment processes? Candidate satisfaction scores can reveal this information. This metric, known as CSS for short, measures how likely employees would be to recommend your organization to other people based on their experiences during different recruitment stages, such as interviews and onboarding.
CSS is quite similar to Candidate Net Promoter Score (cNPS). However, don’t get these two metrics confused! The former refers to how likely someone would recommend your company to others. The latter refers to whether someone had a good experience during your recruitment process. Similar, yes, but totally different!
You can gauge CSS in different ways. However, the easiest method is asking job applicants a question that’s worded similarly to the following:
On a scale of 1-10, how likely would you recommend our company to friends and family based on your experience so far?
You can ask this during or after hiring, perhaps in a survey with other questions or as a standalone question. Most employers send out a survey via email; however, some might print one out and ask applicants to fill it in at some point during their recruitment cycle.
Source of Hire
Which recruitment channels led to you hiring talent? Source of hire can tell you exactly that. This metric reveals which channel encouraged a candidate to apply for an open job role with your organization. That might be a job board, job agency, career website like Monster or Indeed, a referral, or something else entirely.
Once you know which hiring sources are most successful, you can invest more money into these channels and spend fewer resources on those that don’t lead to productive recruitment outcomes. For example, if Facebook ads filled the most job positions, you’ll obviously want to devote more resources to this source.
Cost per Hire
Cost per hire, also known as CPH, reveals how much it costs to fill a position. Employers track this metric in various ways. However, most determine the amount of money they spend to hire a new employee, including the cost of using an external recruitment agency and hiring technologies such as an ATS.
To work out CPH, you’ll need to know how much you spend on recruiting costs and how many people you’ve recently hired. Again, recruitment tools with data analytical features can help you here, removing the need for manual calculations.
Takeaway: Why Using These Metrics Benefits Your Company
Tracking KPIs like time to fill, quality of hire, and cost of hire lets you measure recruitment effectiveness in your business. As a result, you can learn whether your talent acquisition team is doing the right things and focusing on the right tasks.
Add more metrics to your mix for even more successful hiring outcomes. These may include offer acceptance rate, new hire turnover rate, and candidate callback rate. However, you’ll only want to track a handful of KPIs first so you don’t overwhelm your HR department and overcomplicate things! Less is definitely more when measuring the success of your recruitment workflows.
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