It is quite obvious you may not be able to understand what works for your business and what doesn’t if you are not measuring the metrics. Similarly recruiting metrics are the solution to evaluating your recruitment process performance. It is quite significant to have assessable recruiting objectives and precise data that enables you to track your key performance and let you know your position in the business, particularly when you are striving to make game-changing hires. Having said that, let’s have a look at a few very crucial recruiting metrics important to your recruiting process.
- Time to Fill
This recruiting metric discloses how quick your hiring process is and summarizes how long it can take for a recruiter to fill an open position from the time a job application was ordered. The diverse variables that are used into this calculation range from location and employer brand to skills and talent base.
Precisely, the time to fill contains the total number of days between the time an open position is advertised and the time a candidate is brought onboard. This recruiting metric highlights the productivity of the recruiter and imitates the effectiveness of the recruiting process. Diving deep into this recruiting metric will tell the following significant things:
- You will know whether you are hiring the right candidate.
- Your proficiency and speed when you recruited the right fit.
- What the current performance holdups are in your sourcing process.
Recruiting the perfect candidates is crucial to the future success of your organization and calculating this recruiting metric will keep you from making mistakes.
- Cost Per Hire
The cost per hire calculates the regular expense acquired on filling a position from sourcing to onboarding. For large businesses, the recruiting cost has a huge impact on the end result and for small companies, it can be a definite success or definite failure for their annual budget. This recruiting metric has a direct connection with the time to hire. For example, the sooner a vacancy gets filled, the lower will be the cost of talent acquisition.
- Quality of Hires
The applicant quality is calculated in terms of the percentage of applicants who have accepted your offer and those who are retained, divided by 2. The subsequent percentage shows the key performance of the recruitment team in terms of high-quality applicants who are loyal. The quality of hire is the discrepancy between more applicants and top choice applicants. This recruiting metric highlights whether the recruiters having a wastage of their valuable time and effort while looking for top talent or really having optimal utilization of the accessible resources.
- Source of Hire
This recruiting metric tells where the majority of your applicants are coming from – job boards, agencies, professional networks or employee referrals. An applicant tracking system provides a thorough analysis of the number of applications received from each source along with how many applicants were shortlisted, selected and accepted the offer. This important data can be useful to make the most of your efforts on high-performing sourcing and close the ones which are not producing desired outcomes. This data has also an important role to play in assisting the recruiters to plan and budget the recruiting process for optimized conversions.
- Conversion Rate
This recruiting metric offers a direct analysis and comparison among the quantity of the applicants who have been offered a job and those who have accepted the offer. For example, if your offer acceptance frequency is low, there is a high chance that your job offer may not be competitive. Reconsider your offer with reference to salary, perquisites or development opportunities to prevent your applicant from taking into consideration your competitors. Given that your job offers have been refused because of salary and you don’t have the resources to compete with a better package, then come up with something else such as flexible work hours, free food or remote work.
- Attrition Rate
An increased attrition rate is a costly matter as the price of employee revenue can be as high as 200% in the case of an extremely qualified professional. If you have a high attrition rate the trouble could be an ambiguous job description or probably the job role is less appealing for loyal applicants. Therefore, if you are continuously hiring not due to your organization’s development but the reason is your employees are not retained, then it is time for you to analyze why it’s happening and consequently improve your hiring procedures. You must be creative with your job description in order to tempt your prospective employees or renovate your onboarding procedure to make sure you offer a smooth transition.
- Candidate Experience
60 percent of the applicants confirm that a prompt response throughout the application process leaves a positive effect on their mind and more than 80 percent applicants admit that a single negative experience can influence them to change their decision even at the 11th hour. Thus, are you making sure to offer a positive candidate experience during your entire recruiting process? Make sure to engage each applicant and ensure that they stay informed regarding their application process as it enhances candidate satisfaction and refrains them from taking into consideration other opportunities.
- Hiring Diversity
Diversity recruiting metrics are important not just from a legal viewpoint. Equal opportunity regulations exclude bias in the recruiting process depending on race, religion, color, age, belief, caste, culture, gender, nationality, incapacity, sexual orientation or hereditary information. Along with that, hiring diverse employees has recognized advantages, from decreased turnover to improved creativity and productivity.
RecruitBPM offers you all-inclusive suite of recruiting reports that can be useful for you to remain on top of your recruiting metrics at each stage. Start with a free demo today and keep an eye on the performance indicators as you rehearse for future success by working towards constant development.