A pivotal part of any successful project depends upon its fair evaluation. There are different checks and balances pertaining to pretty much everything we do. Likewise, there are certain recruiting indicators that exist in order that recruiters can regularly evaluate their recruiting practices. These indicators not only help recruiters analyze their ways but also to rectify their shortcomings. Ultimately, it enables them to optimize their overall recruiting strategy.
On the contrary, the absence of these recruiting indicators potentially leaves recruiters nowhere but in the dark. If they are not able to estimate their recruiting effectiveness, any effort by the recruiters holds no meaning. With the continuous advancement of technology, the recruiting landscape is transforming significantly and so do the recruiting indicators. Thus, inclusion of such recruiting indicators is contingent to consolidating any successful recruiting plan.
Before we get into the details of most relevant recruiting indicators, I want to add a word of advice here. The choice of performance indicators is a function of your overall recruiting strategy. Thus, one criteria that works for one party may not necessarily hold equivalent meaning for another. So, be very careful before you decide on the following recruiting indicators.
Top Recruiting Indicators
Recruiting indicators are such calculated measures that assist recruiters in strategizing their hiring model to elevate its functional performance. These indicators pertain to both short and longer term expected business outcomes. Moreover, these parameters also provide insights regarding the possible convergence or divergence of goals owing to certain policies in place.
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Quantize Potential Applicants
The potential applicants are those candidates who successfully make it through the initial screening process of hiring.
Although, it sounds winning to witness a large number of candidates applying to your open positions. However, it’s going to do you no good if most of such profiles can’t suffice your needs. Thus, recruiters should rather direct their efforts to those potential profiles that meet most of their needs. These are the candidates who not only pass the initial screening process but also possess greater conversion chances. Consequently, these potential candidates in turn benefit the recruiters in terms of offering a good hire to the clients.
Read also: 5 Strategic Practices to Maximize the Quality of Hire -
Time to Hire
Time to hire is another important parameter among the list of recruiting indicators. The time to hire basically equates to the difference of two timestamps- the date an offer is presented to the candidate and when the offer is accepted by that particular candidate.
This parameter indicates to the recruiters of all those congestion points that are curbing their recruitment proficiency. Indeed, if the hiring of any candidate takes less time, there is going to be less cost pertaining to its application processing.
Time to hire holds more meaning than simply reducing the hiring time of any candidate. The current job landscape tells us enough that the top talent never falls short of good efforts. Therefore, recruiters must keep their eyes wide open in order they don’t miss out on any prospective candidate.
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Cost of Hire
Cost of Hire is simply the ratio of two entities; the summation of recruiting budget and the summation of candidates hired.
There are certain fixed and dynamic costs associated with the hiring of any candidate. These costs include but are not limited to advertisement, job boards, screening processes etc.
Where other recruiting indicators gauge performance, cost per hire enables recruiters to cut down the costs pertaining to redundant processes. Suppose a case where recruiters attract most of the candidates via email marketing but are paying huge costs to multiple online channels like Indeed and Glassdoor. In such a case, calculating cost per hire can prompt the recruiters to cut down substantial monetary drain of the company
It indexes and records data of the economic value of any prospective employee. Moreover, this data also helps recruiters to draw data driven decision making for future hiring.
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Acceptance Index
As the name suggests, the offer acceptance index is simply the indicator of total accepted-jobs by the candidates. It is calculated by dividing the number of successful offers with the sum of all offered jobs.
In the process flow, the stage that comes next to the narrowing down of candidates is offering the job. After all, the objective of the entire process is to successfully land a suitable candidate for an open position. However if you happen to experience time lags, you might need to revise your recruitment strategies. There might be certain strategies you should quit to gain better results.
In effect, the acceptance index provides useful insights to analyze the effectiveness of the client’s financial policies of any firm.
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Hiring-Medium Efficiency
The efficiency of hiring medium is the difference of number of potential candidates from a particular medium to the average number of candidates from all other sources.
The hiring-medium efficiency indicates the recruiters about where their best candidates are coming from. Likewise, they are also better able to analyze the respective ROI. By doing so, you can develop better social strategies and improve the recruiting process in general.
The hiring-medium efficiency can be calculated using several tracking tools for instance Google Analytics.
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Retention Rates
Among other recruiting indicators, retention rate holds great importance. As the name suggests, retention rate is basically the measure of the number of employees still working with the firm at the end of any quarter relative to the number of employees at the beginning of the same quarter.
Retention rate belongs to the list of most significant recruiting indicators since it highlights the functional analysis of employees’ experience. In turn it also helps in identifying the turnover rate.
The above list of recruiting indicators is just the tip of the recruitment gauging metrics. Subscribe to our newsletter to keep yourself updated.
RecruitBPM is an all inclusive solution for all your hiring needs. Furthermore, if you need to know more about how our applicant tracking system works, you can always request a free live demo with RecruitBPM.
