With more HR departments becoming data-driven, recruiting businesses are increasingly looking for the most cost-efficient ways to improve long-term impact. One of the best ways to achieve this goal is to track recruiting metrics to ensure each new candidate receives the best recruiting experience.
Naturally, that increased the need for the most accurate recruiting metrics. Since HR makes up for a good part of a company’s operating expenses, it’s safe to say that your business could be at stake if you fail to show the real business value to every candidate you recruit.
That’s why so many businesses are increasingly investing in tracking recruiting metrics. However, blindly tracking any recruiting metrics won’t be enough to show the actual value of your recruiting process.
Your HR department needs to know which recruiting metrics to calculate, measure, and optimize to ensure the best talent acquisition. This short guide will inform you of some of the essential recruiter performance metrics you should track to assess the effectiveness of your recruiting process.
Source of hire
This recruiting metric tell your HR department where your candidates are coming from. Some of the most common sources of hire include:
- Recruiting agencies (10%);
- Company career websites (11%);
- Internal hire (11%);
- Employee referral (22%)
- Job aggregator or board (31%).
Tracking these metrics can provide valuable information on a range of useful things, such as which tools to use to improve your recruiting program, how to better use your advertising and marketing budget, and how to reduce costs.
Time to fill
Time to fill refers to the number of days between when permission to start the recruiting process is approved, and the day the candidate accepts the request to fill a job. It’s a recruiting metric that measures the efficiency of your recruiting process.
According to a survey, the average time to fill is 41 days. However, the hiring volume is slowly increasing, tightening the talent market and exposing HR departments to increased pressure to make their time fill as efficiently as possible.
Thankfully, businesses can automate and streamline up to 63% of the recruiting cycle by using recruiting software tools to make the recruiting workflow as effective as possible. In addition, the more you reduce your time to fill, the more you gain a competitive advantage over your respective competitors.
Reducing time to fill allows businesses to reach and acquire talent faster than their competitors. Here are a few quick tips to reduce your time to fill:
- Automate social media promotion and job postings;
- Use AI to automate resume screening;
- Retarget previous candidates;
- Automate your SMS and email talent outreach;
- Keep your HR department and hiring managers up-to-date with candidate insights; ● Automate interview scheduling;
- Conduct online interviews.
Cost per hire
This recruiting metric helps you track your recruiting program’s cost efficiency and effectiveness. Cost per hire provides data that helps your HR department identify the best practices for spending your recruiting budget. It also helps identify weaknesses in the process and the best ways to remove them.
Cost per hire is the term that refers to the total recruiting costs that include:
- Internal recruiting costs – fixed costs such as office rent, interview costs, employee referral bonuses, recruiter salaries;
- External recruiting costs – agency fees, advertising costs, technology costs, recruiting event costs, career fair;
- Candidate-related costs – signing bonuses, relocation costs, travel costs.
Since this metric can help to optimize your recruiting process, you can reduce your cost of hire by regularly checking your hiring costs, analyzing expenses by job position and department, and assessing the most cost-effective sources of hire.
Quality of hire
Quality of hire is another essential recruiting metric that tells a business all about the quality of the acquired talent. In other words, it informs a company of how effective its recruiting process is when it comes to finding and acquiring the right candidates.
Choosing the right people for the job is crucial to keeping your business relevant and competitive. That’s why many hiring managers consider the quality of hire as one of the most important recruiting metrics.
With the advent of real-time performance and employee engagement surveys, as well as feedback, it’s much easier to collect the data for tracking the quality of fire than before.
Tracking quality of hire requires completing a few steps, such as:
- Gathering metrics such as retention, time to fill, employee productivity and engagement, job performance, cultural fit, and hiring satisfaction;
- Assessing the performance of an individual candidate;
- Assessing the quality of specific recruiting practices;
- Calculating the overall recruiting quality by tracking retention and quality of new hires.
If your recruiting process is as effective as it should be, you should reap some benefits, such as increased revenues, reduced costs, and business growth.
The best way to assess the effectiveness and value of your hiring process is to keep tracking recruiting metrics.
These measurements can help identify any weakness in your recruitment and discover the areas for improvement, as well as how to save time, effort, and resources on acquiring top talent.
If your recruiting process reflects real brand value, you’ll be able to improve your conversion and retention rates.