Each month, we will tackle one of those burning questions that keeps you awake at night or causes heartburn during the day. Our team of experts will help you stay in the know. We'll cover topics like recruiting trends, legislation, workplace issues and more. You'll get information and answers that help you hire and retain top performers.
This month’s question is perfect for planning your recruiting strategy and analytics for 2024. What are the key metrics we should be tracking to assess the effectiveness of our recruiting efforts?
Tracking recruiting metrics is crucial for evaluating the success of your recruitment efforts. Here are some key metrics you should consider:
Time-to-Fill:
The time it takes to fill a job opening. It reflects your efficiency in the hiring process and can indicate how well your recruitment strategies are working.
Cost-per-Hire:
Total cost incurred in filling a position. It includes advertising, agency fees, recruiter salaries, etc. Calculating this helps in optimizing your recruitment budget.
Quality-of-Hire:
This metric assesses the performance and contribution of new hires. It can be measured by their productivity, retention rate, and overall fit within the organization.
Sourcing Channel Effectiveness:
Evaluate the performance of different recruitment sources like job boards, referrals, social media, etc. This helps in identifying the most productive channels for finding talent.
Offer Acceptance Rate:
The percentage of job offers accepted by candidates. A low acceptance rate might indicate issues with compensation, company culture, or recruitment process.
Candidate Experience/Satisfaction:
Measure the satisfaction of candidates with your hiring process. Positive experiences can attract more talent and improve employer branding. Gather feedback from applicants about their experience with your hiring process. This can highlight areas for improvement.
Retention Rate:
Track how long new hires stay with the company. A high turnover rate may suggest issues with the recruitment process or company culture.
Diversity Metrics:
Monitor diversity and inclusion in your hires. It helps in ensuring a varied and inclusive workforce.
Recruiter Activity Metrics:
Track activities of your recruiters, such as number of calls, interviews conducted, emails sent, etc. This helps in assessing individual performance and optimizing strategies.
These metrics alone give you great information. However, combining multiple metrics can offer deeper insights into your recruitment process. Here are some combinations that can provide a comprehensive view:
Time-to-Fill and Quality-of-Hire:
Analyzing how long it takes to fill a position against the performance of the hired candidate can indicate whether the length and speed of your hiring process compromises the quality of hires.
Cost-per-Hire and Quality-of-Hire:
Comparing the cost of hiring to the performance of new hires can reveal the effectiveness of your recruiting spend in acquiring top talent.
Sourcing Channel Effectiveness and Quality-of-Hire:
Assessing which sourcing channels yield the highest-quality hires can help in allocating resources to the most productive channels.
Candidate Experience and Offer Acceptance Rate:
Evaluating the experience of candidates who accepted offers versus those who declined can highlight aspects of your process that might affect acceptance rates.
Retention Rate and Diversity Metrics:
Analyzing the diversity of your workforce against retention rates can showcase the inclusivity and long-term success of diverse hires.
Recruiter Activity Metrics and Time-to-Fill:
Examining the correlation between recruiter activity levels and the time it takes to fill a position can identify the most effective strategies and efforts.
Applicant Satisfaction and Sourcing Channel Effectiveness:
Understanding which sourcing channels generate the most satisfied applicants can help optimize both candidate experience and recruitment outcomes.
When you combine these metrics, you create a more holistic view of your recruitment process. This helps identify correlations and insights to refine and enhance your strategies.