We all are familiar with the term Data Driven Hiring Process.
But, do you know how you can make the best out of it by applying recruiting analytics?
There are few recruitment metrics which help you to understand whether you are recruiting right people for your company and creating an enormous return on investment (ROI).
Now, what do you understand when we are saying Recruitment Metrics?
Recruitment metrics are measurements which are used to track hiring success and optimize the process of hiring candidates for an organization.
If you use them correctly, these metrics help you to evaluate the recruiting process.
So now that you know what recruitment metrics are, you need to know about recruitment metrics your company needs to concentrate on.
It’s important for your talent acquisition leaders to be well versed in some of the most common recruitment performance indicators. So we’ve gathered six of the best recruitment metrics, including how to calculate them:
1. Qualified Candidates
This recruitment metric is a strong indicator for you to understand how close your team is to achieve their hiring goal for a given period.
As we all know, recruitment process can be easily compared with sales process.
Hence, think of qualified candidates like the top quality leads your sales team pursues. A candidate who is determined to be a good fit for a job after a phone interview can be labeled a qualified candidate.
Once you make offer to these applicants, you can compare the number of qualified candidates to offer acceptance rates over time.
Measuring qualified candidates can help you to predict your ability to achieve hiring goals down the road–something your company’s senior leaders will be eager to see.
Calculating Qualified Candidates:
Qualified Candidates = Total Candidates Per Opening Who Move Past the Phone Screen Stage
2. Time To Fill:
The Time To Fill Metric simply adds up the total number of days till an open job position remains unfilled. Average Time To Fill looks at all unfilled positions over a set of the
To make this recruitment metric more robust you can single out the days to close and count just the days from your first contact with the candidate until they sign the offer.
Though it offers a clear picture of the efficiency of your talent acquisition strategies, there are so many components which can worsen this metrics very easily. That includes you’re the time your recruiter is taking to reach out candidates, total time taken for scheduling the interviews and many more.
Breaking down your total time to fill in different sectors can help you to understand the areas of improvement.
But as we know, when there is a problem, there is always a solution.
Time to fill = Total number of days job is available and unfilled
Average time to fill= Total number of days of open jobs/Total number of jobs open
3. Offer Acceptance rate:
This recruitment metric tracks the number of offers that you have extended to candidates are accepted.
It is applicable usually after the application and interview processes are finished. Offer acceptance rates rarely hit 100% but by tracking them over time you can find out the effectiveness of your recruitment strategies.
If your offer acceptance rate is low or trending down, this provides a good excuse to review the incentives you offer candidates.
Additional metrics which are responsible for candidate satisfaction, can help explain the underlying trends in your offer acceptance rate.
Offer Acceptance Rate= Number of Acceptances/Number of Offers X 100
Offer to Acceptance Ratio= Number of Offers/Number of Acceptances
4. Quality of Hire:
Quality of hire has a long term impact on your business. It tells you the value that the newly hired candidates bring to your firm. From productive fit to cultural fit, it takes everything in an
More quality of hire means more better fits that leads to less premature departures.
The average quality of hire combined with factors like your turnover rate, will highlight how well your team sources quality candidates.
Quality of hire (%) = (Job Performance + Ramp-up time + Engagement + Cultural Fit)/N
(All scored out of 100, N= Number of indicators
Overall Quality of Hire=[Avg. quality of hire score + (100-Turnover Rate)]/2
Overall Quality of Hire(%)= (PR+HP+HR)/N
[PR= Average job performance rating of all new hires
HP= % of new hires with acceptable ramp-up-time within acceptable time frame
HR= % of new hires retained after one year
5. Cost per hire:
Do you know how many resources it takes for successful candidates to go through your recruitment funnel?
It includes all of your your job advertisement, job fairs, recruiters, job portals and Linkedin.
Cost per hire is the best way to measure the value of your recruitment resources.
Breaking down cost per hire will help you find and eliminate unnecessary costs, or reallocate resources in more efficient ways.
Cost per hire= (Total External Cost + Total Internal Cost)/ Total Number Of Hires
6. Retention Rates:
Your retention rate tracks the total employees who stay with your firm over a given time frame, out of the total number of employees you had when that period began.
Candidates who leave in their first year of work fail to become fully productive and usually cost a lot of money.
While your retention rate tells you how many employees remained, you can also track turnover rates, to measure how many leave voluntarily in the same period. As your retention rate goes up, your turnover rate will go down. Low retention rates may be discouraging, but they also present an opportunity to review your hiring techniques, and can lead to alternative sources of candidates who are more likely to stay.
It is a key recruiting metric which also indicates hiring success.
Retention Rate (%)= (Total employees still employed at end of period/ Total employees at start of period) X 100
With the help of these 6 metrics, we believe data driven hiring process will turn out to be simpler for you!
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