How data-driven are your recruitment practices?
If you don’t already track recruiting metrics and key performance indicators (KPIs), it’s an excellent time to start – especially as HR becomes more integrated with core business functions. Recruiting metrics offer the ability to assess your recruiting processes on an ongoing basis. With the right insights, you can pinpoint areas for improvement, iterate on what’s working well, and demonstrate how hiring contributes to your company’s bottom line.
Whether you’re a pro at measuring recruiting KPIs or need additional inspiration for leveraging recruitment analytics, tracking these 10 recruiting and HR data points will set you up for long-term success.
Time to fill reflects how long it takes to fill a position throughout the entire hiring process. Typically, time to hire is measured by calculating the number of days between the time you start advertising a job until a candidate accepts your offer.
Time to hire is similar to time to fill, but the clock starts ticking when your eventual hire enters your recruitment funnel, versus when you first post your job.
Both time to hire and time to fill vary depending on your industry and the type of role(s) you are advertising; however, keeping tabs on one or both of these metrics allows you to set benchmarks and determine ways to eliminate bottlenecks and hire faster.
The cost per hire is the sum of all internal and external recruiting costs required to fill a position, divided by the number of hires for that role. Recruiting costs may include fees for job postings, recruiting events, and even sign-on bonuses. Track your cost per hire to ensure you’re getting the best possible return on investment (ROI) for your recruitment expenses.
The quality of hire is a challenging KPI to calculate or quantify since it is subjective and specific to your business. However, you can take certain factors into account to set benchmarks, such as:
What proportion of job seekers who view your job posting (or click to view your job posting) end up submitting an application? A high view to apply rate signals that your job posting is compelling enough to convince a candidate to apply.
On the other hand, a low view to apply rate indicates that you’re either casting too wide of a net or something in your ad is deterring candidates from moving forward with their application, whether that’s a broken hyperlink or a low-ball salary.
Revenue per employee is somewhat associated with the quality per hire recruiting metric. Still, it offers a calculated value of employees to your business operations and puts a number on how much they contribute to your bottom line. Simply, revenue per employee is equal to the total revenue divided by the total number of employees.
Employee turnover is one of the most important recruitment analytics – determining how well you retain talent indicates how satisfied employees are with your organization and your employer brand.
Calculate your annual employee turnover in four steps:
Is your job ad reaching the right candidates and enticing them to apply? The number of applications you receive per job ad will give you a hint or two into your posting’s efficacy. Despite the need to track this number in your recruitment analytics, remember that focusing “quality over quantity” of applicants is also a good strategy for more efficient hiring.
Employee referrals are an employer-favorite way of filling open positions. As long as your existing employees are happy with your organization, they are invaluable in introducing you to talented candidates, such as former coworkers. The number of employee referrals you receive per job opening can indicate that you have a strong employer brand – and that your employees are satisfied in their work.
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Tracking candidates who accept your job offers versus those who bow out is a powerful recruitment KPI. If you have a low job acceptance rate, you might need to revisit the salary or benefits you’re offering and ensure they are competitive in your market.
There are numerous third-party review sites where former and current employees can share their honest feedback – good or bad – about their experience working with you. If your company has a profile on any of these sites, monitor for comments and “star” ratings – they will give you critical insights into where you may improve your workplace and hiring practices.
No matter which HR data points you choose to track, recruiting with iHire’s industry-specific, quality-over-quantity approach can help you hire faster and more efficiently. Learn more about iHire’s solutions.