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How do you know if your recruitment strategy is working? Ultimately you will look at the quality of your final hire but analysing your recruitment metrics can help you figure out what is working and what you need to improve. In this article we look at everything you need to know about recruitment metrics to help you make changes that will improve your recruitment performance.
Key Takeaways
- Recruitment metrics are important to help you analyse your performance
- Key metrics include looking at your time-to-hire and the cost-per-hire
- There are steps you can take to improve these metrics that will deliver benefits for your organisation
Recruitment metrics can be measured throughout the recruitment process to help you analyse its effectiveness. Looking at these metrics and making improvements can help you be more efficient which can save you money and reduce stress. Improving your metrics can also help you hire the right candidates, so what are the key metrics you should be looking at?
Important Recruitment Metrics
There are a number of metrics that you could look at but below are the three main areas that we recommend which can have the biggest impact on your performance.
Time-to-offer
This measures the time between an initial application through to the job offer. An alternative option here is to look at the time-to-hire but there are aspects out of your control, such as notice periods, that can skew the data here.
Time-to-offer gives you a good indication of how efficient your recruitment process is. Ideally you want to aim for an average of 30 days as taking much longer than this might imply you have issues with your process. Targeting a time-to-offer of around 14 days can be achievable if it is not a niche role or if there is an urgency for the position.
To help reduce your time to hire you could look at using an application tracking system (ATS) to help automate some of the process and you should aim to post your jobs to a wide network of channels.
Quality-of-hire
When looking at your quality-of-hire you are essentially looking at the value that a new employee can add to your business. This can help you identify where there might be any issues with the type of candidates you are hiring. If you are hiring poor quality candidates, this could have a significant impact on your companies’ performances and finances.
To help calculate this metric you could look at carrying our performance reviews with your employees on a regular basis looking at areas such as cultural fit, skills and experience and their behavioural alignment, with all reviews calculated using the same scale scoring system. You can then divide the combined 3 scores by 3 to get an individual quality-of-hire score and look at the overall average to see how each individual employee is performing.
If you identify an issue with your quality of hire then you could look at where you are advertising, the quality of your job description and your recruitment process to help you better analyse candidates across the three categories.
Cost-per-hire
Recruitment comes with costs, and it is essential that you track how much you are spending on your recruitment campaigns. Looking at your costs can help pinpoint where you might be able to make savings. To calculate your cost-per-hire you should look at your total up front costs (any media or agency spend) and any onboarding and training costs plus any additional spend associated with recruitment.
To help reduce your cost per hire you should see where the largest part of your costs is coming from. This can often be paying a high commission cost to a recruitment agency so you could consider either taking your recruitment in house or using a fixed price service such as ecruit to help you save you a significant amount.
Summary
Tracking your recruitment metrics is a great way to identify any issues and help improve your performance. At ecruit, we can help you improve these metrics by saving you time and money, reducing your time to hire through our ATS and improving the quality of your candidates.
Book a 5 minute demo with our team to find out more.
