14 Most Important Metrics for Effective Recruiting
14 Most Important Metrics for Effective Recruiting
Recruiting metrics is an essential tool for hiring and other related processes. Recruiting metrics provides actionable statistical data that facilitates monitoring, hiring and assessment of recruits as well as the assessment of their performance in the company or institution. From the aforementioned facts, it becomes clear that Recruiting Metrics is an essential tool that heightens the efficiency with which top-tier workers are employed in a company.
The task of hiring prospective workers can be daunting especially when you want to ensure that you get the best hands. Thankfully, Recruiting Metrics facilitates the entire process and makes it a whole lot easier for recruiters, employers and other stakeholders to employ qualified and competent hands faster. Recruiting metrics are designed to ensure that your expectations from hiring a new hand is met and surpassed. While there are many Recruiting Metrics with different functionalities and applicability, here are 13 important metrics for effective recruiting:
- Time to fill: This metrics is very important and is an essential requirement for existing companies as it ensures the sustainability of a company’s operations. Time to fill metrics measures the time from when action is taken by a company to recruit a new worker and when a prospective candidate is eventually employed. This metrics is affected by the abundance or scarcity of prospective workers for the job. When there is an abundance of prospective workers seeking the job, it is expected that the time to fill metrics would be very short and vice versa. This metrics helps a company remain operational and helps avoid any hiccups that may be posed by not being able to find a new hand on time.
- Time to hire: While Time to fill measures the time from whence the company makes its move by publicizing that it needs new hands, Time to hire measures the time from which the company declares its intention to hire a particular prospective employee to the time when the individual consents to the company’s proposition of hire. This metric is usually representative of the recruiting agency’s competence.
- Source of hire: This metric is aimed at monitoring and identifying the source or sources that are responsible for enticing workers to an organization. The goal of this metric is to help you evaluate the competence of your various recruiting mediums. This metric is very crucial and its relevance ranks very high amongst rest of the metrics.
- First-year attrition: This metric is geared towards the retaining of workers and consequently hints at whether or not the hiring was beneficial or unproductive. If the hired hand abandons the company after one year of work then this is indicative of an unproductive hiring as it will create an unprofitable situation for the company. Usually, this situation could be caused by the incompatibility between the office and worker which prompts the company to relief the worker of duties or it could be caused by excessive pressure to meet up to company’s target which forces the worker to abandon the company.
- Quality of hire: Just as the title of his metric implies, the quality of hire is very relevant and hints at the performance level of a company and provides adequate insight into how well the hired hand is working and contributing to the company’s progress. This measurement often comes in the form of low or high performance rating and directly points to whether hiring a person was beneficial or a setback. This metric ratio often points to whether adjustments need to be made to the recruiting system, especially when the success ratio is low.
- Hiring Manager Satisfaction: the satisfaction of the hiring manager is imperative and directly linked with the quality of hire. When the quality of hire is great, there will always be a commensurate level of satisfaction from the hiring manager.
- Candidate job satisfaction: Often times, many recruiters make the mistake of promising certain benefits during an interview which is not at par with what is obtainable in actuality. When there is a minimal candidate job satisfaction, it is a pointer to the fact that there is a problem with how well the prospective worker’s outlooks were projected by the company. It comes highly recommended that you give a vivid description what benefits and reveal the entire package.
- Applicants per opening: Applicants per job opening is used to ascertain the extent to which a job opportunity is sought after by prospective workers. While the number of applicants is not suggestive of how many of the prospective workers are actually suitable for the job, it often allows for screening methods to be modified to acquire the most competent hands from the pool of applicants.
- Selection ratio: This metric provides data on the number of applicants that were chosen over the number that applied. Selection ratio also gives adequate insight into the applicants per opening. This metric and Applicants per opening are much intertwined.
- Cost per hire: Having cost per hire metric is very important as it gives adequate insight into the financial requirement for the total hiring of hands for a company. This metric has many relevancies and has a lot of variables that influences its measurement. Often polarized into outside and inside expenses, the cost of recruitment will range from advertising expenses, Agency fees, and so on for outside expenses and time spent by recruiter, time spent by manager, and so on for inside expenses.
- Offer acceptance rate: The offer acceptance rate offers details on the number of applicants that agree to take the proposal. When there is a minimal rate of offer acceptance you can be sure that the incentives and benefits in the proposal is very inadequate.
- Recruitment funnel effectiveness: This metrics is very important and remains a strong signal of how well the various stages of the recruitment process are working. While this is a very complicated measurement, various HR innovations have made it remarkably easy. With the help of software and other relevant inventions.
- Sourcing channel effectiveness: Sourcing channel effectiveness is aimed at measuring the number of hiring that each medium is able to generate independently. Google Analytics is very instrumental to determining the effectiveness of various channels. The most efficient approach to understanding the sourcing channel effectiveness is to have a defined target and then measure how well the channel produces hires.
- Sourcing channel cost: Expenses is an important issue in any undertaking and this is also the case when it comes to recruiting. The cost of your various sourcing channels is an important consideration that should not be trivialized for any reason. Sourcing channel cost metrics provides sufficient information on how. When you divide the expenses on each of the adverts by the number of people that became prospective applicants, you can immediately know how expensive the cost of each channel.
About the Author
Gursimran Kaur ( Co-founder & COO, ValeurHR )
Gursimran is an entrepreneur and started her career in 2004 and specialised in the field of Human Capital Management. Prior to her venturing into entrepreneurship, Gursimran has worked with Global companies like BBC (UK), Bharti Airtel, Quark, et al between working in various global locations including India & the UK.In 2006 Gursimran moved into Consulting, and founded ValeurHR, working with blue chip companies as well as strong focus on SMEs to build processes towards organisation productivity and driving metrics and people towards meeting business goals.In 2009 she worked on giving her consulting enterprise, ValeurHR, a formal shape. Gursimran has had a keen interest in organisation behaviour and the impact of all stakeholders to its output. She has a Masters from Warwick University, UK and further formal education in neuro linguist programming and also a member of the CIPD, UK.Gursimran can be reached at email@example.com
LinkedIn : https://www.linkedin.com/in/gursimran-sekhon-1bb5321/, ValeurHR, a formal shape.