Success of a business requires constant measurement of efforts and analysis of strategies. When assessing the success of recruitment process, there are multiple metrics to be measured. Some metrics describe the efficiency and speed of the hiring process while others are focused on quality. But which metrics you should measure to what effect depends on your organization and objective. In 2019, when every step of the recruitment process has evolved with the help of latest technology, measuring recruitment efficiency is a lot easier and important.
- What is Recruitment KPI?
- Measuring Recruiting Success
- How to Measure Recruitment Effectiveness?
- Key Metrics to Measure Recruitment Success
What is Recruitment KPI?
KPI or Key Performance Indicators are essential to measure the success of a process. It’s a numerical value that can be measured to understand how efficient the process is in meeting its objective. So Recruitment KPIs also interchangeably referred to as recruitment metrics are the measurements performed to track and evaluate the effectiveness of the recruitment process so that gaps can be identified and improvements can be made.
Measuring Recruiting Success
In order to measure recruiting success one must know the KPIs that matter the most. This can be a challenging process for talent acquisition professionals. The first challenge is to understand the best way to recruit as per the context. For instance, hiring process for a top level executive is different from that of an entry level individual. Also, hiring for a tech company differs from hiring for a real estate company. These differences are as per the industry and roles that one is hiring for. The number of applications received, the time taken to hire, and other metrics will also accordingly differ.
Therefore, there is no one-size-fits-all approach to measuring recruiting success. The KPIs that matter to you most today may be very different from the business you will join in your next hiring role. That’s why it’s essential to understand the context in terms of the key goals around recruitment and design the KPIs accordingly.
How to measure recruitment effectiveness?
If you want to measure the recruitment efficiency in your organization there are some key metrics that you must not miss out. The choice to measure a particular recruitment metric should always be connected to your recruitment goals. Therefore, instead of measuring everything, you should focus on few critical areas and measure those KPIs which are relevant to your recruitment process and goals.
Key Metrics To Measure Recruitment Success
Here are some top metrics that will help you measure the recruitment success or efficiency in 2019:
- Find the Best Source of Hire to Measure Recruitment Efficiency
- Find the Time to Fill to Measure Recruitment Efficiency
- Know the Offer Acceptance Ratio for measuring effectiveness of recruitment process
- Find the Cost per Hire to Measure Recruitment Efficiency
- Know Retention Rate to Measure Recruitment Efficiency
Find the best source of hire to measure recruitment efficiency
It is helpful to find which recruitment sources are delivering the best candidates so that you can accordingly allocate the resources. The source of hire metric will throw light on the data related to the percentage of hires coming from each channel. The different channels or source of hires are job boards, career site, social media channels, referrals etc.
Find the Time to Fill to Measure Recruitment Efficiency
As the name suggests, the Time to fill metric measures the total no. of days taken to fill a particular role. Time to fill varies from role to role but an average can be taken to get an idea of the key benchmark for different levels. Measuring time to fill is essential as it provides the clear picture of the efficiency of the talent acquisition team and strategy. If you find the numbers not to the optimum level, it may be a sign that something is not working as well and needs attention.
Know the Offer Acceptance Ratio for measuring effectiveness of recruitment process
Offer Acceptance rate measures the number of offers that were accepted out of the total number of offers extended to candidates. If it takes 20 offers to finally get a candidate for a role, then it simply means that the recruiting process is not satisfying the candidates. There can be gaps on multiple front, may be a poor candidate experience, a slacking interview process, or unmatched expectations.
Find the Cost per Hire to Measure Recruitment Efficiency
If you think spending more money is the only way of getting the best talent then you couldn’t be more wrong. That is why we have to measure the cost per hire to optimize the recruitment budget and find the minimum amount of money to attract talent. Although there is a lot that can be covered under recruiting costs and cost per hire, but obsessing over this metric is not the right way to attract best candidates.
Know Retention Rate to Measure recruitment Efficiency
Finally, you need to make sure the hired candidates are staying in the company because the cost of replacing an employee is always greater than their existing salary. Retention rate is one of the most important metrics as it’s the easiest way to judge the fit between the employee and the employer. A high retention rate indicates employee’s expectations are matched and they will have good things to say about the organization, improving its employer brand. It also means, as a recruiter you have been successful in sharing your company’s story in a compelling way.