Summary: Analyzing the recruitment metrics is essential to find the necessary improvements to improve recruitment strategy and hire the top talent. What are the most important recruitment metrics you can consider for optimizing the recruitment strategy? Find the article below!
Recruitment metrics help in properly evaluating the entire hiring process and finding necessary ways to constantly improve the outcome.
Analyzing these metrics would help businesses create and implement data-driven talent acquisition and retention strategies. Let’s learn about different recruitment metrics and how you can leverage them to strengthen the workforce.
What are Recruiting Metrics?
Recruitment metrics can be defined as the parameters used to track, analyze, and improve hiring procedures. When evaluating the processes against these parameters properly, an organization can learn whether they are hiring the right personnel. Properly understanding and analyzing these metrics would help in constantly optimizing the recruitment process.
Why Do You Need to Track Recruiting Metrics?
Measuring and analyzing recruitment metrics is important because it can help in finding out:
- The right time to fill in the job positions.
- Which sourcing channel brings the most talented candidates.
- How much money does an organization spend per hire.
- Which stages of the recruitment process are productive, and which are not.
- The number of candidates you need to interview for the open job position.
- To analyze your return on investment on the new hires
15 Important Recruiting Metrics to Track
There are multiple types of recruiting metrics that help you evaluate and optimize your recruitment procedures. Some of the most common metrics include application completion rate, sourcing channels efficiency, interview to hire ratio. Some other most common recruiting metrics you can consider for improving your recruitment procedures are:
- Time to Fill
Formula to Calculate Time to Fill: Date of offer acceptance / Date the job position was advertised
It is the time to source and hire candidates. It is measured by the number of days between the job opening till the time the candidate is hired. This time is affected by the ratio of demand and supply of job openings, the speed of recruitment processes, etc. This metric would help them to understand the time taken to fill a position and find ways to reduce this time.
- Time to Hire
Time to hire is the time frame starting from the moment when a candidate applies for the job till the time he/she is hired. The time to hire depends on the specific job profile and the number of steps included in the interview procedure. Fewer interview steps might reduce the hiring time and increase the chances of getting the right candidate quickly.
- Source of Hire
This recruitment metric includes all the channels an organization uses for the recruitment purposes including job portals, employees’ referrals, agencies, etc. By analyzing different sources, an organization can find out which channels are referring to qualified candidates, and which are not.
- Quality of Hire
Formula to Calculate Quality of Hire: Factor1+ Factor2+Factor3/Number of Factors
The Quality of Hire recruitment metric analyzes the performance of a candidate in terms of work. This is based on multiple quantitative factors such as the number of sales completed, tickets resolved, or the tasks completed on time, etc. By analyzing this metric, the organization can find which employees would be beneficial in the long run.
- Candidate’s Job Satisfaction
This metric helps organizations gauge the hired candidate’s satisfaction in terms of his/her job profile and the company. By analyzing this metric, the organization will find whether the candidate’s expectations have been met or not. To improve the candidate’s job satisfaction, the company should provide a preview of the roles and responsibilities that comes with position.
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- Applicants Per Opening
It is defined as the number of people applying for a particular job opening. The number of applicants available for a job helps us understand the demand for specific job roles in the market. By adding relevant criteria for any job opening, an organization can get the most qualified candidates.
- Interview to Hire Ratio
Formula to Calculate Interview to Hire Ratio: Number of Interviews Taken / Number of Offer Letters Extended
An interview to hire ratio defines the number of candidates a hiring manager will have to evaluate before making the selection. It measures the number of interviews taken till the final candidate is selected and closed with the offer letter. By analyzing this metric, an organization can find out how much time is spent on interviewing candidates to fill in a position and find ways to reduce the interviewing time.
- Cost Per Hire
Formula to Calculate Cost Per Hire: Total Recurring Cost/ Number of hires
Cost per hire includes the annual cost spent on the hiring procedure divided by the total number of candidates hired. The cost can be internal and external including advertising, training, time spent on hiring, cost including in onboarding the candidate, etc. By analyzing the cost, an organization can find out the amount it spends to hire a candidate.
- First Year Attrition
First year attrition rate is one of the most important recruiting metrics that also helps to measure hiring success. There are two types of attrition; the first is managed attrition when employee leaves as told by the company. Second is unmanaged attrition when an employee leaves because of his own will. If the employee leaves in the first year itself, it is considered a failed recruitment. However, if the employee stays for more than one year then the recruitment is considered a successful one.
- Offer Acceptance Rate
Formula to Calculate Offer Acceptance Rate: Nos. Of offers accepted / Nos. Of offers X 100
This acceptance rate is defined as the number of candidates getting the offer letter against the number of candidates who accepted it. The lower acceptance rate might highlight the issues in the recruitment process. There might be issues related to salary, work time flexibility, and employee benefits. However, working on these issues might help in improving the offer acceptance rate.
- Application Completion Rate
Formula to Calculate Application Completion Rate: No. of applicants completed the application / No. of applicants started filling the application
This recruitment metric measures the number of applicants that have completed the application as compared to users who did not. Lower application rate might be indicative of issues candidates might have faced while applying for the role like the higher application loading time, device incompatibility, etc. By analyzing these issues, an organization can find out how to streamline the application completion procedure for candidates.
- Number of Open Positions
It is the percentage of open positions in your department compared to other open positions in your organization. If the percentage is high, it means that the demand for a specific job role is high in the market or the supply of workers with the required skills is low. Accordingly, you can mold your recruitment strategy to fill positions faster.
- Candidate Calls Back Rate
Candidates call back rate is the number of callbacks an organization gets from the interviewed candidates or leads. If you have a lower candidate callback rate, it implies that your recruitment pitch has not been compelling enough to grab the attention of potential candidates.
- Sourcing Channel Cost
Formula to Calculate Sourcing Channel Cost: Money spent on the source channel / No. of candidates hired from that channel
The sourcing channel cost is the amount an organization spends on a recruitment channel to hire the right candidates. This cost can be derived by measuring the amount spent on a recruitment channel compared to the number of candidates hired through the channel. Analyzing the source channels’ cost would help in finding which channels are providing profitable candidates for your organization.
- Candidate Diversity
This recruitment metric is important to ensure that the most talented candidates are hired irrespective of their background. Evaluating this metric would ensure that candidates from all backgrounds are interviewed and there has been no discrimination whatsoever based on color, religion, creed, etc. This would make it clear that the recruitment procedure has been unbiased for each candidate.
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Analyzing the recruitment metrics is indispensable for any organization to optimize their recruitment procedures and hire talented candidates. In depth analysis of these metrics can help hiring managers appropriately allocate their resources and find which hiring strategy is working and which is not.
Related Categories: Recruitment Management Software | Payroll Management Software | Workforce Management Software | Applicant Tracking System | Attendance Management Software