In the process of making your recruiting funnel, you’ll surface a dozen burning questions.
Which job posting sites are drawing their weight, and which drain funds and energy? Are you consuming too much time on phone screening, or too little? Are there any difficulties in frequently deterring quality candidates from taking your job offers?
Eventually, just how reliable is the recruiting process you’ve built?
Recruitment metrics give these answers. They flag difficulties at the first sign of trouble—whether it’s a bottleneck in the hiring method or a shortfall in applicants—and offer substantial opportunities to build a better, more robust recruiting process. We are sharing six primary metrics; every hiring team should follow, analyze, and develop to make a strong hiring funnel.
Why it is time to start tracking recruiting metrics
Recruiting metrics let everyone—recruiters, hiring managers, and executives—to exercise a step back from the day-to-day tasks of borrowing to get a summary of the effectiveness of their hiring method. They assure that each choice follows a broader organization goal, with every dollar of hiring spend turning into meaningful company growth.
The metrics that should be customarily met should achieve that goal in three ways, providing organizations with the understanding:
A common language: This parameters give clear, precise terminology, providing recruiters and executives to consider and take action on the strengths and weaknesses of their recruitment method.
Better candidate experiences: Several metrics make it simple to spot and remedy “outlier candidates”—applicants who are held in a particular stage of the hiring method or still expecting feedback.
Chances for constant improvement: The best metrics create opportunities to promote the hiring process, to source better-qualified candidates, and to develop more acceptance rates.
Six important recruitment metrics
- Sourcing Stats
Let’s begin with square one: Sourcing. Recruitment provides us a lot of choices when it comes to sourcing channels. Job boards, employee referrals, social media, you name it. Producing sourcing options is excellent of course, but measuring their effectiveness is great. Understanding which channel provides you the best candidates, who ideally set into actual hires additional down the line can be very valuable and cost-effective.
- Applicant Drop-Off Rates
How many of your candidates don’t make it to the end of the application method? And at what time do most of them drop off? Do most of them mainly drop off via mobile or especially desktop?
If you observe your application completion/drop off rates, it should serve you to answer these sorts of questions. The insights you obtain from the received data is useful when you begin optimizing your application methods.
An example, it turns out that of almost all the applicants who use mainly the mobile version of your website to fit for a job, only 10% thoroughly read the job description from top to bottom while on the desktop version this is almost 70%. In this case, you might consider writing your mobile job description.
Speaking of mobile, a well taken free careers page – and application method – indeed isn’t voluntary anymore:
> Over 90% of today’s job seekers handle their (smart)phones to job hunt.
> 45% of them does so on almost a daily basis and;
> 89% of them consider that mobile devices are a vital part of the job seeking process.
Smartphones are a preferred mode of engagement for most of the organizations, whether it is for entertainment, communication or indeed recruitment. So if you want to hold a chance trying to hire these tech-savvy digital natives, a visually oriented, mobile-enabled recruitment management software and the application process is your starting point.
Time to Hire
Time to Hire tells you how much time it needs to get a specific position filled. The period includes everything from the time it becomes clear that there is a demand for a new employee, till an employee is hired.
Time to hire also shows you how the performance of your recruitment process works. To optimize this method and be able to have succession planning, as companies should be aware of how long it needs to hire someone.
Quality of Hire (QoH)
Quality of Hire is also recognized as the Golden Metric. There are several reasons for this:
1) Quality of hire has a long-term influence on the business – the performance of your employees is immediately linked to the accomplishment of your organization as a whole.
2) QoH increases the overall quality of staff – quite literally it is about developing your workforce one new hire at a rate.
3) Eventually would increase retention rates – more high quality hires means greater retention rate which leads to smaller premature departures.
Cost per Hire
Did you know how many resources it takes for strong candidates to go through your hiring funnel? Think of advertising costs, total recruiter fees, LinkedIn and different social media accounts and job fairs for example.
The cost per hire recruitment metric shows the organization how much it costs them to hire new staff. This involves both individual hires as well as the overall total of new employees. Just like time to engage, the cost per hire metric mainly gives a complete insight into the (in) efficiency of your recruitment method.
Tip: Just like your sourcing stats, make sure the prices information together in one place, readily available for those involved. You may also want to have the sourcing (performance) information and costs per sourcing channel in the same overview, whatever works best for your company as long as you keep a record of the expenses per channel; recruiter fees, social media accounts, job fairs, and almost everything.
As it is mentioned before, recruiters and hiring managers only want to know one thing: i.e our recruitment method choosing the right person or not?
A very essential recruitment metric to look at for the answer to this question is your early turnover rate; the percentage of people that left the organization voluntarily within a year after they began.
A high early turnover tells you whether there is a mismatch between the candidates and your company’s culture or between the candidates and their (expectations of the) job.
Stop Guessing, Start Measuring
Of course, it is great that we can now use all kinds of 21st century HR Tech to the source, recruit and select candidates. But one of the most significant advantages of using that same HRMS software arguably is that we can trace and analyze performance. It uses the recruitment funnel into a big machine with lots of complicated knobs you could turn.