What metrics should matter most to a Talent Acquisition team?
If you don’t measure what you do, how do you know if it’s working ?
The maxim above is a simple one, but it speaks to a critical flaw across the recruitment industry. Without analytics, organizations make decisions in a vacuum. However, with the advent of the digital age, all companies have data at their fingertips—‘going with your gut’ should never be the only viable option—or, at least, it doesn’t have to be anymore.
If you want to find data-driven ways to optimise your hiring processes, you need to start by measuring the right recruiting metrics. This will give you the insights you need to evaluate the effectiveness of your entire process.
With goals of seeking greater recruiter efficiency, effectiveness and business alignment, metrics provide the scorecard that measures success.
What are recruiting KPI's?
Recruiting KPIs (or Metrics) measure how effective and efficient your recruitment process is. Some metrics are expressed as percentages or ratios while others are absolute values that you can compare to industry or company standards. By providing information on which functions are working well and which functions are underperforming, recruiting metrics are crucial for understanding where process improvements are needed and justifying investments into specific recruiting functions.
What can you learn from #Recruitmentmetrics?
At a high level, you probably want to know the quality, cost and productivity of you hiring process. More specifically, you could ask the following questions:
How good are we at spotting the right candidate and how long does it take us to hire them?
How many qualified candidates do we need to make a hire and how quickly do we have them from one stage to the other?
Do we effectively engage the best candidates and getting them to accept our job offers?
How much money do we spend per hire and how does our spending change depending on the role we're hiring for?
How efficient is our hiring process and which steps or stages are most productive?
Top 4 Talent Metrics to Measure & Track:
Time to fill & Time to Hire Metrics
Definition - Your time to fill metric simply adds up the total number of days an open job goes unfilled, and your average time to fill looks at all unfilled positions over a set time period. Time to fill is influenced by supply and demand ratios for specific jobs.
Why is it important - It’s a great metric for business planning and offers a realistic view for the manager to assess the time it will take to attract a replacement for a departed employee. In addition, a short time to fill a position usually has a positive effect on the rest of the team as it means less overtime and instability. Tracking time to fill is a great way to get a holistic view of how efficient your recruitment strategy is
Tracking the right recruiting metrics is no longer an option if you’re a Talent leader striving to build out the best team. It allows you to identify key areas of improvement and make smart changes that will make your organization a top contender for stellar candidates.
Candidate Experience Metrics
Definition - Candidate experience is the way that job seekers perceive an employer’s recruitment and onboarding process, and is often measured using a candidate experience survey
Why is it important - You want to know what candidates think of your hiring process because you’re always working to provide the best experience possible.
You can easily track your Net Promoter Score to measure candidate experience by sending out post-interview surveys.
Job Offer Acceptance Metrics
Definition - The offer acceptance rate is the percentage of extended offers that are accepted.
Why is it important - This allows you to see how successful your team is at bringing a candidate on board. As much as you’d love to think that all candidates would jump at an offer after going through your entire hiring process, that’s not reality. A low acceptance rate may be attributed to compensation issues or slow offer times.
Application completion rate
Definition - This is the percentage of applicants who start, complete and submit an application for an open role.
Why is it important - Improving this metric can help give you access to the best talent. Top candidates know they have options and they won’t deal with your unintuitive application page or an unnecessarily lengthy format. Thankfully, this is one of the easiest metrics to improve. Find what’s turning people off about your user experience and fix it. Or better yet, invest in digital tools to improve this metric.
Nowadays you need a proactive talent strategy and your whole team executing on it to get the best talent out there. The reality of today’s talent acquisition environment is there is a major opportunity to build a competitive advantage with the use of data. Talent acquisition by nature creates an enormous amount of data, and that data has to be looked at as an asset vital to your organization’s long-term success.
The question is, are you getting the most out of that asset? If the answer is no, then it’s time to start inspecting next-generation tools that can pick up where the human elements of recruiting fall short.