The Recruiting Metric To Consider
In an age of fast data-driven business, the recruiting departments need to pick up the game and make the necessary changes to keep up with all the other departments. Nearly 70% of the hiring managers today have stated this point as well, adding “the need for an accurate and up-to-date recruiting metric has never been so tangible.”
A vast portion of the company’s finances goes to HR, almost a third, and not having an unobstructed view on how to spend that money can prove catastrophic for both the company and the hiring team.
Below, we will mark out the key points in an efficient recruiting metrics and go into details on those where you need to focus more.
- Source of Hire
- Time to Hire
- Applicants per Hire
- Cost per Hire
- Candidate Experience
- Offer Acceptance per Hire
- Quality of Hire
- Vacancies vs. Positions Filled
Source of Hire
Source of hire is a recruiting metric that pictures, where the new employee and best talents come, should be chosen from.
Silkroad’s survey let us know the most common sources of hire:
- %31 – Job board and aggregator
- %22 – Employee referral
- %11 – Internal hire
- %11 – Company career site
- %10 – Agencies
Time to Hire
The number two of recruiting metrics go to the time to hire, which translates into the number of days from the approval of a job requisition to the day a suitable candidate get recruited.
The nine tips to reducing the time of hire are as follows:
- Automate job posting and social media promotion
- Automate resume screening through AI
- Rediscover previous candidates
- Automate the initial talent outreach
- Provide more information for hiring managers
- Automate interview scheduling
- Conduct online interviews
- Revolutionize reference checking
- Utilize e-signatures for contracts
Cost per Hire
Cost per hire, as an essential recruiting metric, tallies the recruitment process for effectiveness and efficiency. Adopt the following practices to learn how to reduce cost per hire.
- On a fixed basic examination cost per hire
- Analyze cost by department and position
- Calculate the total cost
- Assess the cost
- Use the collected data for strategic planning
Quality of Hire
In order to select the best people for the job, recruitment teams have to pay more attention to the quality of hire.
Based on studies, numerous companies will vanquish in the next ten years. So, they need to hire the most suitable candidates, as part of adapting to the modern recruiting metric tactic, to avoid catching such a devastating fact.
To set the company on the right course, here are five measures to evaluate the candidates unbiasedly:
Step 1: Collecting quality of hire metrics
Step 2: Measuring the quality of hire for each employee
Step 3: Measuring the average quality of hire of new employees
Step 4: Measuring the quality of hire of a particular recruiting method
Step 5: Measuring the overall quality of hire
Establishing a bridge between the recruiting metrics and business outcomes
In many ways, putting the new recruiting metric system can be beneficial. It’s also absolutely vital for the recruiting department since it enables them to demonstrate their strategic and financial value.
Let’s take a look at these business outcomes.
The term “reduced costs” sits well with any company and managers, and every new method and way of thinking can help them lower their final numbers and pick their interests.
In the case of the new recruiting metric system, an upward steep in retention easily and impressively reduces the cost of business outcomes.
To accomplish this, hiring managers should take advantage of the cost per hire and the retention rate methods to estimate how much they’ve reduced the turnover costs.
The most qualified and specialized workers contribute enormously to the company’s productivity and raising its brand name. As research show vividly, top performers in a company can up to 4 times increase the output of it compared to the average employee.
If a hiring manager is to figure out just about how much revenue an average employee generates for the company, they can easily calculate the monetary value of a high-quality worker by multiplying the digit by 4.
This number shows how much an efficient recruiting metric system is required. Furthermore, it shows the value of recruiting the best employee.