Talent acquisition metrics, analytics and reporting are all crucial to successful recruiting. But for many busy HR professionals, understanding, analyzing and using recruitment metrics to improve their businesses can be overwhelming and more than a little confusing. As a result, many organizations collect and report metrics because they know they should, but they stop short of extracting insights that can improve hiring.
While scores of valuable recruiting metrics exist for specific industries, for C-suite hiring, or for large-scale talent acquisition, there are a few core metrics that benefit all companies. Read on to learn the best practices for these key recruiting metrics:
Time to Hire and Time to Fill — These two important metrics are similar, but not synonymous. Time to fill measures the amount of time between when a position opens and when someone is hired and accepts the role. It is a broader metric that sheds light on how well your overall recruiting operation functions, from job listings to employer brand to the application process. It can also indicate your organization needs to improve its talent pool so you have strong candidates to turn to the moment a job opens.
Time to hire measures the time between when a promising candidate is identified and enters the hiring funnel, and when they accept an offer. Separating out this time period can draw attention to important candidate touchpoints that may be taking too long. For instance, your company can use video interviews to make scheduling faster and easier early in the recruitment funnel. When the hiring process drags on you risk losing the best candidates to other opportunities. Keep in mind, you don’t want to go too far the other way and rush the recruitment process, because then you risk mis-hires.
The Cost of Open Roles — It varies by position, but daily revenue loss for open roles can add up quickly. Yet often this figure stays out of sight and out of mind. Proactive HR departments calculate the cost to the company of vacancies in most positions and share the information with key players. The metric serves as an important motivator for hiring teams and the decision makers who provide staff and resources for recruiting.
Candidate Loss Rate — Tracking the number of candidates who drop out of the hiring processand at what pointcan show where your company can do better. If large numbers of people begin your online application, but don’t finish, you likely need to streamline the questions and requirements. You may discover your career page has a high bounce rate that indicates your employer brand needs a refresh. Or you may find a drop off of strong candidates between the first and second interview, which could indicate shortcomings in the candidate experience.
New Hire Retention Rates — Similar to the metric above, tracking the number of new hires who leave their roles within weeks or months of starting can reveal problems in the hiring process. It could indicate the day-to-day job didn’t truly match the job description, or your ideal candidate profile was slightly off. It could also indicate a weak onboarding process, which should give new hires the tools and support they need to get off to a strong start.
Recruiting metrics and analytics are powerful tools. When you dive into the data, you’ll actually discover clarity about big and small recruitment changes that will lead to better hiring.
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