Like any other area of your business it is essential that you keep a firm handle on key statistics relating to your recruitment efforts on an ongoing basis. This will ensure that you are able to assess not only what your company is doing well, but more importantly to highlight key areas of concern which require increased effort to glean success.
The level of detail you choose to monitor will vary according to your personal needs but we advise a bare minimum across the board as essential to monitor the success of your team’s efforts and to be able to give a realistic insight to the wider business when looking to recruit.
Outlined below are the key common metrics which are often monitored:
Source of Hire:
This is by far the most common, and essential metric which is used by most businesses and ultimately monitors where your individual hires are joining your organisation from. By keeping track on this you can identify those areas which are proving successful and therefore justify further investment as well as those channels which are falling down in their efforts. Common channels which are monitored include internal job boards, external recruitment agencies, company career page and social media activity.
Following your initial screening process, a qualified candidate can be determined as relevant once they have passed an initial telephone interview. Or if monitoring activity via an external recruitment company, a candidate who you feel fits the role competencies following CV analysis and is therefore invited in for a first stage interview.
This statistic will give you a sound insight to how effective your relevant advertising or external supplier is at driving quality candidates against a specific role as well as monitoring your internal teams understanding and appreciation of the roles they are recruiting for. You are basically putting the effort firmly on the quality over quantity which is what every hiring manager should be driving for when recruiting. You should monitor the initial responses versus Qualified Candidate to show overall effectiveness.
Measuring Qualified Candidates will also enable you to predict your ability to achieve key recruitment targets and aid in your forecasting when reporting back on activity to senior managers.
Interview to Offer:
This stat should be broken down further according to the number of interviews in the process so will ultimately show 1st interviews to 2nd interview and 2nd interview to offer (assuming it is a two stage process).
Beyond allowing you to provide sound expectations to the business when hiring and allowing you to forecast your successes as a recruitment team, this is a crucial statistic to identify whether there are any issues at interview stage within your organisation. An additional stat worth implementing here would be 2nd interview requested to 2nd interview accepted. A low ratio using this statistic could be highlighting poor interviewing from a hiring manager or too much time being taken during the hiring process.
Offer Acceptance Rate:
A straightforward stat, but arguably one of the most important ones to monitor in any organisation. No employer can expect to achieve 100% here but monitoring outcome with additional detail of any key feedback trends will allow you to align and focus a need where necessary, such as whether your salaries and benefits remain competitive. You can also gain detailed insight to a key area or competitors approach to staff retention, such as counter offers or promotion upon resignation.
It is advisable to break this down by department to allow for the additional monitoring of a Hiring Managers personal success rate when extending offers, again ensuring they are performing well as part of the interview process.
Time to Fill:
Put simply, this metric calculates the number of days a position remains open before being successfully filled and with all positions combined across the business you will reach the overall company average.
However, many things can happen during the process which can influence this metric negatively and it is therefore important to factor this in when monitoring results. For example, how quickly are interviews being scheduled? Are there any delays during the process due to hiring managers’ lack of availability for interview or holiday/sickness?
It is therefore advisable to work towards an average across your business but to further monitor roles individually and address any key issues along the way to identify needs for improvement.
Hires to Goal:
Your Recruitment Team will need to have a key target as a team and as individuals to allow you to monitor the overall success of the function and ensure the team is suitably resourced to achieve business goals while also highlighting any individual key performance issues. This should be regularly discussed and monitored as a team to ensure you remain on track for success but more importantly are able to assess any areas of the process which is not functioning correctly.
It is expected that this will be predetermined as an annual target but should be broken down further and monitored consistently on a monthly and quarterly basis.
Candidate Retention Rate:
This metric allows you to assess the quality of hires being bought into the business alongside allowing you to identify any issues with key teams who show a higher turnover.
Candidates who leave within their first year, for whatever reason, ultimately costs the business considerable money and ultimately reflect on the efforts of the internal recruitment team if not monitored to give further insight.
Beyond the basic statistic showing a percentage of poor retention, you should also monitor the reason for the candidate failure. There are two points to assess which are Managed Attrition, meaning that the contract was terminated by the employer and Unmanaged Attrition, meaning they leave of their own accord. The former identifies a bad first year performance or team fit and can therefore be labelled as a bad recruitment mistake. The latter is an indicator of unrealistic expectation which could be a mismatch between the job spec and the actual job or the position has been wrongly represented by the recruiter or line manager. This highlights an issue within your business. Both issues require further investigation to ensure ongoing issues don’t continue.
Quality of Hire:
In order to give a clear guide here, you will need to fully measure a new hires performance throughout their first year. This is likely to be completed in line with relevant HR information with candidates receiving high first year performance ratings being considered a hiring success with the opposite being true of low performing candidates.
Low first year performance ratings are concluded as a bad hire and can cost a business considerably. Combine this with the relevant channel for these hires you can assess channel quality.
Cost Per Hire:
Your Cost Per Hire outlines the total cost invested in your hiring efforts divided by the number of hires your business has made.
This metric will take into account all areas of your efforts and combined with other metrics, such as Source of Hire, you can effectively tailor your overall Recruitment budget.
Likely inputs to combine include:
- Talent Acquisition team wages
- External Agency Recruitment fees
- Advertising costs
- Candidate expenses reimbursed
- Candidate Entertainment
Candidate experience is an essential metric to monitor to identify how a job seeker perceives your company’s recruitment and onboarding process. Ordinarily completed through the use of a survey or forming part of the candidates’ introduction interview this will aid you in identifying any areas of the process which can be improved.
Social Media Channel Effectiveness:
Monitoring your social media channel effectiveness allows you to assess which is most effective and subsequently which channels warrant increased or reduced investment. Google Analytics will allow you to track where the people who viewed the job on your personal website actually came from. This can be taken a stage further to assess the percentage of these visitors who actually completed an application form to give greater accuracy and highlight the quality of the lead beyond the initial visiting stage.
By comparing these applications against money spent with the relevant channel you will also be able to give a cost per application as well as an isolated cost per hire (relevant to channel only, and not to be confused with a total cost per hire which will take wider efforts into account).
The Diversity of your company’s workforce is increasingly important and essential to monitor. Equal Opportunity regulations prohibit discrimination on the basis of race, colour, religion, sex, pregnancy, national origin, age, disability, sexual orientation or genetic information and therefore it is essential that these are monitored to ensure you are attracting a diverse workforce.
To simply monitor and add qualifying people against your wider workforce will only give a limited stat and therefore it is strongly advised that you monitor based on the level of changes in minority representation to show improvements, changes in pay disparities, retention of underrepresented staff and sources of diversity hires.
In order for all of your metrics to give overall insight, you need to monitor your overall retention rate. After all, there is limited point in focusing on the early stages of the process to a period of 12 months if you have a further issue beyond this. Your retention rate will track the total employees who stay with your company over a given time frame, out of the total number of employees you had when the period began.
As your retention rate goes up, your turnover rate will ultimately go down and although a low retention rate is seen as a negative, by tracking this (bearing in mind it can be broken down by department as well as company) you will be well placed to handle any issues in your hiring process.
Above we have highlighted the more common forms of analysis which give the most relevant and important insight. Like any area of your business analysis, there will always be more ways to slice the pie, and of course, you may have specific areas of interest relevant to your individual company which can be monitored.
The important point to make however is that in order to monitor your activity and highlight success areas as well as areas for concern, you must engage some form of analysis to continually better your efforts. The success of gathering and retaining this information comes down to your internal processes and ownership as a central recruitment function. To implement all this activity can appear daunting as you are relying on information from a number of different sources. However, once this has been set up, ongoing management of your activity should be quite straightforward and will ensure that your recruitment function remains accountable across the business allowing you to focus your energy successfully when needed as a business for greater success.