HR managers should track recruitment KPIs to see if the process is bringing the desired candidates or not and make changes accordingly.
What’s the most challenging thing a recruitment team often encounters? Any guesses? Well, it’s talent acquisition. The talent pool is so diverse that approaching it with the right strategy may seem really difficult. People will not work with a company with a bad reputation, or one that doesn’t respect diversity, equity, and inclusion. HR managers use recruitment KPIs (Key Performance Indicators) to measure if a process is working or not. The right recruitment KPIs can make or break a company’s talent acquisition strategy. In the blog, we will have a look at recruitment KPIs, and how they can improve recruitment strategies.
The right KPIs depend on the industry, company size, market competition, and position. These metrics can make or break the recruitment game of your business:
Time to hire is a measure of the time taken between an applicant applying for a job and accepting the offer. This includes the days required to process, assess, interview, and decide. This can vary depending on the position, industry, and competition. Data shows that the average TTH is around 41 days.
If this duration is unnecessarily long, it may indicate an inefficient recruitment process. A job seeker will prefer to get hired within a month and, if possible, earlier. Nobody loves sitting in the dark for extended periods after giving an interview. This is a bad candidate experience, which can influence TTH.
Using talent acquisition software is the smartest way. You can screen the CVs received for a particular post and choose accordingly. This helps in building the recruitment process for hiring top talent without redundancies. It can help in candidate management, scheduling interviews, and managing the entire workflow. It can even track the TTH and compare it with the industry standards. This way, you can understand if your strategy is working or not, remove the bottlenecks, and try again.
A company uses many online recruitment channels to attract candidates for different positions. Not all sources will provide the same results, thus, you need to measure the efficiency. How will you do it? By checking how many qualified candidates are coming from a specific channel and the total number of candidates from all sources.
You will learn where people see your job advertisements and click them. Also, you can understand the trends, drop-offs, hiring costs, and channel effectiveness. If a channel is not delivering the expected results, then you might have to change it.
Time to fill is different from TTH, as it counts the days between when a job is posted and a candidate is hired. TTF is different from TTH, and the benchmark differs across industries. Low TTF means faster hiring and low business expenses.
A company uses job boards, social media, and the website’s career page to post vacancies. Instead of doing this manually, you can try using an applicant tracking system. From there, you can more easily manage data on your talent pool, filling out a database over time. For example, candidates you receive that may not be perfect for a job opening at the time but will be good for a different opening later. This information can be leveraged to fill positions and save time on screening. Also, you can look at the reports to analyze the recruitment team’s performance.
Quality of hire is a comprehensive metric used to assess a candidate’s capacities. It should be tracked along with TTH and the offer acceptance rate. You can learn about it by asking the hiring managers if they are happy with the candidate pool and to what degree.
The pre-hire satisfaction rate is the percentage of hiring managers who are satisfied. After hiring, managers undertake regular performance reviews quarterly, semi-annually, and annually. This is done to understand how long it takes for a candidate to perform well, and how they fare compared to peers. Are they a good fit for the company culture? It is necessary to understand the attrition rate and employee satisfaction too. Data collected during this phase will constitute the post-hire satisfaction rate.
Talent acquisition software can track a candidate’s progress from the joining date. This can be done through remote proctoring and competency assessments to get unbiased responses. You can dig deeper and see why they are performing well or not so well and offer appropriate help. This will also boost candidate satisfaction and performance.
Cost per hire is a metric you need to understand if you have to change the budget for HR processes (recruitment). It considers the cost of posting the job on job boards, referral programs, and physical visits. But it also considers the time required by the team to hire, onboard, and train people. It means calculating the total cost against the number of people hired. This is a measure of efficiency, and you can identify areas of concern and how to improve them.
The budget for recruitment can be optimized by developing a dedicated talent pipeline. After scouting candidates, HR managers have to engage with them to keep them updated. But it is necessary to use the proper assessment tools to understand who is the right fit. Conducting video interviews through HR tools can be beneficial too. Internal hiring can also be an excellent way of optimizing the budget. Moreover, a company can encourage employee referrals to improve CPH.
The offer acceptance rate is the likelihood of a candidate accepting a job offer. If this is higher, the interview processes are successful, seamless, and streamlined.
OAR will be poor if too many candidates are rejecting the company’s offer. These people might be dissatisfied with the compensation, benefits, working hours, or the work culture. In rare cases, they might reject due to a better opportunity or personal constraints. But most people will refrain from accepting the offer if the company has a bad reputation and non-competitive packages. The deal breaker, though, is a bad candidate experience.
So if you want to improve this KPI, you should work on the job offer and improve the company’s reputation. You can pinpoint the reason for rejecting the offer by asking them to fill in a survey to gain insights.
Interviews to hire depicts the number of candidates being interviewed for a position. This depends on getting candidates with the relevant experience, skills, and strong aptitude.
This KPI can be improved by writing clear job descriptions for those vacancies. Also, pre-interview assessment tests can screen candidates beforehand, making this process streamlined.
Recruitment KPIs show the fields where more effort is needed. Without them, you won’t have a clear idea of what’s happening or what to expect. If that happens, you will hire candidates that are not a good fit, causing dissatisfaction in the company.
While deciding on which KPIs to track, you have to consider the company size, niche, and competition in the market. Metrics such as time to hire, time to fill, cost per hire, etc. should be tracked as they give valuable insights on efficiency.
One way to do this is to use automation for recruiting or a candidate tracking system like PYPA Hire. This software tracks applicants and helps with management, collaboration, communication, and interview scheduling.
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