When it comes to recruiting, there are lots of metrics and analytics you can use to guide your strategy. No doubt you’re concerned about collecting people metrics; hiring sources, individual skill sets and experiences – these kinds of analytics help you with your task of filling vacancies. However, if you wat to create a more holistic and efficient recruiting organization, there is an entirely separate set of numbers you should be looking at.
Using workforce measurements— measurements with a goal in mind — allows you to gauge quantifiable components of a company’s performance. Metrics reflect critical factors for success and help a company measure its progress towards strategic goals – and empowers you to make adjustments to your recruiting strategy and tactics to help your organization better hit those performance indicators.
However, not all recruiting metrics are created equal. Even with standard metrics for retention and attrition in place, some companies also track dozens of meaningless metrics, not tied to specific business goals and not helping to improve business outcomes. You’re far better off gathering a limited number of metrics that you actually analyze and then act upon.
If you want recruiting metrics that can actually give you insight into how your process is affecting the organization, then this is what you need to track:
1. New Growth vs. Attrition Rates
What percentage of the positions you fill are new hires versus filling positions left vacant by attrition? This comparison shows what true growth really looks like in your organization. If you are hiring mostly due to attrition, it would indicate that selection, talent engagement, development and succession planning all need attention, as you’re spending a disproportionate amount of time replacing people who leave. You can also break this metric down by division/department, by manager and more for a more granular insight to make spot-adjustments to your hiring.
2. Quality of Hire
While quality of hire might sound like an amorphous thing, it’s actually a measurable, attainable metric. Measure individual job performance, leadership development and ability to act as a top performer, their length of tenure at the organization, and how they learn on the job and grow into additional responsibilities at the job to determine the quality of that hire. Then, use that information to inform your recruiting to identify and attract other high-quality hires.
Sourcing is an important recruiting element that will benefit from tracking quality of hires – once you know where your organization’s best performers come from, you can concentrate your efforts there to find other high-quality candidates. Measuring sourcing should go just beyond which sources are effective, but also look at why they are working. Quick tip: to calculate the percentage rate for a specific source, divide the number of source hires by the number of external hires. (For example, divide the number of hires from your LinkedIn Careers page by the total external hires to gauge what percentage of your hires came from LinkedIn.)
4. Effectiveness Ratio
How many openings do you have versus how many you’re actually filling? Recruiter productivity is a major point of emphasis for organizations in this candidate-driven climate, so you should be monitoring how well you’re filling your organization’s open positions. You can also measure your recruitment rate by dividing the total number of new hires per year by the total number of regular headcount reporting to work each year. Your requisitions filled percentage can be tallied by dividing the total number of filled requisitions by the total number of approved requisitions.
5. Candidate Satisfaction Rating
Most organizations don’t pay as much attention to this candidate experience metric than the other four, but it’s still an important one to track. Satisfaction ratings can be gathered from candidate surveys, as well as new hires and current employees looking for internal mobility. While your overall metrics may be positive, it’s important to find out how people experience your hiring process. After all, it’s the candidate’s market now; when job seekers are in the driver’s seat, you need to make your hiring process as intuitive and navigable as possible.
Recruiting metrics are the building blocks to a company’s talent analytics. Knowing what to track and how in order to attain recruiting goals as well as overall business goals are critically important components to a successful recruiting team. The right talent acquisition technology partner will empower you to better track these metrics; learn more about how PeopleFluent is a talent acquisition leader according to industry analysts IDC and buyers worldwide.