There is much more to consider when an open position is filled, say recruiting, training, and onboarding all require time and money. Repeating this process after a bad hire not only costs money but also leads to decreased productivity and attrition.
A data-driven approach to recruitment offers undeniable benefits. When you measure your recruitment performance, it will help in refining and improving your recruitment process.
Here are 5 recruiting metrics that your recruiters should use to measure the success of their recruitment process.
5 Metrics that can Measure the Success of your Recruitment’s Effectiveness
#1. Sourcing channel effectiveness
Sourcing channel effectiveness metrics help in measuring the usefulness of your sourcing channels, say, job boards, and social media platforms thereby allowing you to verify which channels are working and effective.
Once you have identified which sources provide the greatest number of candidates, then you will be able to source the best quality candidates over time.
Sourcing Channel Effectiveness = No. of qualified candidates from a specific source – Avg. No. of applicants from all sources
#2. Qualified candidates per opening
A qualified candidate passes the application screening process and moves on to the next stages of the recruitment process.
This metric is really important for your company when your recruiters realize that they have attracted unfit candidates. It will allow your recruiters to set a new strategy to get a better fit in the recruiting funnel.
Qualified candidates per screening = No. of candidates selected for an interview/number of candidates presented to the hiring manager *100
#3. Cost-per-hire
The cost-per-hire metric lets you know what is the average amount of money your company spends to make a new hire.
Cost-per-hire is a key measure that informs about your recruiting budget, and helps in improving efficiency and retention rates that decrease employee turnover.
Cost-per-hire = Total recruitment cost/ No. of hires
[Total recruitment cost = Total Internal costs and Total External costs]
#4. Time-to-hire
Time to hire is essential in measuring efficiency and helps in identifying the bottlenecks in your recruitment process. Top talent can be off the market within a few weeks so keep your time to hire as short as possible.
If you know how long it will take on an average time to hire then it can help you to identify when to start the hiring process, which is an essential metric for Human Capital Management strategy and future workforce planning.
Time to Hire = Day candidate accepted offer – Day candidate entered the pipeline
#5. Attrition rate
Churn rate at which employees leave your organization. High attrition rates are a matter of concern for your recruiters as replacing top talent is costly both in terms of money and resources required to onboard new hires.
Your company can measure this metric to understand their employee satisfaction levels and shape their employee retention strategies accordingly.
Attrition Rate = No. of people who left the company / Avg. No. of employees across the year
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