5 Key Recruitment Metrics for Successful Hiring
by Chris Drake
Crosschq, Head of Data
September, 2, 2021
A hiring manager is responsible for a wide array of aspects pertaining to the recruitment process, including, but not limited to, writing the job description, advertising the job opening to attract ideal candidates, defining the responsibilities of the hiring team, screening incoming resumes, curating the recruitment process, conducting reference checks, and doing all of this at the lowest cost possible.
A recent PricewaterhouseCoopers study suggests that HR costs sum up to a whopping 28% of a company’s total operating expenses. If you’re looking to lower costs, then what are the key recruitment metrics you need to use to drive efficiency?
5 Key Recruitment Metrics to Enhance Hiring Efficiency
For any hiring manager to ensure that the recruitment process is as productive as possible, while being cost-effective, the following key recruiting metrics can prove to be more than a blessing. Recruiting metrics are measurements that offer insights into the effectiveness and value of the recruiting process. These invaluable insights can then be used to analyze which aspects of the process require improvements, and to what extent.
Here are the Top 5 Key Recruiting Metrics to Watch:
- Cost Per Hire Metric
Cost Per Hire, ( CPH) is essentially the cost that a company incurs every time it fills an open job position. CPH is calculated by including various costs such as advertising expenses, cost of a recruiting event, salaries of the HR personnel, fees paid towards recruitment software, relocation allowance, and more. Since the average cost per hire is $4,000 it can have a major impact on the bottom line of small-scale businesses. And hence, recruiting managers need to ensure that this cost stays as low as possible.
- Time to Fill Metric
As the name suggests, Time to Fill essentially measures the time, right from the opening of a job position to bringing a candidate onboard. While the time to fill varies largely based on the job profile, the company, and the available talent pool within the given region, it definitely shines a light on some of the crucial aspects of the hiring process. These include – the speed of qualified candidates applying for the job, and the speed of hiring the right candidate, as well as the bottlenecks in the hiring process (if any).
As you may have inferred, the shorter the time to fill, the more efficient is the recruiting process! That said, hiring the ideal candidate is of immense value to the company and its future, hence, as a recruiting manager you need to find just the right balance between expediting the process and still being able to source, interview, reference check, and hire the best possible candidate.
- Source of Hire Metric
More often than not, candidates for a job profile either get to know about the opening via a job board, an employee referral, a professional network, or a recruiting agency. While every source has a role to play, in order to refine the recruiting process, you should pick the source that best serves your company’s interest. Once you have shortlisted a pool of candidates from all that applied for a given job position, you can then take the help of an applicant tracking software (ATS) to evaluate the source which is offering the most eligible applicants. This will ensure that going forward you are more focused on the high-yield source and consequently achieve a high conversion rate.
- Quality of Hire Metric
Quality of Hire = (Employee Performance + Hiring manager satisfaction + New Hire Fit)/3
While the quality of hire is largely calculated on the basis of employee performance, hiring manager’s satisfaction and how well the new hire fits in their role is primarily affected by a vast array of factors, including but not limited to -
- Job requisition
- Size of the candidate pool
- Recruiting process speed
- In-person interviews structure
- Reference check quality
- New hire expectations set
- New hire goal setting process
- Employee management (in the first 6 months post-hiring)
In order for the quality of hire to improve, it is up to you to give due consideration to each of the above factors and ensure that not only are you sourcing the candidate from the best talent pool, but are also putting them through a comprehensive recruitment process that ensures the selection of the fittest.
- Job Offer Conversion Rate Metric
Conversion rate is defined as the percentage of the candidates that accept the job as compared to the number of candidates who have been offered a job. A high acceptance rate implies that your job offer is competitive and vice versa. If your conversion rate is less than ideal, then you may need to reassess some aspects of the recruitment process including the number of stages a candidate has to go through, the speed of the recruitment process, and the actual compensation including the remuneration - the perks and the incentives which will eventually rule the candidate’s decision.
Key Recruitment Metrics FAQs
What are the Key Benefits of Recruitment Metric Software?
With the help of recruitment metric software, you will be able to enjoy the following features:
- Closed-loop measurement
- On-demand reporting and analytics
- Promote data-driven hiring
- Predict retention
- ML & AI feedback loop
- Benchmark vs other companies and industries
- Reduce the impact of poor hiring decisions
- Measure savings and efficiency
What is Meant by Recruiter Email Metrics?
Recruiter Email Metrics help in measuring the effect of recruiter emails on prospective candidates. Some of the most commonly used Recruiter Email Metrics are:
- Recruitment email open rate
- Recruitment Email response rate
- Recruitment email click-through rate
- Recruitment email conversion rates
To learn more about key recruitment metrics and how Crosschq can help you be more efficient in your hiring practices, schedule a personalized demo with a Crosschq team expert.