10 Talent Acquisition Metrics to Create a Data-Driven Recruiting Process
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We’ve all heard of the term “Data Driven Hiring Process.”
However, do you know how to make the most of it by utilizing recruitment analytics?
There are a few talent acquisition metrics that might help you figure out if you’re hiring the right individuals for your organization and getting a good return on your investment (ROI).
So, what exactly do we mean when we mention Recruitment Metrics?
Recruitment metrics are statistics that are used to assess recruiting performance and improve an organization’s candidate hiring process.
These metrics can help you analyze the recruiting process if you apply them effectively.
Now that you understand what recruiting metrics are, you must understand which recruitment metrics your organization should focus on.
Some of the most popular recruiting performance metrics are critical for your talent acquisition leaders to understand. Here are some metrics to help you in your recruiting efforts.
- Time to Fill
This statistic measures the number of days that pass between when a position is listed and when an applicant accepts an offer. Because great candidates are frequently hired fast, improving time to fill performance gives you a competitive recruitment advantage.
Time to fill = # of days of job openings / total number of job openings
- Time to recruit
The time it takes to recruit is comparable to the time it takes to fill a position. Except that this statistic takes into account the time between when the position is listed and the candidate’s first day on the job. And, like the time to fill, this is a useful metric for determining the effectiveness of your recruitment funnel or talent pipeline.
Time to recruit = # of days spent between the time the job was posted and the first day on the job
- Time Spent on Each Step of the Recruiting Process
There are several steps in the hiring process. They are as follows:
- 1) Application
- 2) Interview
- 3) Evaluation
- 4) Reference check
- 5) Contract, final offer, and discussions
You may identify areas for improvement by breaking down how long candidates typically spend in each of the different phases.
Time Spent on Each Step of the Recruiting Process = Total number of days required to screen all applications for all open posts in a certain period of time / total number of open positions at the same time.
- Offer Acceptance Rate
The percentage of candidates that accept employment offers is known as the offer acceptance rate. This score is a good indicator of how competitive a company’s recruiting and pay initiatives are. Comparing first-time offer acceptance rates to subsequent offer acceptance rates will provide you fresh insights into your hiring process.
Offer Acceptance Rate = # of offers made / # of offers accepted
- Source of hire
The source of hire identifies where your applicants come from. Career sites, job boards, social media sites, job fairs, agencies, employee referrals, and intranet sites are all possible sources. This statistic may be used to identify the best suppliers for your firm, as well as particular teams and jobs. To get the most out of your money, allocate resources correctly.
- Quality of hire
Based on productivity KPIs and other metrics like performance reviews, employee engagement, cultural fit, and management satisfaction ratings, quality of hiring gauges the value that new workers contribute. These figures are derived from surveys and measurable data such as sales quotas, salary information, and retention rates.
- Job Satisfaction of Candidates
Candidate job satisfaction is measured via survey data from new hires. This measure may be used to assess how an applicant feels about the company’s culture, perks, job duties, and the hiring process.
Periodically conduct complete job satisfaction surveys.
Job Satisfaction of Candidates = # of workers who say they are very or extremely happy with the recruiting process / total number of questionnaires completed
- Cost per hire
The cost per hire, also known as the cost to fill, is a metric that evaluates the costs associated with filling a single job opportunity. It may be used to justify retention efforts, and decreasing your cost per hire is an excellent approach to show how improved recruitment procedures relate to business goals.
Costs of Internal Recruiting
In order to calculate the cost per hiring, you must gather and report accurate internal and external recruitment costs. Salaries, commissions, recruiting expenditures, technology, and infrastructure are all included in internal recruiting costs.
Costs of External Recruiting
Staffing agencies, advertising, recruiting events, and travel expenses are examples of external expenditures.
Cost Per Hire by Category
This metric varies by position, leadership role and the source of hire.
cost per hire = Total recruitment costs (internal + external) / total hires
- Referral rate
The number of new employees resulting from employee referrals is measured by the referral rate. This statistic may be used to assess the effectiveness of internal engagement programs. It also provides you information into how your employees feel about their jobs—if they’re happy and engaged, they’re more likely to tell others about it.
referral rate = # of hires via recommendations in a particular period / # of hires in the same time
- Turnover Rate
This measure also exemplifies how recruiting may be linked to broader corporate goals. A high turnover rate raises the cost of recruitment. Recruiting may affect the turnover rate by finding the ideal applicant who has the experience and fits well with the corporate culture, whether they leave voluntarily or because they aren’t the proper fit for the position and are let go. Employee retention initiatives can also be justified using the turnover rate.
Turnover Rate = (# of employee separations throughout the given period) / (total # of workers at the start of the specified period + number of employees at the end of the period/2)) X 100
Use a recruitment dashboard to get a quick overview of important indicators and a visual representation of historical data from all recruiting departments. This data-driven decision-making tool can assist you in posing and answering questions regarding the cost-effectiveness and return on investment of recruiting efforts.