Like any other business process, there is a rapid awakening among organizations about the importance of embracing a data-driven approach towards HR too. While there are multiple aspects of this, recruitment is one that is extremely crucial. Well, talking about gauging the efficiency of recruitment, in particular, popular recruitment metrics like the ones discussed in this article are widely used by organizations. Let’s have a look at some of them:
Source of hire
To understand the returns out of the investments being made by the organization on various recruitment channels, it is important to trace back the source of successful hires. A few examples could be the company’s hiring page, social media, different job listing portals, consulting agencies, etc.
Applicants per position
The number of applicants per position helps us understand whether the job posting is visible enough to the right audience. It helps gauge the job description’s relevance and popularity. At the same time helps us understand if the job description is too broad, which is also indicated by an extremely high number of applications.
Time to fill
The time between raising a job requisition to finding and hiring a new candidate is the time to fill or TTF. It’s a very effective indicator of the implications of unplanned exits, as well as helps in estimating the optimum time in hiring. Additionally, a shorter time to fill a position is expected to have a positive effect on the rest of the team as well, because it means less overtime and instability for the team as a whole.
Time to hire
Number of days between approaching a candidate and getting them to accept the job at your organization is essentially the time to hire. Broadly, it is a subset of the time to fill. Often known as the ‘time to accept’, it is a metric to understand the efficiency of the hiring team.
Cost per hire
This one means exactly what it says on the tin. It is the total internal and external costs of hiring divided by the total number of people hired successfully. Some external costs can be the cost of advertising, agency fees, candidate expenses like travel and accommodation. On the other hand, the biggest internal cost that organizations have to bear is the loss of efficiency, along with others like time spent in onboarding and training of the new employee by existing employees etc.
Offer acceptance rate
Making an offer to the selected candidate is definitely not the end of the road of your successful recruitment journey. There is a strong probability of drop-offs even after issuing the offer letter! A low acceptance rate can stem from multiple issues like mismatch in compensation expectation or disengagement or even a delay in issue of the offer letter itself.
Once the new employee is onboard, their productivity follows a graph of increase with time. It takes some time for them to reach their maximum potential. Therefore, the first-year attrition is a key recruiting metric to analyze hiring success. Candidates who leave within the first year of work are ones that fail to become fully productive and usually cost a lot of money and effort to the organization.
Recruitment funnel effectiveness
Beginning at sourcing and ending at signing off employment contract, the recruitment funnel essentially sums up most of the recruitment process in a nutshell. An important metric to understand the effectiveness of the recruitment funnel is the yield ratio per step. This is one of the most precise methods of measuring the ROI of the recruitment process. Yield ratio is the ratio of candidates who move to the next stage of hiring from the previous one.
The way of measuring and evaluating these metrics have changed a lot over the last few years due to advances in HR Technology. For eg, the first few steps of the recruitment funnel are now automated. With features like AI-driven CV parsing, stack ranking etc., are brought to organizations through new age HR Tech like ours. Some companies also leverage video interviews early on and even that has an impact on the yield ratios. Here are the top recruitment trends for 2019 that you can watch out for a deeper understanding of what's going to be the new buzz for recruitment this year. Considering the influx of millennials and the even more tech and engagement-savvy gen-z, our platform is also built to engage your incoming talent better between issuing the offer letter and onboarding to prevent a drop-off in the process.
To understand more new age, exciting features offered by Darwinbox, get in touch with us today.