These are the recruitment metrics you need to track to organize a quick and effective recruitment process.
A recruitment process is a necessary step every company must take. However, how your company organizes this process is crucial, as it can make a world of difference for your business and employees. You must consider plenty of things when hiring new staff, from the time required to fill a specific position to allocating the recruitment budget.
You can come across quality applicants with a good recruitment organization in record time. Analytics in recruitment can help you immensely in this process, making it an essential feature. Read on to learn everything about recruitment metrics best practices.
Top 7 recruitment metrics practices
1. Time to fill
The time to fill refers to the time it takes a company or recruitment team to find an appropriate candidate and fill an open position in an organization. It is one of the key recruitment metrics because it directly impacts your company’s performance and the ability to hire the most promising talent.
The average time to fill in a position is 42 days. However, this number can significantly vary depending on your company’s industry, so the time to fill can range anywhere between 14 days and two months. For example, hiring an experienced surgeon will take longer than hiring a call center representative.
Because of this, it’s essential to calculate the time-to-fill metric to organize a talent acquisition team and find best practices to operate until the position is filled.
2. Cost to fill
This metric calculates the cost to fill a specific position. From attracting more candidates to financing the onboarding program, many resources go into hiring new talent. While this metric isn’t crucial for large, successful enterprises, it certainly affects the budget of some smaller businesses.
In most cases, a decreased time to fill a position means lower costs. However, hiring top-quality staff justifies increased expenditures. Although the cost-to-fill metric shouldn’t drive your recruitment process, it can help you steer it in the right direction.
3. Quality of hire
The quality-of-hire metric determines the percentage of accepted candidates that don’t leave the position. It enables the company to learn more about how effective the recruitment team is in finding quality and loyal employees.
When recruitment teams submit low-quality talent, the hiring staff wastes plenty of time and resources to filter through them and identify valuable candidates. A while ago, recruitment teams had to alter their methods for submitting candidates, but the process can be different now.
With state-of-the-art tools and AI, recruiters can easily reach top talents for every open position.
4. Interview-to-hire ratio
The interview-to-hire ratio is another metric that allows you to calculate the quality of hire within your organization. Essentially, this metric calculates how many applicants interviewed for the position are ultimately hired.
This metric is an excellent source of information if you want to inspect the sourcing and screening parts of the recruitment process. A good interview-to-hire ratio shows an efficient hiring process.
5. Offer acceptance rate
This metric calculates how many people accept the position after a company offers them a job. Low acceptance rates can mean your offers are too slow or not competitive enough, while high acceptance rates signal companies their offers are superior to other similar businesses.
Naturally, this metric depends on the industry, too. For instance, hiring call center representatives must be done quickly, as the applicants are likely to get a similar job offer from a competitor company. If your recruitment team takes too long to make an offer, top candidates will likely go with a company that reaches out to them first.
6. Time in process step
Hiring new talent is a complex process that consists of multiple steps, with interviews, questionnaires, and onboarding programs being only some of them. Each of those steps requires plenty of time, which drags out the entire recruitment process.
While it’s impossible to eliminate all of those steps and still end up with quality workers, it’s possible to gain a deeper understanding of each step’s meaning and level of productivity. That allows recruitment teams to identify bottlenecks that may slow the effectiveness of the entire process.
Having that in mind, you’ll know where to make the necessary changes for the process to go smoother and quicker.
7. Application drop-off rate
Finally, the application drop-off rate is a metric that determines the number of applicants starting but not completing the application process.
Applications that require plenty of time or unnecessary information about their applicants will quickly be abandoned by the best candidates who aren’t comfortable with such a hiring process.
Improving the application process will create a better candidate experience, give your company access to top talent, and lower the application drop-off rate.
Having access to different recruitment metrics is the ultimate way to optimize your hiring process to deliver the best results. By focusing on the seven recruitment metrics mentioned in this article, you’ll be able to provide your company with an accurate, quick, and reliable process that’ll make finding new talent a piece of cake.