Hiring has always been a very complex & costly process. With digitalisation and technological advancements, the requirement for talent has changed.
Today, focus is more on skills than anything else.
And finding skilled talent has become the biggest challenge for HR managers across the world.
In order to succeed in the recruitment game, TA managers must take a metric driven approach.
What are Recruiting Metrics?
Recruiting or Hiring Metrics are KPIs used by the hiring managers to track their hiring process. These metrics help assess the recruitment process and provide helpful insights into what is working in the process and what needs improvement.
They help allocate resources efficiently to various programmes and channels. They also help ensure that your process is fair and inclusive.
Startups who tracked metrics were 58% more likely to hit their hiring goals. However, only 60% reported tracking their recruiting efforts.
Let us look at top 5 metrics that you should be tracking.
- Cost per Hire
- Time Taken to Hire
- Source of Hire
- Candidate Drop Off Rate
- Offer Acceptance Rate
- Cost per Hire
Cost per hire shows you the average cost per hire in a month or any given period. It can be calculated by dividing your total hiring cost by the number of recruitments.
It is an important metric to track because it shows you the average amount you are spending on hiring new employees.
Apart from helping cut down on unnecessary cost and create cost effective hiring strategies, this metric can enable you to build realistic recruitment budgets in the future.
- Time Taken to Hire
Time taken to hire is the number of days taken between publishing a job post to offering an offer letter to the candidate.
It is important to track this metric because it shows how efficient your recruitment process is.
If the data from the metric suggests that you are taking longer than the average time taken to fill such positions in similar industries or your own past benchmark, you will need to work on improving your hiring process.
If it is longer than the industry standards, you are losing out on good quality candidates.
- Source of Hire
Source of Hire metric tracks the channel that the new hire is sourced from.
With digitalisation, hiring is no longer restricted to only one source. There are multiple social media platforms and job boards that are used to source candidates.
Hence it is an important metric to track as it shows which source is more effective and worth spending money and time on.
Apart from the numbers of hires from each source, track the quality too. It will help the Hiring managers to plan and allocate budgets and efforts on the source that is most effective.
- Candidate Drop Off Rate
This metric measures the number of candidates that dropped off anytime during the hiring process.
It is measured by the dividing the number of candidates that appeared for an assessment/interview by the number of candidates that were invited or approached.
This is an important metric to track the candidate experience. If the candidate experience during the hiring process is not good, they are likely to drop off.
You need to assess your company’s candidate experience if you notice a high candidate drop off rate.
- Offer Acceptance Rate
You can calculate this rate by dividing the number of accepted offers by the number of offers made.
If this rate is low, it indicates there is an issue with the compensation or the candidate experience.
You can take feedback from the candidates and make improvements wherever possible.
- Employee Turnover
Most organisations are dealing with higher-than-normal resignations currently. Tracking Employee turnover becomes even more crucial now given the competition for skilled talent.
Tracking the number of employees leaving the company within the first 6 months of joining and their reason is very important.
Based on the results, you can assess if there is an issue with the communication during the hiring process, about the job description and expectations for gaps.
Hiring can be very time-consuming function for any business. These metrics can help you make your hiring process more effective and efficient.
To bring in highly competent and skilled talent at the shortest possible time, you can partner with Flexi Ventures, one of the leading IT staffing companies in India. We provide you with pre-screened candidates for contract and permanent employment. Connect with our expert recruiters today.
