What Are KPIs in Recruitment?
The performance and process of recruiting are measured by recruitment KPIs. They can highlight opportunities for development and demonstrate the worth and return on investment of particular recruitment initiatives.
Both well-known HR performance measures and those specific to recruiting includes in the KPIs to gauge the hiring process. For instance, in addition to KPIs like the length of the hiring process, the source of the hire, and the success of the sourcing channel, you may consider productivity levels and cultural fit.
Recruiting KPIs vs. Metrics
Metrics are indicators of how well your company is performing. Typically indicated by numerical data, such as the number of website visits or job applicants.
KPIs Are The Most Important Metrics
Which recruitment KPIs KPIs are the most useful? By definition, KPIs are the most important or crucial metrics for your company or division. KPIs are a technique to demonstrate how you are achieving or working toward certain company goals and should be related to those goals.
KPIs Are Boiled Down Into A Single Figure For Uncomplicated And Easy Communication
In order to make goal progress or performance improvement over time easier to spot, recruiting KPIs are sometimes provided as percentages, ratios, or single-digit values.
Performance-Based That Tie To Overall Business Objectives
The best hiring KPIs are performance-based and linked to overarching goals. A KPI will disclose the number of eligible candidates who are able to contribute to your organization, as opposed to simply looking at a metric like the number of applicants for a position that is open.
How To Use KPIs To Measure Recruitment Effectiveness
Use KPIs to track your progress and align your hiring efforts with the overall business strategy and objectives.
Pick hiring KPIs that are precise, measurable, doable, timely, and relevant (SMART). Select KPIs that demonstrate how your efforts are saving the company money, bringing in top talent, increasing efficiency, or otherwise reflecting the return on investment for recruitment costs because employing new employees is a significant operating expense.
Choose KPIs to demonstrate your value if your firm has additional unique objectives that can be related to recruitment. For instance, tightening up your recruitment funnel and selecting the best applicant for the job might help with retention efforts if new hire retention is a larger workforce planning aim.
Consider Industry, Company, And Position
To choose to recruit KPIs that best correspond with your entire HR and human capital management (HCM) strategy, consider your industry, company size, and position in the labor market. Select the KPIs that are most appropriate for your business and sector. Also, keep in mind that these could alter in the future.
Build An Efficient Recruitment Pipeline
A KPI for talent acquisition recruiting pipeline is a proactive method of hiring. It is a method of building an applicant pool for positions that are challenging to fill or have a high turnover rate.
It includes creating a reputation as a desirable place to work, identifying passive candidates, and maintaining contact with applications. Determine which teams, positions, or job categories may use some extra help and concentrate your efforts there. For instance, you might need to concentrate on strengthening the employment pipeline for and retention of your financial team.
Top Recruitment KPIs
The following list includes some of the most useful recruitment KPIs along with examples of how to utilize them to gauge performance.
1. Time To Hire
This KPI tracks how long it takes a candidate to accept a job offer after they are contacted about a position or begin the recruiting process.
Time to hire (or days to offer) is a crucial indicator of productivity and aids in pinpointing recruitment process bottlenecks. Top KPI for talent acquisition can quickly leave the market because they are in high demand as applicants. Therefore, reducing the time to employ can increase the quality of hires you make while also lowering expenditures. Additionally, keeping an eye on this KPI can help in hiring for particular deadlines or results.
When to begin the hiring process for a new project or product line can be determined, for example, if you are aware of how long it typically takes to hire new salesmen and customer care representatives. It’s a crucial measure for labor planning and HCM strategy.
Organize and monitor hiring time by team, department, and hiring managers. If you utilize external recruiting agencies, track a different time-to-hire KPI for recruitment consultants and a KPI for recruitment managers. To automatically track and arrange this data, use an applicant tracking system (ATS) or human resources management system (HRMS).
2. Sourcing Channel Efficiency
This KPI evaluates the effectiveness of the channels via which you source candidates or post job openings. It aids in your understanding of candidate sourcing strategies and the return on investment of various sourcing pipelines.
Understanding the sourcing channel efficiency KPI enables you to create efficient sourcing plans and enhance the hiring process as a whole. Set up conversion monitoring tools like Google Analytics or make use of analytics provided by third-party applications to measure and monitor this KPI.
Track sourcing channel information for each candidate using your ATS or HRMS platform. Utilize the data to identify trends and compare outcomes to relevant recruitment KPI metrics including cost of the sourcing channel, application drop-off rate, cost per hire, and efficacy of the recruitment funnel.
3. Number Of Qualified Candidates
Utilize this KPI to evaluate the success of your sourcing efforts in locating and advancing eligible resources through the hiring process. It is quantified as a ratio of qualified applicants who advance past the screening stage of hiring.
How then do you determine what qualifies a candidate? There are various strategies you can use. The simplest is to simply inquire or survey hiring managers regarding the suitability of the candidates who make it beyond the screening stage. If you can’t, you can also take a look at other measures.
4. Submit To Interview Ratio
This KPI examines the volume of applicants who are sent to hiring managers for potential interviews. Because only competent individuals who satisfy the manager’s criteria should emerge from the sourcing and screening process, a larger percentage may be a sign of sourcing and screening problems.
5. Interview To Offer Ratio
Although interviews are essential to the hiring process, both candidates and hiring managers may find them to be time-consuming. A greater cost per hire results from a poor interview-to-offer ratio. Other recruitment KPIs, such as applicant experience and net promoter score, also heavily relies on interviews (NPS).
6. Offer Acceptance Rate
You want the candidates to accept the job offer after you have located qualified individuals and have put them through the screening and interview procedure. If they don’t, there can be problems with your salary and benefits plan or the reputation of your business. Working with your finance team can improve the offer acceptance rate and help to develop a proactive retention plan.
7. Cost Per Hire
What does it cost to fill a post that is open? This KPI account for all expenses, such as the cost of posting the position on various job boards, referral fees, travel expenses for attending job fairs, etc. You should also factor in the time spent by the HR recruitment team and, if possible, the cost of hiring additional people to assist with the hiring and training of new hires, as well as the time spent conducting interviews and onboarding.
By taking a broader view of this situation, you can begin to identify areas where efficiency can be increased, as well as support attempts to increase staff retention. It’s also a crucial indicator of your hiring budget.
8. Quality Of Hire
There is no one method that works for everyone for judging the quality of your hire. This is typically a collection of recruitment KPI metrics that might range from new hire attrition to employee productivity at the three-, six-, and 12-month marks. Pre-hire quality and post-hire quality are the two main criteria that are used to classify this.
