In part one of our series on recruiting metrics, we talked about five essential metrics HR professionals need for a meaningful analysis. With the appropriate metrics, HR professionals can determine the most effective sources of hire, total costs per hire and gain insights into optimizing further by adjusting the many variables. This analytical data can assist recruiters in improving their future performance, based on an analysis of their previous activity and corresponding results. In addition, it can help them to compile management reports for their supervisors, providing an overview of the key hiring metrics. Eventually, senior management is also interested in how well their investment in recruitment activities is paying off.
Here are five more metrics recruiters should study when looking at how to get the most of the hiring process.
Did you know that employee referrals accounted for 28 percent of all external hires last year? With that in mind, referral rates should be an important recruitment metric all HR professionals need to report since they are becoming more and more important in the candidate sourcing process.
Let’s say 20 percent of all of your hires came from employee referrals, former colleagues or members of their network. Since referrals are considered one of the best sources of quality candidates, hiring managers can clearly see that referrals via social media are an increasing and highly effective source of quality candidates that will likely be a great fit for the organization and will be contributing to its success for the long run. As a result, more resources should be reserved to improve or create employee referral programs and using social recruiting as a means to do that.
Employee turnover is the rate at which a company gains or loses employees. This rate of traffic through your company’s revolving door can say a lot about the company and how much money you might be losing in the recruiting process. There is no “correct” number for turnover, instead it usually depends on the industry you are in. Some have a higher turnover than others and you need to know the average turnover for your particular industry.
If your turnover is higher than average, you first need to know that and then do something about it. In general, the lower this number is the better it is. Replacing employees too often is not only costly and time consuming, it also means that too many people in your organization may be spending too much time on coming up to speed and leaving too soon to be able to add any real value to the company. Once you know the turnover rate, you can find out the reasons associated with the turnover. You will find out that turnover rates are quite often a reflection of the effectiveness of the recruitment processes.
Predictive analysis is when a variety of metrics and figures are used to predict a certain outcome. For example, recently Target came under fire for using their own predictive analysis to figure out when certain subsets of their consumers would become pregnant. Target then used this information to target specific advertising at these consumers. When it comes to HR, these outcomes often have to do with recruitment success and employee turnover. Using metrics like turnover, employee engagement and productivity, hiring managers can get a good view of what the future might look like. It will not be 100 percent accurate, but it will help hiring managers and recruiters stay ahead of the curve.
It is always important for recruiters to continue to develop relationships with great candidates. These candidates are then put in what is called a “pipeline”, a store of qualified potential hires recruiters can call when positions need to be filled. Developing a pipeline of quality potential hires is a great way to cut down on the hiring process and save your company time and money. Often pipeline development is tracked through a good CRM, allowing recruiters to keep track of all their various employee leads. Pipeline development is great for cutting down on the key metrics we have previously covered like cost-per-hire, time-to-hire, and quality of hire. This is because recruiters have already established a relationship with great potential candidates, cutting down on the sourcing stage of recruitment.
It’s always a good idea to get feedback from those who have been recently interviewed for a certain position. They are in the best position to comment on the company’s recruitment strategy and processes from a candidate’s perspective. In addition, request similar information from those who did not accept the job and those who went through the process but were not offered a position.
Sending out a survey is easy to do. Make sure you collect feedback from all stakeholders who have participated in the hiring process. This could include the interviewers as well. For those who did not get hired, questions can include where they heard about the company and the job, their overall feelings about the application, if they felt the questions asked were easy to respond to, if they would be interested in another position at the company, or how was their experience with the communication (or lack thereof) from the recruiter or the company in general.
These post-recruitment surveys can help you identify some of the critical gaps that you may have missed but others can notice in your recruitment process. They can also bring clarity to or visibility into some of those areas that were not specifically addressed through the other metrics. Collecting and processing feedback in an effective and organized way gives you an inside view into how candidates feel about your recruitment process. It also provides you with a sense for the various perspectives from all other stakeholders involved in the process. All of this information represents critical data that can be analysed and used for making future recruitment campaigns more effective.
What do you think? What are some other recruitment metrics to keep in mind?