Making the right recruiting decision is vital as any mistake can be costly and potentially damaging to any business. Thankfully, recruitment metrics can be utilised to maximise recruiting success for a business and optimise the whole recruiting process for candidates. After all, if we don’t measure what we do, how can we tell if it’s working and know where we can make improvements?
In our data driven culture the power of numbers is immense and talent acquisition leaders are expected to not only have the strategies in place to capture the data but also understand what the recruiting metrics actually mean. However, if they were to keep track of every recruiting metric, they probably wouldn’t have the time to actually do any recruiting. Therefore, it is essential to identify the key metrics to measure effectiveness and success. We have made a list of top 3 recruitment metrics that every leader should measure:
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Time to Fill/Hire
Time to fill is the time it takes to identify the need to recruit until the successful candidate’s first day of work. This is a vital metric as not only is it key for planning but it can be broken down into so many more variables including:
- At what stage in the process bottlenecks are happening.
- Days to first contact after application.
- Days to interview.
- Days to contact after an interview.
- Days to offer – which allows you to measure your candidate experience.
- Offer rejection metrics.
Knowing where the bottlenecks are in your recruiting processl can tell you where improvements are needed and who in your team is falling behind. However, above all measuring time to fill allows you to stand a fighting chance in the war for talent and directly impacts your ability to hire the very best talent.
Presently, time to hire can differ from between 27 – 68 days, with an average of 42, however the best candidates are off the market after 10 days. So, unless you measure and optimise this metric you are not only losing the best candidates to your competition but are allowing a longer process that can impact negatively on the business with a loss of productivity.
Back out ratio/offer acceptance rate
The back out ratio/offer acceptance rate is the number of candidates who successfully accept a job offer compared with the number of candidates who received an offer. A low rate can highlight serious issues and emphasises that you are not converting applicants who have taken time to apply, can indicate a low candidate experience. It also can stress that you are taking too long during the recruiting process or are offering salary and benefit packages less than the industry standards.
Every coin has two sides. It’s not always the recruiters who have not given their 100% in converting the candidate into employee. There are times, when candidates back-out for some reason and sometimes for no reason; irrespective of the opportunities and benefits provided by the employee.
Hence, the higher the conversion rate the better as it ensures that you are getting the best return on time invested, as taking time and care on candidates throughout the whole recruiting process means nothing without an accepted offer.
It is vital to challenge any poor performance within this metric as it is not just the recruiter’s time that will have been wasted. Unsatisfied candidates who have spent time and money going through lengthy application processes, but have pulled out will often use their voice on social media to moan and complain which can impact perceptions for both customers and future candidates.
Quality of hire
Quality of Hire compares candidates recruited and those that do not leave, often within a year, indicating the effectiveness of the recruiting team in identifying quality and loyal talent. This is a metric that is tremendously informative as it ultimately highlights if valuable resources are wasted hiring low quality talent and gives insights into improving how recruiting is conducted and where candidates are sourced from.
It is one of the harder metrics to calculate. However, it allows performance reviews to assist in benchmarking best practice for recruiting success.
The need for and benefits of recruiting metrics is unquestionable, however measuring success is difficult and this is one of the primary reasons why recruitment process outsourcing (RPO) companies like IMS one world thrive. We have spent years fine tuning our measurement techniques and strategies and are very proud of our very impressive results, such as our back out ratio of less than 2%, the lowest in the industry.
IMS One World can offer fully certified teams, trusted by 130 brands worldwide, who are always ready to offer rapid, bespoke, measurable and accountable solutions to your contract staffing needs – on time and on budget. Contact for more information: email@example.com