The 5 Metrics You Need to be Tracking in Order to Better Understand Your Recruitment Process
Data analytics is used in almost all walks of life, whether it’s shaping a sports team roster to the way businesses market and communicate with customers.
The world of HR and recruitment is no different. Data is an incredibly powerful tool which has the ability to deliver precise insights into your business’ performance, industry trends and present unknown pressure points.
In order to build the workforce you desire, it’s important your business records and tracks all data associated with your hiring process. If you are not using data to inform and shape your process, chances are you may be lagging behind. However, start tracking these metrics to see how efficient your process is.
Time to fill
This metric refers to the amount of time it takes to fill a position opening. This covers the entire the time from the day the position becomes available, to the time your new employee signs on the dotted line.
This is a critical metric to track, as the longer a position is open, the greater the cost to your business. Not only is a lengthy recruitment process wasting your time and money, it is also putting you at risk of missing out on a top candidate.
It’s important you regularly analyse this metric to see where you can make improvements. Consider, analysing it after each hire and also annually, to get a complete picture of your process.
Employees referrals are generally the cheapest, fastest and most efficient means of filling an opening. In many cases, current employees referring their personal contacts for job openings indicates that the candidate is likely to be a good fit for the job.
Additionally, as social media continues to form a greater part of our daily lives, it also offers a great tool for recruiters to generate referrals like never before.
So why wouldn’t you track this as well? However informal the referral, make sure this metric is also factored into your data collection.
Cost per hire
How much are you spending on each hire? It’s no secret that the entire recruitment process can be a very costly process. Particularly if your ‘time to fill’ is lengthy.
This metric includes everything from, recruiter fees, advertising, training and even turnover. By tracking and understanding this metric, you’ll be able to improve your spending on future hires.
Clearly, the cost per hire will differ depending on the position. For example, the cost of hiring a receptionist or a junior account manager may be relatively minor compared to hiring a new CEO or director.
Source per hire
At present, do you keep a record of where your successful hires are coming from? How do they find your opening, do they find it on job board websites, social media platforms, recruiters or referrals?
Understanding how a candidate entered your recruitment process is important for developing and improving your recruitment strategy. Having a good understanding of this metric will help you to distribute your resources better and help with finding your next hire.
Potentially, the most important metric that you need to be tracking is your turnover rate. This refers to the frequency at which your staff are leaving the company, either voluntary or involuntary.
This metric can give you a good understanding of several different factors. Particularly, your return on investment, the point at which employees leave and why they are leaving.
Turnover rate will give you a good picture of every aspect of the business. It will also help you get a good understanding of several key organisation factors, such as the company’ direction, your leadership style, workload and progression planning.
Ultimately, this can be used to improve your business’ ability to identify areas which cause key staff to leave, ideally allowing you to address them. On top of that, turnover rate will provide a clear understanding of your return on investment into your recruitment process and staff.
The five metrics discussed above, are key data sets that every business, big or small, should be using. Using all five in conjunction will give hiring managers a holistic understanding of their hiring process and which aspects can be improved to benefit not only the business but also your employees.