Tracking, analyzing, and acting on data is what separates the successful from the stagnant in recruiting. As a Talent Acquisition leader, you need to know what recruiting metrics to track and how to make sure your team is growing appropriately.
Peter Drucker said it best, “What gets measured gets improved.”
What are metrics and why do we use them?
Recruiting metrics or KPIs are “measurements used to track hiring success and optimize the process of hiring candidates for an organization.” (Source) Literally, KPI means Key Performance Indicator. What metrics a team tracks are often personal to that team. Although there are some metrics that are fairly universal which we’ll get into in the next section.
Metrics keep objectives and goals at the forefront of decision making. By having data about productivity and successes, goal creation is easier and recruiters are able to prioritize their tasks.
When you are making the decision about what metrics you use, remember to consider how much of an effect your recruiters can have. Judging your team by Time to Hire can be helpful, but it can pose a problem if the hiring manager refuses to make a timely decision.
What are some common metrics?
There are a few metrics that are pretty common across teams:
Time to Fill/Hire/Offer: One of the most common metrics measures the time it takes to fill a position. Some teams measure the time between first approach to offer letter. Other teams measure the time between the first approach to the first day on the job. Regardless of your team’s preference, measuring the timeline of the process is really common.
Applicants/Candidates per Hire: This metric looks at how many applicants/candidates were vetted before a hire was made. This metric can give teams a good idea of the strength of their job postings/descriptions. It can also provide data on the health of the market in general.
Cost per Hire: This metric is exactly what it says in the name…how much did it cost to get that hire made? This number looks at how much time the recruiter spent, time spent by managers, candidate expenses, and more.
There’s absolutely nothing wrong with utilizing these common metrics if they’re what’s best for your team. What we want to suggest is the importance of utilizing the right KPIs, rather than just what is common.
What should your team be measuring?
There are some metrics that could be a great addition if you’re looking for numbers that your recruiters can have more control over.
Qualified candidates per position/post: Rather than focusing on the hire as the end goal, this metric allows you to understand the health of your team’s data. Measuring this shows you if your team is constantly facing piles of unqualified applicants to a posting. If they are, it’s time to change up your posts!
Time to slate: This number measures how long it takes a recruiter to present a shortlist to the hiring manager. This metric is in complete control of your recruiter, unlike Time to Fill/Hire which involves the input of hiring managers.
Diversity rate of the pipeline: Numerous teams out there are upping their focus on hiring diversely. If you want to do the same, you need to be measuring how diverse the pipeline is. HiringSolved even has a specific tool to give you that exact data.
Hiring Manager acceptance rate: This measures how many candidates are accepted when sent to a Hiring Manager. The higher the number, the better the rate!
Source of hire: Source of hire helps the team see the ROI from the different tools they use. This can help make renewal decisions easier in the future.
Want to know about more recruiting metrics? Check out this extensive Wikipedia page.
Find What’s Best for Your Team
Ultimately, teams should be taking a proactive approach to the metrics they measure. Include your recruiters in the conversation by asking them what success metrics they use personally. If everyone is going to be judged by these metrics, it’s important to have an open conversation about them.
Let us know…what metrics do you and your team value? We’re listening over on Twitter!