Recruitment, like any other critical business indicator, needs to be strategically planned and executed – and accurately monitored for success. To make effective, data-driven hiring decisions, you need to know which metrics to track in order to deliver desired results including productivity, profitability, diversity, and an ongoing positive ROI.
So, which staffing metrics matter the most?
While specific needs may vary from case to case and business to business, here are some common metrics that consistently prove helpful in optimizing your hiring outcomes:
Time to Fill
This is the total amount of time it takes to source and hire a new employee. By shortening time to fill, you can also improve performance on other metrics including cost, increase your hiring managers’ productivity, and gain insight into the success of your overall candidate experience.
Time to Hire
Similar to time to fill, this metric is narrower in scope, as it measures the time it takes to move a candidate through the various stages of your hiring process. It also helps gauge your recruiting team’s efficiency in identifying and sealing the deal with qualified talent.
Source of Hire
Using this metric, you can track which channels and sources are driving the best ROI in attracting job seekers to your open roles. For example, it may be your careers page, job boards, social media platforms, or employee and other stakeholder referrals. Data from your applicant tracking system (ATS) can help – so you direct more resources toward your most valuable sources.
Offer Acceptance Rate
How many candidates accept your job offers, compared to the number who receive them? A low acceptance rate can help you zero in on issues that may not have been clarified otherwise, such as uncompetitive salary or benefits. This metric is a good general indicator of how well you have “sold” a candidate on your opportunity.
Attrition Rate
This is the rate at which your company loses employees during any given time period. A similar metric is first-year attrition rate. Replacing top talent can be costly, so it’s important to keep a pulse on how to keep this rate as low as possible.
Applicants Per Role
With this metric, you can determine the demand for and interest in your open roles based on such data as number of applicants per role, location, or hire. You may also want to track how many candidates abandon your application process or elect not to apply after reaching a certain stage of consideration.
Cost Per Hire
This is the total amount you spend on recruitment annually, divided by the total number of hires made. To best way to leverage cost per hire is to analyze how much it costs you to recruit for each individual role, as well as where you are allocating funds both internally and externally.
Each position you fill is another building block in your company’s recruitment and competitive success. To learn more about developing the strategy and specific metrics to meet your unique needs, contact the PrideStaff Fresno team today.
