“Metrics are for doing, not for staring. Never measure just because you can. Measure to learn. Measure to fix.”
While it will be a very tedious and time-consuming job to analyze and review every kind of metric that is available, ensure that the following important ones are a part of your list:
1. Hiring time
2. Your sourcing channels
The next important metrics that you need to track are the sources that your candidates are coming from. You may be having multiple sources from where you source/ select candidates, such as newspapers ads or online job portals, social media, professional sites like LinkedIn or by direct contact with candidates.
For every vacancy that needs to be filled, keep in mind -
● The number of applicants that applied for the post from each source
● The number of applicants who qualified for the job interview from each source
● The number of shortlisted candidates from each source
● The source where the hired candidate first came to know about the vacancy
Keeping a tab of these metrics will save both your time and money in the long run. If any of these channels seems to be ineffective, you can stop sourcing from that channel.
3. Total cost incurred in hiring
The total cost for every hire is another important metric that should be considered. You must have a clear idea about the total expenditure of the company for every new recruit. This includes monetary expenditures like advertising costs, agency fees, costs in internal recruiting, assessment tools, travelling cost, etc. Apart from that, factors such as the time taken for setting up your social media profiles (LinkedIn, Facebook) and time taken by the interviewers to interview each candidate, also come under the total cost.
Once you start making changes in your hiring process, this cost metric can be used to evaluate the efficiency and generate greater ROI.
Strange as it may sound, but the cost of losing an efficient employee can be 3-4 times higher than their salary.
When you start keeping a track of all the costs that go into hiring a person, you must keep a track of the retention rates too. Remember that if your company has a lower retention rate, you are actually losing out on a lot of resources. It’s not only about the cost that goes into recruiting a new candidate, but also the loss of time and productivity that goes into resigning, re-hiring and the training process.
Keep a track of the turnover rate of every role in the organization. Compare it across all departments to see how your company is faring. This metric must be calculated once in every 4-6 months, so that you can keep a track of the trend.
“Start the retention process when the person is still open to staying and not after they’ve already told you they’re leaving.”
5. Offer-Acceptance Rate
Offer acceptance rate, meaning the number of offers made to candidates that are actually accepted, is an important metric in terms of talent acquisition. The entire recruiting process costs you a considerate amount of time, effort and money. So, if candidates turn down your offer, you actually suffer a great deal of loss.
Start tracking the offer-acceptance rate over the months. This way, you as a recruiter, can analyse the attractiveness and competitiveness of your offers in the job market and if required, you can also tweak it accordingly.
6. Quality of every hire
Your job of tracking the hiring metrics should not come to an end once recruitment is over. Keep a track of the quality of every fresh hire, especially in the first year. It could be the attendance record, turnover rates, feedback from managers or productivity of the candidate.
With this assessment, you will be able to understand the quality and potential of every new candidate, identify their strengths, make better promotional decisions and determine if they are the best fit for your company.
Measuring and tracking your recruitment process is a great way to analyse your ROI and at the same time incorporate the necessary improvements for your business benefit. Register on interviewfox.com today and enhance the quality of your hire by choosing the best from a wide pool of talent.