Efficient recruitment is a complex step-by-step hiring process that must be constantly monitored and improved. The recruitment process can look quite different across different industries and companies based on their business nature, organizational structure, selection of candidates, etc. But any company should track its recruitment metrics that are crucial for leaders and managers to arrange the well-planned recruitment process and select the right candidates.
Key performance indicators on the recruitment process
1. Recruitment Funnel
The recruitment process can be described based on the scheme of the funnel. It involves number of all potential candidates passing from the first step of the recruitment process till the hiring. The levels and rations we would like to assess depends on the model of conducting the recruitments. Information that can be gained throughout the entire funnel are important to estimate the quality and identify improvements of the process.
It is good to have data on a candidate quality i.e. a ratio of candidates accepted by HR staff to all job applications. Next, we can indicate how many candidates went through HR interviews and were invited to technical meetings or finally how many candidates received the job offer. If for instance, only 20% of candidates recommended by HR department is positively assessed by technical teams – it may indicate the misunderstanding of the role or miscommunication between these two parties.
At this point, it is good to mention about an offer acceptance rate i.e. an indicator showing what percent of candidates that went through HR interviews and technical interviews, were invited to cooperate, but they did not undertake it.
2. Time to hire
Time to hire may be easily calculated, it is the time between candidates enter a recruitment process to when you extend them an offer. Time to hire is important, because it measures the effectiveness of your hiring process including applications, screenings, and HR interviews, technical interviews.
Information on time to hire can show many issues in your recruitment process. For example, you may recognize that your recruitment process takes long months. At this point, it is crucial to estimate how much time screening and interviewing can take. What is more, you may look at hiring managers, their availability to conduct interviews and maybe suggest some changes that can speed up the process.
3. Recruitment Team Employment Process
Recruiters efficiency is an decisive indicator, especially in larger organizations where a recruitment department consists of several recruiters and supporting positions. Information on how many recruitments are planned, how many hires are scheduled in the coming months, what HR activities should also be covered, may help to organize work of the recruitment teams and make a decision of expanding, changing roles or delegating to other functions.
4. Recruitment Source Analysis
A source analysis shows how many applications come from a given source. It is worth measuring it, for instance, depending on costs of sources or quality of applications. In this case, a lot depends on industries and business activities of the company. If you want to increase your hiring efficiency, you may start by optimizing source and assessing where you can get the best candidates for your company. Data on sources can help you to select job posting sites or decide to extend recruitment accounts on LinkedIn. It is an important factor in preparing budget plan for recruitment activities.
To sum up…
There is a number metrics that may be monitored in your recruitment process. To wrap it up, it can be said that the hiring process is data-driven. If you want to start tracking hiring metrics, choose indicators that you can measure consistently and maybe even influence them.
Junior Recruitment Specialist