Recruiting costs money and any time you spend money, you want to make sure you can justify the expense. Recruiting metrics help communicate the value of recruiting to the organization as well as highlight areas that may need more funding or different efforts.
Recruiting metrics measure the effectiveness (or ineffectiveness) of your recruiting process. They create benchmarks, develop accountability, prompt improvement efforts, and highlight areas of recruiting that are working well.
Time-to-hire and cost-of-hire recruiting metrics are essential measurements to keep control and manage recruiting activities, but recruiting metrics that really work are metrics that help you fine-tune your recruiting process and turn it into a competitive advantage.
Recruiting metrics such as number of applicants, candidate sources, recent engagement scores, metrics that calculate risks, and predictive recruiting metrics really work to drive recruiting as a strategic tool instead of a reactive activity.
Number of applicants
Paying attention to the number of applicants you get per recruiting campaign gives you a way to gauge if you’re using the most effective employment advertising, how it affects your time-to-hire, and how you are using your recruiting resources such as budget and staff to process recruiting tasks such as resume screening.
A large number of applicants for a job opening isn’t necessarily the best result for every company’s hiring needs. The more applicants, the more time it will take to review resumes, select candidates for interviews, and maintain incoming applicant paperwork. Too few applicants may indicate a talent shortage or the need to review your job posting avenues.
Track where your best hires come from, such as particular search engines, an employee referral program, or intern programs. Then you can drop unproductive sources and focus your recruiting efforts where you get the most qualified candidates.
Recent Engagement Scores
Recent engagement scores are a key metric to use to prepare for possible upcoming changes in the workforce that will require a recruiting response. High levels of frustration indicated in employee engagement surveys may point to impending vacancies from employees walking out or being let go, or the need to add to the workforce to address a severe shortage.
Recruiting Metrics That Calculate Risks
Recruiting metrics that calculate risks enable recruiters and hiring managers to be proactive instead of reactive. Use industry standards to compare to your company’s recruiting performance, and calculate the risks of not being aligned with them. Risks of not acting to reduce turnover, weak hiring efforts, or cutting recruiting budgets for on-campus recruiting and how they would impact business performance help make the business case for improving your recruiting process.
Using predictive metrics such as forecasted unemployment rates, impending competitor competitors’ hiring or layoffs, and forecasted labor costs enables recruiters and hiring managers to prepare for possible hiring problems and opportunities. Predictive recruiting metrics keep recruiters’ eyes ahead instead of looking back with traditional metrics like year-to-date hires and terminations.
Employers who want to use talent acquisition as a strategic tool or who recognize the need to improve their recruiting processes must use recruiting metrics that work. Instead of recording hiring and turnover history, recruiting metrics that work provide a steering wheel to drive a more effective talent acquisition program.
Andrew Greenberg’s roots in recruiting date back to 1996. He has experience both on the agency-side and corporate-side of the staffing business, with a focus in the financial services space at companies like Bloomberg and UBS. He also has core experience with information technology staffing, and has worked for major software companies such as SAP Business Objects and IBM/Informix Software. To get in touch with Andrew, you can reach him by email or by phone at (800) 797-6160.