If you want your recruiting metrics to be a strategic tool to develop into a competitive edge, you need to use forward-looking metrics or predictive analytics tied to specific business impacts.
Turn your recruiting metrics into a strategic tool by providing dollar and goal impacts, Recruiting Metrics calculating risks, and using real-time recruitment metrics that report what is going on right now.
Truly useful recruiting metrics are ones that define what recruiting decisions must be made and when, calculate the cost of doing nothing, and recommend action plans and next steps. For example, put together a plan to source new college graduates that entails sending a recruiter to on-campus recruiting events or meeting them online in Google Hangouts with referrals from college professors. Next, document the associated costs and possible outcomes for each. Or perhaps report on a competitor adding to their workforce and what it would mean for your company in dollars and productivity if they recruited some of your top performers and you did nothing.
Recruiting Metrics that Report Dollar and Goal Impacts
Effective strategic recruiting metrics report dollar and goal impacts tied to business strategies. Reporting on the productivity of the workforce measured with data from performance appraisals and productivity statistics highlights deficiencies or efficiencies in hiring. It also shows opportunities for training, advancement and employee development. Calculate the dollar impact of losing key employees through missed customer and industry opportunities and percentage of revenue generated by the position. If a key corporate goal is to increase sales by 15 percent this year, use current sales staff sales figures to calculate how many new salespeople are needed to drive the desired sales increase.
Recruiting Metrics that Calculate Risks
Use recruiting metrics that calculate risks to use in recruitment planning. For example, if key employee turnover is becoming a problem, calculate the costs of an increase in this area and compare it to the costs of good hiring practices. Use metrics to show how weak hiring efforts, poor or no employee development or lack of leaders threatens specific areas of the business such as revenues and growth. Calculate the risks of not performing on-campus recruiting for interns and college graduates to show a return on investment for budgeted recruiting dollars that may be targeted for cuts.
Real-Time Recruiting Metrics
The problem with traditional key recruitment metrics is that they are based on historical data rather than current or real-time information. Today’s workforce productivity, based on recent performance evaluations and productivity statistics, points to areas to focus recruiting efforts on, such as skills testing for line worker applicants if the current information shows a lack of mathematical ability. The current week’s turnover, if zero, may indicate relaxing internal and online job postings; or, if five employees walked out at once, turnover is critical and requires an emergency response. Recent engagement scores that indicate a high level of frustration and dissatisfaction can give managers and recruiters a heads up that they may soon have a reduction in force to deal with, either through voluntary or involuntary vacancies. Current information from authoritative sources about the availability of top talent in the market allows hiring managers and decision-makers to take advantage of
opportunities or plan for labor shortages.
If you’re relying on cost-per-hire, time-to-hire and quality of hire recruitment metrics, you’re looking backward instead of forward and using historical information to gauge and guide your recruiting. Use traditional key recruiting metrics such as cost-per-hire, time-to-hire and quality of hire as your baseline to know your recruiting history and to benchmark key events such as loss of a big customer requiring a reduction in force or staffing a new division. But if you develop strategic recruiting metrics, you can gain real control over effective recruiting activities that support successful outcomes.
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.