As employers continue to face falling candidate availability and rising demand for staff, understanding your recruitment metrics is vital to attract, source and retain the talent your business needs. Metrics are used to measure and monitor the progress and success of your talent acquisition strategy. Here are 7 you need to know:
Time to hire
For companies new to recruitment metrics, measuring time to hire should be your priority. On average, it takes employers four weeks to fill an open job but talent disappears from the job market within a matter of days. A prolonged time to hire indicates a number of issues including a repetitive application process or poor decision making on final candidate selection. Reduce your time to hire by tagging your referred or priority candidates through your applicant tracking software and offering a registration of interest to capture the contact details of qualified candidates.
Source of hire
Understanding the source of your most successful hires enables HR to focus on those channels to fill future jobs. Candidates enter your recruitment funnel from a variety of sources including your careers website, employee referrals, social media, your own talent pool and job boards. Focus on the sources that provide the most qualified candidates for a better response to your next vacancy. Ideally, employee referrals should provide your top source of quality hires.
An estimated 90% of candidate drop-offs are a direct result of a poor time to hire. If your HR analytics reveal alarming levels of candidates abandoning your hiring process pay attention to that metric. A prolonged application process and failure to engage with applicants in your pipeline and a negative candidate experience all affect this vital metric.
Quality of hire
Under a quarter of UK employers are confident in measuring their quality of hire. The easiest way to gain insight into your quality of hire is by measuring your attrition rates among your most recent recruits. Incorporating pre-hire assessments, reviewing your screening parameters and carrying out exit interviews with your departing employees will enable HR to gain clarity around this issue. With an estimated two out of every five hires now failing, understanding your quality of hire is essential.
The problem of retaining new hires is shaping up to be one of the major recruitment trends for 2017. A new report from CV Library found that one in five new hires leaves either during or before the end of their probationary period. If your recruitment data shows a disproportionate level of early departures focus on your interviews first. Unrealistic expectations result in your candidate leaving early but the problem may also lie in your decision making. 75% of decisions are based on the interview alone, leaving your process at risk of unconscious bias and bad hires. Support your decision with the evidence in your recruitment analytics.
Cost of hire
A recent report from the Recruitment and Employment Confederation (REC) found that 85% of hiring managers admit to making a bad hiring decision but one third believe there are no costs relating to this decision. One in five also have no idea how much a bad hire costs their business. The report suggests that, an unsuccessful hire in a position with a salary of £42,000, for example, costs your business over £132,000. Your cost of hire will include job adverts, internal hiring costs, interviews and agency fees. The final cost should also be measured in terms of both the financial impact and the impact on the morale and performance of your existing employees.
Job acceptance ratio/Reneged job offers
Job hoarding candidates became a very real problem for UK employers last year, particularly for graduate recruiters where the number of reneged job offers meant that 1,000 graduate jobs went unfilled. A poor job offer to acceptance ratio will be affected by a number of issues, including an irresistible counter offer, a poor candidate experience, a salary which doesn’t reflect market rates or delays in making a decision on candidate selection. Reneged job offers also suggest a potential problem with onboarding. Your onboarding process should begin as soon as your job offer is accepted to prevent your new employees going AWOL on their first day.
Advorto’s recruitment software provides workflow and structure across the entire hiring process and offering a dynamic database of candidates and analytics. Used by some of the world’s leading organisations, it provides a straightforward first step into people analytics and big data. Contact us today.