Recruitment analytics are playing an increasingly important role for recruiters and HR managers. With the help of recruitment analytics, you can make better, data-driven choices when it comes to sourcing, selecting and hiring. In the 6-part series, we explain to you everything there is to learn about recruitment analytics. In part 2 we look at the 6 best Recruitment Metrics to optimise your recruitment process.
What are recruitment metrics?
Before you can start with recruitment analytics, you have to know what kind of data is important. So what exactly do you need to measure? In short, recruitment KPIs are business indicators that support HR professionals and managers to optimise the recruitment process, improve performance and increase productivity using data.
Important recruiting KPIs
Depending on your objectives, there are many recruitment KPIs you can track. The KPIs you choose are based on your company’s recruitment and growth objectives, these are best to start with.
1. Time to Hire
When you have found a good candidate for a job, does he or she go through the recruitment process quickly? The Time to Hire gives you an overview. Time to hire is the time it takes to shortlist, interview and hire a new employee from the moment they apply. It covers the whole process.
Why is it important?
It indicates the effectiveness of your recruitment process. Knowing how much time you need to hire a new employee will help you forecast and shape your entire recruitment strategy. It can also help you identify bottlenecks in your recruitment process.
2. Source of Hire
Applicants use a variety of digital channels in their search for work (at your company). Therefore it makes sense that the smartest recruiters use multiple channels, whether it’s LinkedIn, ads or social networks. With source of hire, you know which of these channels is the most effective.
Why is it important?
Knowing where your best candidates are coming from is paramount to continuing to improve your recruitment strategy. It also makes it easier to make good decisions about what and how to spend your recruitment budget.
3. Quality of Hire
This recruitment metric measures whether the person appointed to fill the position is suitable or unsuitable for your organisation. It is typically used to measure the performance of a hire over a one-year period. A low rating can indicate poor recruitment, which can cost companies a lot of money.
Why is it important?
Knowing how your employees help your organisation and the skills they bring to their work is fundamental.
4. Cost per Hire
The cost per hire is central to calculating and managing the recruitment budget. The formula:
Total internal recruitment costs + External recruitment costs / Total number of hires
Why is it important?
Understanding how much money is spent during the recruitment process can be a very efficient way of allocating spending. This is why it is important to look at all the costs involved in hiring an employee to see where you can cut costs during the recruitment process.
5. Candidate experience
The term “candidate experience” represents the experience of a candidate during the recruitment process. According to one (short) definition candidate experience is the overall impression a candidate has of the company’s recruitment process.
Why is it important?
Pleasant job interviews at a company can leave a lasting impression. A satisfied candidate will be more likely to accept an offer. Moreover, it can encourage them to apply for another open position if they do not receive an offer. It is also important to know which aspects or steps of your process need to be improved.
6. Time-to-full productivity
It measures how long it takes before new people are fully employable. This can be done, for example, by using internal progress systems, but also by regularly asking questions of the hiring manager.
Why is it important?
It provides insight into the effectiveness of the entire recruitment process, up to and including the training and onboarding of new employees.
Series
In the 6-part series we’ll take you step-by-step through everything there is to learn about recruitment analytics. This was part 2.
In part 3 we will discuss: How to create a strong recruitment analytics dashboard.
