How do you know your recruitment strategy is suffering? Maybe you have posts on job boards that don’t see much traffic or any qualified candidates. Maybe your company has seen a lot of turnovers and you’ve been conducting a lot of exit interviews. Maybe productivity is down and your leadership team is trying to understand why there are so little morale and engagement. Regardless of what the problem is, if you want to improve your recruitment strategy, you need the data to tell you what’s not working so you can make decisions about what changes need to happen. HR analytics help businesses better track the trouble spots in processes and give businesses more information from which to make educated decisions instead of just guessing and hoping.
List of HR recruiting metrics to improve HR efficiency
If you’re an HR professional who’s looking for how to measure your recruitment effectiveness, here are some of the top recruiting metrics to measure.
1. Time to fill
This metric measures how long it takes to get a qualified candidate working in the position from the time of posting the job to the new employee’s acceptance of a job offer. A very long time to fill can indicate inefficiency somewhere in the recruitment process. It’s a helpful metric to help HR employees understand how much time may need to be dedicated to hiring the new candidate for a new role.
2. Time to hire
How long does it take for a candidate to go through the hiring process? Time to hire measures the time it takes for a new employee to start with a company, beginning at the time of their application. This is another good place to spot inefficiencies in the hiring process.
3. Source of hire
This a good metric to check regularly. Where are most of your hires coming from? Which platform or method of recruitment is delivering you the most or best candidate leads? Checking this metric can help you better understand what channels might be a waste of your time and money.
4. Quality of hire
You can determine the quality of your hire by taking the number of hired candidates who are considered satisfactory and dividing that number by the total numbers of candidates hired. If the percentage is high, you have a good success rate in sourcing quality candidates.
5. Applicants per opening:
How many people are applying to your job posts? Are you spending a lot of time screening applicants? If your job post draws in a higher number than average applicants, that may indicate that the job ad isn’t specific enough or that there are fluctuations in the job market or industry.
6. Cost per hire:
This is the total cost invested by a company to source a new hire and considers costs like advertising costs, agency costs, onboarding time, new hire training costs, and other expenses. Keeping these costs as low as possible is associated with a more efficient HR department.
7. Offer acceptance ratio
Are you offering people jobs and regularly hearing “No, thanks” from your desired or chosen candidates? This can indicate several things, including a too-long hiring process or not being competitive enough in salary or work culture.
Not only is the equal opportunity the law, but higher diversity rates are also linked to better creativity and innovation, so a more diverse workforce is a benefit for your business. Review your diversity regularly, and make sure you’re considering qualified candidates from every background.
These top recruiting metrics can help you understand how efficient and effective your HR recruiting efforts are and help you find more successful ways to source the top talent for your organization.