Recruitment metrics are indicators of the effectiveness of the selection process applied in the company. To help, let's introduce 12 of these metrics. Among the main ones:
- Time to hire;
- Contracting cost;
- Turnover of recent hires;
- Processes completed on time;
- Hiring funnel;
- Reasons for closing after the deadline;
- Qualified candidates per vacancy;
- Duration of vacancy offer;
- Candidate acceptance index;
- Hiring x impact on goals
- Investment in admission;
- Return on investment in training.
The HR sector has multiple responsibilities these days. But, it is indisputable that the recruitment and selection process remains one of the most important activities of the department.
The key point for evaluating the team's effectiveness is: what are the main ones recruitment metrics that you monitor in your company?
After all, through them it is possible to identify what has worked and what may be generating high costs for the company — such as the high cost of turnover.
And that's why, throughout this post, we'll highlight the importance of tracking these indicators and highlight 12 recruitment metrics that can make all the difference in measuring the success rate of the entire recruitment and selection process of the company!
The Importance of Recruitment Metrics
To reach the desired level of excellence — whether to develop it or to maintain it — it is essential to have indicators under monitoring.
In the case of recruitment metrics, the company gets a powerful tool to track the effectiveness of this process.
For example: if the layoffs occur at an accelerated frequency, something is not in line with what the company is looking for. Of course, the reasons for layoffs—voluntary or otherwise—are varied, but discovering those reasons qualifies the HR team.
Because it is from the identification of a cause that solutions are established. In addition, it is worth noting that current technological solutions, such as versatile HR management software, make it easier to assess indices.
As a result, the company is under constant monitoring, updated in real time, to ensure that the results remain even better.
So that your company's HR routine is enhanced with the indexes that help guide corporate strategies, let's look at the 12 recruitment metrics that we've separated for you to assess their relevance in the context of your day-to-day?
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The 12 Recruiting Metrics to Track
Below, we've highlighted general recruiting metrics, those that may have everything to do with your company's momentum, and others that are worth considering in the future. Are they:
1. Time to hire
The entire recruitment and selection process requires an investment in time and resources so that it can be carried out and carried out.
Thus, it is important to know an average of the period that will require a selection process in the company. If it's too fast, this can be one of the reasons for the low effectiveness of the contracts made.
If it takes, in turn, a lot of time and resources are being directed to the activity. In the end, it may be costing the company too much, with few results.
A good calculation to identify the average time to hire is the following: time it takes the company to fill a vacancy / number of vacancies.
If the result seems too high — it's always worth evaluating the average practiced in the market to make sure of that — it's time to review the concepts applied internally.
2. Hiring cost
Among the most relevant recruitment metrics, the cost of hiring must be considered, without a doubt, in your company.
And do you know why? Through this indicator, the HR sector knows how much it invests in the activity in general costs. For example:
Among other investments used to minimize selection time and the work of screening candidates, interviews and the other steps of the selection process.
As in all corporate areas, the ideal is that this average cost is potentially reduced, over time, without losing effectiveness in the precision of the selection of candidates.
3. Turnover of recent hires
Employee turnover in a company says a lot about its health, the level of satisfaction of its professionals and the power to retain talent internally.
After all, when more people leave than stay in the company, something is wrong. And this could be caused by some flaw in the recruiting process.
It's not the only factor, it's true. But when the organizational culture of the company is concerned with the quality of life of its professionals, invests in a career plan and has very well mapped the needs to fill each vacancy, the turnover decreases.
And it is worth noting how much the high turnover rate costs companies. With the labor charges alone, the investment in admissions and the training and integration of new hires are enough to consider monitoring this, among other recruitment metrics.
4. Processes completed on time
As a complement to the first of the recruiting metrics we've highlighted, it's a good idea to keep track of what Law Suit were completed on time.
And the reason for this is easily explained: if there is a mapping of the selection process and an average time for its realization, when it is not fulfilled, problems arise.
Among them, the waste of time, money and human resources. However, this delay can often be related to the difficulty in finding qualified professionals to fill open opportunities.
In these cases, we recommend that the company's HR know, in advance, other solutions to qualify the recruitment.
The timely hiring of a headhunter, for example, can streamline the process step and be more economical than delaying the completion of the selection process.
5. Hiring Funnel
Another key recruiting metric. Here, after all, the whole idea of mapping the company's selection process is concentrated. In general, it follows the following order:
- selection of candidates;
- qualified candidates;
- finalists for decision making;
- hiring preferred candidates.
Each step can have substeps for its realization. But by knowing in advance what they are, and how to proceed, HR professionals prepare more easily.
6. Reasons for late closing
Similar to the fourth recruitment metric presented here, this indicator aims to highlight not the number of processes on time, but the reasons why the procedure was not completed on time.
This helps identify the production bottlenecks that have kept HR from working properly. It therefore serves as a complement to the numbers evaluated in other recruitment metrics.
To do so, we recommend that your employees use this metric as a report, outlining the reasons for the problem to happen, the details of the opportunity and the actions taken to remedy the problem from happening again.
7. Qualified candidates per vacancy
Simple sign to follow, which must be noted at the end of the first stage of selection of candidates for an opportunity in the company.
By monitoring this data, your team already knows, in advance, which vacancies require the most attention in the selection of candidates. Sometimes, leadership positions they can bring fewer applicants to the vacancy, which makes it difficult to carry out.
It is a possibility to foresee the problems in order to have the best solutions already mapped out before they present themselves during the recruitment process.
8. Duration of vacancy offer
Every opportunity opened in the company must have a defined deadline. This avoids higher costs with the platform where the vacancy was published, for example, and with the time invested by HR professionals, among other expenses.
It also creates a sense of priority so that the opportunity is very well evaluated and delivered on time. An important metric that must be considered within the particularities of each vacancy in the company.
9. Candidate acceptance index
This is also one of the recruiting metrics that you should pay close attention to.
After all, it is about the number of candidates who accepted the conditions of the job offer and the volume of candidates who saw or received the opportunity.
This says a lot for HR professionals, because if adherence was considered low, something could be wrong in the creation of the opportunity.
It can be, for example, the benefits, the salaries practiced and even the reputation of the company — let's say that there is a high internal turnover due to poor organizational management. Over time, fewer people apply to that company's opportunities.
10. Hiring x impact on goals
Did the planned hiring have the expected effect or did more people have to be hired until the replacement took effect?
As a result, this type of recruitment metric helps to identify whether the desired profile, competencies and skills and behavior of selected candidates are, in fact, put to the test — which can show poor work on the part of recruiters.
11. Investment in admission
This is an important indicator, which allows the assessment of the total invested in admissions compared to the amount associated with the payments and benefits of contracted professionals.
Thus, it is possible to assess how much is spent on the company's selection process, and how attractive this amount is based on all the charges necessary to keep newly hired employees.
12. Return on investment in training
Finally, to finalize our list of recruiting metrics, we selected the return on investment in training.
And do you know how important this is for new hires? Because these are costs related to admissions, and if a professional goes through this entire process and resigns within a month, the ROI (return on investment) was very low.
It is, therefore, important to evaluate this data to ensure that the company's financial health remains stable within acceptable inflows and outflows throughout the year.
And so, you can now understand the relevance of monitoring the metrics of recruitment and how can the main ones be associated with your company's routine?
Do you want to further qualify your team and highlight the relevance of these indicators? Then, share this post on your social networks and take the opportunity to mark employees who will make good use of the tips we have selected here!
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