The recruitment metrics are indicators of the effectiveness of the selection process applied in the company. To help, let's present 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 late closing;
- Qualified candidates per vacancy;
- Duration of the vacancy offer;
- Candidate acceptance index;
- Hiring vs. Impact on Goals
- Investment in admission;
- Return on investment in training.
The HR sector has multiple responsibilities today. But, the recruitment and selection process is undeniable remains one of the department's most important activities.
The key point for assessing the team's effectiveness is: what are the main recruitment metrics do 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 with turnover<span style=”font-weight: 400;”>.
And that is why, throughout this post, we will highlight the importance of monitoring 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
In order to achieve the desired level of excellence – either to develop it or to maintain it – it is essential to have indicators under monitoring.
In the case of recruitment metrics, the company obtains a powerful tool to monitor the effectiveness of this process.
For example: if the layoffs occur at an accelerated frequency, something is not in accordance with what the company seeks. Of course, the reasons for dismissals – voluntary or not – are varied, but discovering these reasons qualifies the HR team.
For it is from the identification of a cause that solutions are established. In addition, it is worth noting that current technological solutions, such as a versatile HR management software, allow the assessment of indices more easily.
As a result, the company is under constant monitoring, updated in real time, to ensure that the results remain better and better.
So that the HR routine in your company is enhanced with the indexes that help guide corporate strategies, let's see then the 12 recruitment metrics that we have separated for you to assess their relevance in the context of your day to day?
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The 12 recruitment metrics to track
Below, we highlight general recruitment metrics, those that may have everything to do with the moment of your company, and others that are worth considering in the future. Are they:
1. Time to hire
Every recruitment and selection process requires an investment in time and resources for it to 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 is too fast, this may be one of the reasons for the low effectiveness of the contracts made.
If it takes too much time and resources, it is being directed to the activity. In the end, it may be costing the company too much, with little results.
A good calculation to identify the average time to hire is the following: time that the company takes to fill a vacancy / number of vacancies.
If the result seems too high – it is always advisable to evaluate the average practiced in the market to make sure of this – it is time to review the concepts applied internally.
2. Cost of hiring
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 candidate selection time and filtering work, interviews and the other stages 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 accuracy of the choice of candidates.
3. Turnover of recent hires
The turnover of employees in a company says a lot about its health, the level of satisfaction of its professionals and the power of retaining talents internally.
After all, when people leave more than stay in the company, something is wrong. And this may be caused by some failure in the recruitment process.
It is not the only factor, it is true. But when organizational culture style=”font-weight: 400;”> of the company is concerned with the quality of life of its professionals, invests in a career plan and has the needs for filling each vacancy very well mapped, the turnover decreases.
And it is noteworthy how much the high rate of turnover costs companies. Only with labor charges, investment in admissions and training and integration of newly hired employees are already sufficient to consider the monitoring of this, among other recruitment metrics.
4. Processes completed on time
As a complement to the first of the recruitment metrics we have highlighted, it is a good idea to also monitor 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 the open opportunities.
In such cases we recommend that the company's HR know, in advance, other solutions to qualify the recruitment.
The punctual hiring of a headhunter, for example, can speed up the process step and be more economical than the delay in completing the selection process.
5. Hiring funnel
Another one of the main recruitment metrics. 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 the preferred candidates.
Each stage can have substeps for its accomplishment. But, by knowing in advance what they are, and how to proceed, HR professionals prepare themselves 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 to identify the productive bottlenecks that have prevented HR from working properly. It therefore serves as a complement to the numbers evaluated in other recruitment metrics.
Therefore, we recommend that your employees use this metric as a report, explaining the reasons why the problem happens, the details of the opportunity and the actions taken to remedy the problem of happening again.
7. Qualified candidates per vacancy
Simple indicator to follow, which should be noted at the end of the first stage of selecting candidates for an opportunity in the company.
By monitoring this data, your team already knows, in advance, which are the places that most require attention in the selection of candidates. Sometimes, leadership positions they can bring less plaintiffs to the vacancy, which makes its accomplishment more difficult.
It is a possibility to anticipate problems in order to have the best solutions already mapped out before they present themselves during the recruitment process.
8. Duration of the vacancy offer
Every opportunity opened in the company must have a defined deadline. This avoids higher costs with the platform where the vacancy was posted, for example, and with the time invested by HR professionals, among other expenses.
In addition, it creates a sense of priority so that the opportunity is very well evaluated and conducted on time. An important metric that must be considered within the particularities of each open position in the company.
9. Candidate acceptance index
This is also one of the recruitment metrics that needs to be given extra attention.
After all, it is the number of candidates who accepted the job offer conditions and the number of candidates who viewed or received the opportunity.
This says a lot, for HR professionals, because if the adherence was considered low, something may 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 vs. Impact on Goals
Did the planned hiring have the expected effect or did more people have to be hired until the replacement had an effect?
As a result, this type of recruitment metric helps to identify whether the desired profile, the competencies and skills and the behavior of the selected candidates are, in fact, put to the test – which can show a flawed job on the part of recruiters.
11. Investment in admission
This is an important indicator, which allows the evaluation of the total invested in admissions compared to the amount associated with the payments and benefits of the hired professionals.
Thus, it is possible to assess how much is spent on the company's selection process, and how attractive this value is based on all the charges necessary to keep newly hired employees.
12. Return on investment in training
Finally, to finalize our list with recruitment metrics, we selected the return on investment in training.
And do you know how important this is for new hires? Because they are costs related to admissions and, if a professional goes through this whole process and resigns in 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 the acceptable inflows and outflows throughout the year.
And then, we could now understand the relevance in 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 the collaborators who will make good use of the tips we have selected here!