Most HR practitioners know the true engine block that runs any business is the recruitment process. It may be only one of the many important functions of HR, but possibly it’s the most potent. For those not in the know, recruitment is like the background noise to a business; for those who do know, it’s the main song. Without good people, you don’t have a successful company.
But how does recruiting personnel become the vital process that it is? People are as varied as the stars and how can you be sure you’re bringing the right response to your door, and appointing the best candidate for the job and for the company? It’s a tricky business and that’s why turning to measurements is key.
Recruitment metrics means analysing and tracking the recruitment process with a view to: optimising the process; setting attainable goals; making more informed decisions; managing and improving the process; evaluating cost, time and effectiveness; monitoring where you should be allocating time and budget; getting the best return on investment. When you’re trying to make decisions that will powerfully impact your company you need measurable recruitment goals and accurate data that will give you reliable feedback on achievements – feedback that can be applied to the next project, and the next.
Your measurement steps: the metrics to track
Time to Fill:
This is the metric that will help you evaluate how long it is taking to fill a position – from the initial publication of a post, to identifying a suitable candidate, to acceptance of an offer, and finally bringing the candidate on board. Your hiring speed is important because it will give you an indication of what works and what doesn’t, where speed and efficiency has won the day, and where bottlenecks may be creeping in. It’s the metric that regulates and builds speed and confidence, always working to improve choices and speed in selecting and placing the right candidate.
Time to Productivity:
The faster a post is filled, the less disruption to a company or team. However, the factors that affect this speed can vary, and no one job placement will necessarily follow the steps of another. The availability of the candidate, the remuneration negotiation, the verification of experience and qualifications – can all take time depending on the individual candidate’s circumstances and expectations. This measure tracks the time it takes for a new employee to become fully functional in their job.
Cost per Hire:
From the moment you begin the process of filling a position, there is a cost involved – from the initial advertising, to interview time, to onboarding and training. If too much time is taken to fill a position, the cost to a company can be considerable.
Source of Hire:
Which method of advertising has brought you the best candidate, and most efficiently? This choice depends on the type of job being advertised, and the type of candidate being sought. Keeping track of media such as newspapers, magazines, social media, professional networking, radio, agencies, word of mouth, local or international sourcing, etc, is helpful in planning your next exercise. HR Analytics track the number of applicants coming from each source, indicating how many candidates were shortlisted, selected and appointed. This will refine decisions down to those that deliver the maximum results, significantly benefiting your budget.
Quality of Hires:
This metric reflects the number of candidates who accepted your offer against those who stayed over a useful period of time. This will give you an idea of the quality of candidates who will be loyal, and therefore a truer picture of the best candidates and the effectiveness of the recruiting process. If selection is poor, managers are going to be wasting time interviewing and valuable resources on training the wrong candidates. HR Analytics works to enhance this vital aspect by building models based on performance data that can be fed back into the assessment process.
Business Acceptance Rate:
The percentage of candidates submitted by HR who are ultimately hired by the business is an excellent way of measuring how well HR is sourcing and screening candidates. A low rate indicates the company is not happy with the candidates they are receiving, while a high rate means that HR is working to form, and succeeding well in the task of finding the best talent for the organisation.
Candidate Job Satisfaction Rate:
This is a useful metric in helping improve productivity. If employees are not happy in their role, this will reflect in the standard of their work and the rate of attrition. Either way, your business goals are negatively affected if your employees slack or wish to leave in regular numbers. Recruitment is an expensive business and it’s worth far more to keep your trained, experienced staff than see them leaving because of unresolved issues.
Offer Acceptance Rate:
Keeping track of how many candidates are offered a job compared to how many accept the offer is a useful tool for evaluating the competitiveness of your remuneration packages. If it is not easy to present a competitive market-related salary, you could compensate with a more attractive benefits package. Flexible working hours, or days working from home are just two perks that many people prefer and which don’t add to costs. This metric may also highlight issues within the workplace that give your company a lacklustre reputation.
Employer Branding Score:
Gauging the satisfaction of candidates on the way they are treated is becoming more important. Candidates might be measured on how likely they are to recommend working for your company to other people. In today’s world of social media, this measure is important with regard to the branding of the company as a whole. A dissatisfied candidate can put out bad reports on Twitter, Facebook, Instagram, etc, and create a hostile profile for your company. Your company’s reputation among customers is no longer distinct from your reputation as an employer. It’s good to remember that candidates may also be customers, or potential customers. Communication in this area is key, and often neglected by companies. There should be a strong focus on ensuring a positive candidate experience throughout the recruitment process regardless of whether the candidate is hired or not.
The new value of Human Resources
At the HR Analytics Institute we believe there is a smarter way to get the best out of your staff and improve your business. Not only do we clearly see the potential to improve business through better relationships, but we are passionate about training HR practitioners to understand the value of their interface role between staff and management. Our practical courses will enable you to play a far greater role in strategic decision-making within the business as a whole.
Find out more about us at: www.hranalyticsinstitute.com