When growing is the goal, check out our top 5 recruiting metrics for every small business owner or operational leader to keep at the top of their mind.
Using data is at the heart of every successful talent team’s adventure. When understanding the demand and supply dynamics in the job market, recruiters can redefine their hiring strategy for better efficiency and outcomes.
There are arguably 50+ Key Performance Indicators (KPIs) that a talent acquisition function might use to measure, assess and predict capability. If a talent leader is not focusing on the right metrics, it will be easy to get swept up in data fatigue, lose complete focus and miss key milestones or training/coaching opportunities along the way. So where do you start?
Which recruitment metrics matter the most during early stage rapid growth?
Check out our Top 5 KPIs to assess overall recruitment health of your company when experiencing or anticipating quick and high growth.
Top 5 Most Relevant Recruitment Metrics
1. Time to Fill - the number of days it takes your recruiters to fill a requisition from the opened date to date of offer acceptance.
Measures? Pipeline depth, market challenges, operational obstacles, and/or recruiter performance (in some cases).
2. Time to Start - This one is different from TTF in that it measures the number of days from opened date to days before the person starts. Most important for skilled/revenue generating roles.
Measures? Pre hire on-boarding efficiency, lost/gained revenue in standardized new hire orientation and training.
3. Cost per hire - Average spend per hire, inclusive of sourcing spend as well as recruitment personnel cost, but may assess differently. Most the time it is Total Recruitment Cost divided by Total Number Hires, and is a rolling average.
Measures? Departmental effectiveness overall and to scale, forecasting.
4. Source of hire - As simple as it sounds, this will be the most challenging for any company to pinpoint. Welcome to the club. Remember the rule of 7 in marketing? Recruiting is no different, and smaller growing organizations will require even more touchpoints as they build out their brand. Set a shelf life for each source and automate as much as possible without having to rely on recruiters to manually update. Give yourself grace and ensure executive leadership understands there will always be many influencing reasons that led to the conversion.
Measures? Source effectiveness for hiring. Entire Recruitment funnels should also be measured by source as more data is collected.
5. Quality of Hire - Some recruiting leaders will adamantly disagree on this one. That’s a blog for another time! Truth is, any respectable talent function cares about this- and they should. Every company will regard “quality” a bit differently, but most will consider attrition, performance scores, and hiring manager satisfaction as criteria to declare a new hire has officially transcended to highly valuable contributor.
Measures? Source and recruiter effectiveness, but in time will provide valuable insight to the organization and talent acquisition/management function about return on investment.
On your (bench)mark. Get set, and go.
Make sure you have agreed upon benchmarks and action plans that will be used when targets are not met. Clear and reliable methods for tracking and reporting should be set before applying recruitment analytics to hiring plans, performance reviews, and team training.
Understanding and consistently monitoring KPIs for your talent acquisition efforts is necessary for any organization, regardless of their size and where they are in their journey. But for those in early growth with exponential hiring goals, these KPIs especially should not be overlooked when establishing a core foundation for success. Monitoring regularly will allow you to quickly adapt as obstacles inevitably arise without derailing key milestones!
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