Like most jobs, we can create a process for measuring your recruiting performance.
Making the right recruitment decisions is important, the right staff can make or break an organisation. So, it’s understandable that recruiters should be critiqued on their performance just as other roles in the organisation are. But how?
Here are eight recruitment metrics and how to calculate them.
#1 Time to Fill the Role
This metric analyses how efficient the team and their recruitment process are. Contacting candidates immediately after they apply, while they are still keen, can improve the time to fill rate. It can be worth breaking down the different components of the process to see where the bottle neck is. How many days did it take to organise interviews and complete the offer?
Formula for Time to Fill:
Time to Fill: Total Number of Days the Job Went Unfilled
Average Time to Fill: Total Number of Open Days/Total Number of Open Jobs
#2 Offer Acceptance
Some might argue this isn’t a fair metric because a recruiter has little influence on whether or not a candidate decides to accept. But if the organisation’s offer acceptance rate is low, it’s up to the recruiter to find out why. They need to ask for feedback about the reason they accepted a job elsewhere and research what competitors offer that their organisation doesn’t.
Formula for Offer Acceptance Rate:
Offer Acceptance Rate as a % = Number of Acceptances/Number of Offers x 100
#3 Quality of Recruits
Quality of new employees is subjective but if you ask the new recruit’s manager to score their new staff member on a four of five points after the probation period, it’s an unbiased look at how well the recruitment team did at selecting the right employee. A high-quality recruit rewards the organisation with incredible productivity of work that is of an excellent standard. They are a good fit with the culture of the organisation and work well as part of the team. Their high level of job satisfaction means they will stay with the organisation longer providing a high return on investment throughout their tenure.
Formula for Quality of Recruits:
Quality of Recruits = (Job Performance + Ramp-up Time + Engagement + Cultural Fit as scores out of 100)/Number of scores
#4 Cost Per Hire
Cost per hire is one metric that can be calculated. Include hard costs like advertising on job boards and the internal costs related to the time of the acquisition team to conduct the interviews and make the offer. The adage ‘you have to spend money to make money’ is true here, you want to keep a check on what you spend to gain a new employee.
Formula for Cost Per Hire:
Cost per Hire = Total External Costs and Total Internal Costs /Total Number of Hires
#5 Retention Rates
You might hire the most amazing candidates but if they aren’t staying much past three months, it’s costing the organisation. Also referred to as ‘stability index’, some would argue the acquisition team isn’t accountable, that it’s up to line managers to keep their new recruits happy. But it’s an important metric for the organisation to know and to find answers if the retention rate is low.
Formula for Retention Rate:
Retention Rate = Total Recruits Employed at End of Specified Period/Total Employees at Start of Period x100
#6 Selection Ratio
The number of hired candidates to the total number of candidates is the selection or submittals to hire ratio. If there is a high number of candidates and only one opening, the ratio will be close to 0.
Formula for Selection Ratio:
Selection ratio = Number of hired candidates/Total number of candidates
#7 Recruits’ Job Satisfaction Rating
Surveying all new employees after three or six months, and giving responses a score, allows you to determine their level of happiness. A poor score may show there is a cultural mismatch between employee and organisation or their expectations of the role differ from reality. The insight assists with future recruiting because you can recount the positive and negative parts of the role. Job satisfaction level also represents the future turnover rate of these employees.
#8 Diverse Workforce
With so many organisations claiming to be equal opportunity employers now, do they have the stats to back up their claim? Equal opportunity ensures no discrimination in hiring decisions based on gender, race, religion, age, sexual orientation, disability and national origin. A diverse workforce can have a better rate of innovation and lower turnover. Research by Glassdoor revealed a diverse workforce was important for 67% of job seekers.
While there is no formula, organisations can keep track of the diversity of its workforce and whether it is increasing or decreasing by keeping stats on the number of staff that are part of a minority group. To achieve the highest possible metrics for your recruiting efforts, give yourself a helping hand with the sophisticated software offering Talentology.com.