Recruitment efficiency varies on the company’s talent acquisition KPIs, with numerous of these metrics existing. Let’s say recruiter performance is partly measured by the time to hire KPI. As such, these metrics allow managers to analyze the recruiting team’s strengths and weaknesses, along with each member’s recruitment efficiency.
That probably has you wondering what recruiting KPIs make the most impact on recruiters, candidates, and the entire organization. Did you consider the recruitment metrics that can help you become a better recruiter to support the organization’s objectives while saving more time and money in the long run?
That’s right since recruitment is a significant investment, recruitment metrics can help you see what areas require improvement to ensure that all the money and energy go to the right places. With that in mind, here are the recruitment KPIs you need to measure!
What is Recruitment KPIs?
Recruitment KPIs (Key Performance Indicators) are metrics that help measure the hiring process and recruiting team’s effectiveness. These KPIs use data to offer insights on how close or far recruiters are from reaching goals. Furthermore, they help make more strategic decisions on where to allocate the department’s time and money.
Many of these recruitment KPIs may seem like mere numbers. Still, once you analyze them in the context of the organization, you’ll understand how you connect with target candidates to make necessary adjustments and improvements to achieve goals more efficiently.
When looking at KPIs, ensure you know what you compare them with. Check out recruiting benchmarks or compare results with previous times, such as from month to month or year to year.
The Recruitment KPIs to Track
So, what are the most crucial recruitment KPIs you need to track? Here are the ones you can get started with:
Qualified Candidates Per Opening
It’s nice to receive a lot of job applications for a job opening since the more applicants, the more choices to make when hiring one.
But if any of those candidates aren’t qualified for that particular position, you and your team are wasting time. When you don’t connect with qualified candidates, it means you’re not posting strong job listings or publishing them on proper platforms. It might also mean you set unrealistic expectations of the ideal candidate to hire.
To identify if there’s a more significant issue, measure the ratio of qualified candidates per opening. This KPI tells you the number of capable people for the position versus those who aren’t. When you track this KPI, you can identify if you’re reaching out to the right people from the start.
If you have a low ratio, check your job listings and see how you can better target the ideal candidates.
Application Completion Rate
It isn’t common to see applicants fill out job applications only to stop in the middle of it. Some people get busy or self-eliminate when they don’t feel like they are suitable for the job. However, if you continue seeing high numbers of application abandonment, there’s something wrong.
That can be a sign the application process is too long or complicated. Determine the application completion rate by dividing the number of submitted applications by the total candidates who began applying.
When your resources are spread thin, you need to ensure you get the most out of the processes you implement. If you pull applicants from various sources like LinkedIn, referrals, or job boards, you shouldn’t waste your time on sources that don’t give you high-quality applicants.
When you measure source quality, you can better ensure you invest in the best sources for the recruitment process. That way, you can create a reliable pipeline, which helps you improve the entire recruitment process.
Determine source quality by looking at how many high-quality candidates the organization receives from every source. Look at where every high-quality candidate comes from and identify any patterns. For example, if you see that the best candidates come from one source, like referrals, it’s time to strengthen the employee referral program.
Time to Hire
The time to hire is how much time it will take to shortlist, interview, and hire new employees from the time they apply. This should include the entire process and not only after you decide.
When you know how much time it takes to hire new employees, you’ll learn more about forecasting, thus shaping the recruitment strategy. If you see the hiring process would take 2-3 months, you must start an improved recruitment campaign to get new hires at an appropriate time.
Once you have a better plan for the amount of time required to find the most suited new hire, you can prevent the team from feeling overwhelmed, ensuring that things are running smoothly.
Furthermore, you get to discover any bottlenecks in the hiring process, prepare strategies to eliminate such obstacles and reduce hiring time.
Quality of Hire
When recruiting, you obviously want to find the most suitable candidate and not just anyone who’ll take the job. When you measure the quality of hire, you’ll learn how successful the team was in getting the right person for the open position.
This KPI is a bit trickier to measure as quality is specific to the company and goals, so you must define what quality is to you and the company. You can look into factors like how long it will take for an employee to show full productivity, how they fit in the company culture and the hiring manager satisfaction.
While everyone is different, and it’s tough to determine if an employee will be the right fit before bringing them on, you’ll be able to identify any high or low-quality hires that will help you know whether they are suitable for the company or not. From there, you can adjust the selection criteria.
Cost Per Hire
Recruitment will always be an investment. Even then, it would be best to make sure you aren’t spending more than required and that the money spent is focused on bringing in high-quality employees.
That’s where the cost per hire comes from, which tells you the average amount spent hiring someone new. This helps you ensure you aren’t overspending or wasting money, and it allows the team to further budget and plan, especially for companies with big expansions.
Besides looking at the average cost per hire, you should also check individually for each cost per hire. When you compare that number to the average amount, you’ll see if there are strategies to follow to cut costs without sacrificing your quality of hire. You might also notice that investing more will result in stronger candidates and employees in the long run.
Interviews to Hire
Interviewing is a complicated and time-consuming recruitment stage and crucial to get high-quality hires on board. That said, you must ensure every interview is a productive one.
When you know your interviews to hire, you’ll learn how many people needed to interview before you give an offer to one candidate. This will help you understand the necessary applicants for every opening and how many people should be invited for every interview round. Because many companies have multiple interview rounds, you should look at this ratio from one stage to another one. You can invite applicants to interview over the phone, then incite a smaller number to interview face-to-face. When you know how to progress through every interview phase, you can make sure you speak with the proper number of candidates.
Offer Acceptance Rate
When we offer someone a job, we always hope that they accept. However, this isn’t the case all the time! Recruitment is a two-way process, with the candidate sometimes rejecting an offer.
We always can’t expect candidates to accept a job, but it’s a red flag if many people aren’t taking the position. It can mean something wrong in the recruitment process or that the company has larger red flags you need to resolve!
Because of that, the offer acceptance rate is a crucial recruiting KPI you need to track. Simply divide the number of offers accepted with the total number of offers you sent.
A great experience with an organization will leave a lasting impression. If candidates are satisfied, they will be more likely to accept the job offer. If they don’t receive a job offer, they may still feel encouraged to apply for another position if the opportunity comes!
You can measure candidate satisfaction by sending simple surveys to ask if they have positive or negative experiences during the interview process. It will give you information to identify any patterns and draw proper conclusions.
Make sure you keep the survey short, asking a few yes or no questions, along with an open response where they can share their thoughts and opinions if they want to. After that, you can use the information to improve the overall candidate experience.
Hiring Manager Satisfaction
Just like how important it is to measure how satisfied candidates were during the recruitment process, you must measure how pleased the hiring managers are with the new hires.
If hiring managers are unhappy with the new hires, it can show that the selection criteria aren’t relevant to the roles or there were hiring managers who weren’t as invested during the process.
Like measuring candidate experience, you can measure the hiring manager’s satisfaction using a short interview or survey. You can go deeper with questions since you’re asking internal team members. Make sure you ask hiring managers what the recruiting team can do to improve. Once you bring them on board with the decision-making process, hiring managers will feel even more fulfilled with their ideas and opinions heard.
Wrapping It Up
Making your recruitment process go even smoother isn’t just about using the most advanced technologies. You should also track, analyze, and improve your recruitment KPIs. Hopefully, our list of the vital recruitment KPIs to track helped you and the organization in the long run!
If you want to get started on measuring these KPIs, you can use tools and platforms that can measure them efficiently and receive reports to analyze. That way, you can get all the insights needed to improve your recruitment process. Good luck, and let us know your thoughts on these recruitment KPIs or tips to share.