Recruitment Metrics That Showcase Your Recruiting Efforts

Simply stating that you have efficiently and successfully hired top candidates means nothing to your C Suite unless you can back it with data. We discuss 4 hiring metrics to determine the effectiveness of your recruitment process.

Recruitment Metrics That Showcase Your Recruiting Efforts

Simply stating that you have efficiently and successfully hired top candidates this year means nothing to your C Suite unless you can back it with data. Recruitment metrics are a set of measurements that you can use to monitor, evaluate, and improve your hiring process.

As a recruiter, you need to know which data to collect and how to interpret them. In this article, we will discuss 4 hiring metrics which you can use to determine the effectiveness of your recruitment process.

4 Recruitment Metrics Hiring Managers Should Keep Tabs On

Time To Hire

Time to hire, also known as time to fill, is the number of days you take to hire a candidate for a position. It is measured by calculating the difference between the start time and the end time.

The start time is the day on which you are given the approval to start filling a vacancy. While the end time can be the day on which you make an offer, the day the offer is accepted, or even the day the candidate starts to work.

It is an important metric to watch as it provides an indicator as to whether you are taking too long to hire a candidate. According to SHRM, the average time to fill a position is 36 days. As an average, this figure can act as a benchmark to inform you whether or not your time to hire metric is too long.

Time To Hire

One effective solution to reduce the time to hire would be to use Talent Acquisition software that is driven by AI. This technology and the tools it provides can save you time by automating the sourcing and screening of applicants – processes which could take ages for members of your team to perform.

For example, you can determine keywords, skills, qualifications, and experience that should appear in applicants’ resumes. The software will identify suitable applicants for you to look into and automatically eliminate those who don’t. From there, you can focus on your shortlist and spend time getting to know them better instead of performing initial screening.

Cost Per Hire

Cost per hire is another of the notable recruitment metrics which recruiters keep tabs on. It is a measure of the total recruitment costs associated with filling a vacancy. It can tell you whether or not your recruitment process is cost-effective.

Cost per hire is calculated by taking the sum of the internal and external costs, and dividing it by the number of hires made from these hiring efforts.

Internal costs are expenses made within your organisation as a result of the recruitment process, including the following:

  • recruiter salaries
  • employee referral benefits
  • costs of the interview
  • infrastructure costs, for instance, any expenses made on office equipment to conduct the interview

On the other hand, external costs are expenses due to services outside the organisation, or expenses related to the new employee. They can include the following:

  • advertising fees on job portals
  • travelling and relocation costs
  • professional recruiting firm fees

The report by SHRM suggests that the average global cost per hire is $4,425. If your own cost per hire is much higher than this average value, then it is may be an indication that your recruitment process is not as streamlined as it can be and you need to take actions to improve the process.

One way would be to reduce the cost per hire is through more targeted job advertising, which results in your budget being used more efficiently. Personalised recommendations help you locate the most suitable candidates in a much shorter time. Again, this is something that your &Team software can provide recommendations on.

Employee Turnover Rate

Increase Employee Retention Rate

This metric gives you information on the number of employees who left their job, either through resignation or termination of the contract over a certain period. It is calculated by taking the number of employees who left the company during the measurement period and dividing it by the total number of employees working there during the same period.

Refilling an open vacancy means that you have to go through the entire process of advertising and sourcing applicants again, which is unnecessarily costly.

It also means that your employees may be unsatisfied in their positions, which is bad PR for your brand.

The average annual turnover rate is between 14 and 19% in South Africa. If your own turnover rate is higher, you need to ensure that your recruiting practices are optimised and that you are doing everything you can to support the career and personal growth of your workforce.

Offer Acceptance Rate

This metric indicates how competitive and attractive your job offers are. The offer acceptance rate is calculated by taking the number of candidates who accepted their job offers and dividing by the total number of candidates who were given a job offer.

According to SHRM, 91% is a benchmark for offer acceptance rates and indicates that your job offer is competitive and attractive.

On the other hand, if it is very low and candidates keep declining your job offer, it means that you need to improve the job offer package. This could be to increase the salary, provide better career progression opportunities, add medical aid benefits, or increase vacation time.

Increase Offer Acceptance Rate

Following Metrics Allows You To Quantify Hiring Success

We live in a data-driven world where executives want to see numbers to evaluate the hiring team’s performance. These 4 recruitment metrics discussed in this article will allow you to quantify your recruitment efforts. You can compare with the given average benchmarks to determine your success and if you find that you are not performing well, take the necessary actions to improve where needed.