What Recruitment Metrics Should You Track In 2021? Here Are The Top 7
As recently as a couple of decades ago, the recruitment process was extremely simple. The steps included sending a resume, sitting for an interview, and getting hired. Recruitment has now changed from this by-the-books process to something much more streamlined and effective.
Today, recruitment metrics allow organizations to understand their hiring process and modify it as and when required for optimal results.
What Are Recruiting Metrics?
Recruitment metrics are a set of streamlined measures used to estimate the success of the recruitment process. These metrics are used to manage the recruitment process and ensure that the efforts of the recruitment team are effective in getting the most qualified employees to fill the required roles.
But the question here is whether recruitment metrics truly matter in the current economy and how they can help an organization execute a fulfilling recruitment process.
Why Do Recruiting Metrics Matter?
Even though recruitment is a more human process involving conversing with potential candidates, the numbers behind the whole process also matter. The data derived from each recruitment process from start to finish can help an organization analyze gaps and potential improvements in the procedure. In addition, the metrics can help an organization understand a few simple questions about its hiring process. For example, how long does it take to hire the right person? Or how much does it cost the company to search for the right candidate?, or even the question about the efficiency of the HR department in hiring the correct candidates.
List of Hiring Metrics That Matter in 2021
Although the recruitment metrics for each organization may differ, the underlying standards remain the same. Here are the top hiring metrics that every organization needs to understand.
1. Time to Hire
The time to hire metric allows an organization to understand how long it takes them to fill a vacancy right from when it was announced. A time-to-hire metric will enable organizations to track how fast a candidate is hired until an offer is given from the first interview. It also helps to understand where lags happen in the hiring process.
2. Offer Acceptance Rate
The offer acceptance rate helps to study the actual numbers of candidates that have accepted the job. The acceptance rate is a direct ratio between the offers that have been rolled out and bought. The most common reason for having a low acceptance rate is that there are some shortcomings in your offer letter, and it is not competitive with others in the market. Analyzing the offer acceptance rate can help an organization rework its offers to candidates regarding salary, vacation days, and even benefits.
3. Source of Hire
The source of hire metric allows an organization to understand where interested candidates are originating from. It helps them analyze which job platforms prove successful - job boards, job search websites, referrals, or consultants. By studying closely which portals give you the highest number of candidates can help you prioritize these platforms. Low-performing portals can be closed to reduce wastage of corporate resources on dead ends.
4. Cost Per Hire
The cost per hire metric measures how much a company spends recruiting candidates, from interviewing to sending an offer letter. The amount spent on the recruitment process could impact a company's profit margin - no matter if the company is a big multinational company or a small start-up. Therefore, reducing the time spent hiring and streamlining the other recruitment processes can help reduce unnecessary expenses.
5. Candidate Experience
A candidate's experience is one of the crucial talent acquisition metrics that any organization needs to consider in its recruitment process. If the review time between a candidate interview and giving an offer letter is long, the same needs to be communicated to the candidate effectively. If there is no timely communication between candidates and organizations, there is a chance for the candidate to label it as a bad experience and spread negative reviews in the market. This could bring down the reputation of the organization among potential NPS Score.
6. Attrition Rate
The attrition rate is the rate at which people leave an organization. While studying the recruitment metrics and the overall attrition rate, an organization needs to focus on first-year attrition. This is the percentage of employees who have chosen to leave the organization within the first year of employment. Studying these numbers and analyzing the reasons for leaving, the organization can rework mentoring and other strategies to encourage employees to stay with them for longer.
7. Applicants Per Opening
Applicants per opening are the metric that calculates how many candidates have applied for a particular position over multiple recruitment platforms. If a job description is too broad, there will be many candidates applying for the job. Therefore, organizations need to tailor their job descriptions to target the most suitable candidates for the job.
Conclusion:
The hiring process in an organization needs to be assessed periodically to ensure that the recruitment metrics spell a positive turn. Besides, the Recruitment Platform uses Artificial Intelligence (AI) technology to help any organization recruit the right talent to fill their job vacancies. With an HR automation tool, the recruiter and the HR department can assess their recruitment metrics to understand and bridge the gap.
Author: Manikandan
Manikandan is a progressive digital marketing manager specializing in HR. Passionate about creating compelling stories and enhancing the world of recruitment. Helping businesses to automate the hiring process via AI and improve their Employer Brand with modern recruitment methods & superior Candidate Experience.