Measuring a company's processes is a good practice that generates positive impacts within any organization. Employee recruitment is a key process that should be evaluated based on indicators that allow knowing if the most qualified personnel is being found and if the company is really making successful recruitment.
It may seem a complex and inexhaustible task, with many variables that can be measured.
The following list from a qualified paper writer includes 10 important metrics in the analysis of employee recruitment that, adapted to your needs, serve as a basis for implementing a measurement system in your company.
Which metrics are important in employee recruitment?
Each company should know its recruitment needs and, based on that, establish the metrics it requires to provide feedback and optimize its processes. That is to say that not all metrics are important for all companies. However, there are always generalities that you should keep in mind to validate how efficient your recruitment dynamics are.
Focus on evaluating the most relevant aspects of the process. You will get enough information to recognize if you are on the right track or if there are opportunities for improvement. Here we offer you a description of the most elementary variables to perform adequate metrics on the recruitment and hiring of employees.
1. The time it takes to recruit employees
This refers to how much time elapses between a candidate applying for an offer and their acceptance of the position. It is normally measured in days since a company that lasts months with a vacancy unfilled is incurring costs and operational wear and tear that it cannot sustain in the long term.
2. Time to fill a vacancy
This variable differs from the previous one in that it considers the time from when a position becomes vacant until a new employee arrives. In other words, it includes aspects such as evaluating the position and formulating and publishing the offer.
3. Offer acceptance rate
How many candidates say yes to your offer? If a candidate reaches the end of the process, it does not mean they will fill the vacancy. When this happens, the costs for companies are high. Calculating the total number of applicants who complete the process and identifying how many of them accept the final offer in a specific period will give information about how competitive and attractive the company is for the best talent.
4. Employee recruitment channels
Identifying the channels through which candidates learn about and apply for a vacancy is a win-win for the company. It allows you to focus your money and time resources on that medium, thus shortening the time it takes to fill the vacancy.
5. Recruitment cost
It allows knowing how much it is worth to the company to get a new employee. All expenses associated with employee recruitment (advertising, ATS, or commissions to talent agencies, among others) should be considered. You could include expenses such as overtime or temporary replacement fees. However, we suggest using only the values that are transversal to all offers to ensure more accurate information.
The process to obtain the cost of hiring an employee is to add up all the expenses and divide it by the number of employees hired in a given time.
6. Applicant retention rate
An employee recruitment process can be considered successful only when new employees exceed the first year with the company. After this time, it is considered that the company begins to recover its investment in that recruitment.
If the employee resigns, it is considered that the position did not meet their expectations, they did not adapt to the organizational culture, or the functions to be performed do not correspond to what was stated in the offer. If the employee is dismissed, the main reasons are poor performance or inappropriate behavior. Regardless of the case, all of this can be foreseen, remedied, or avoided by the recruiter. Therefore, taking this metric and evaluating each case carefully is important.
7. Application Abandonment Rate
A candidate may abandon their application for multiple reasons. Some may be the company's responsibility due to failures in the process (errors in the platform, long and complicated applications, among others).
Many companies overlook this variable because they receive enough applications, regardless of the number of incomplete applications. The point is that they could lose valuable candidates by not paying attention to the abandonment rate. In contrast, this measurement also shows the number of candidates who complete their applications, which provides valuable information about the overall process.
8. Qualified candidates by the job offer
Receiving endless applications is not synonymous with a successful employee recruitment process. Receiving applications from people who are qualified for the vacancy is. Low indicators (10 qualified applicants out of 200 applications, for example) are an alert about how offers are being presented and the channels used to find professionals.
9. Number of open vacancies
The function of this metric is to keep you abreast of your company's hiring needs. You could keep the data in general or by area as long as the total number of open vacancies is counted.
10. Level of employee turnover and recruitment process
Although it is not directly related to employee recruitment, this is an essential measurement, but it does provide fundamental information for the entire Human Resources area. A high level of turnover indicates weaknesses within the company and generates costs and problems. The recommendation, in this case, is to review all the company's processes, including employee recruitment and hiring.