Keep These 5 Hiring KPIs in Mind for Your 2022 Hiring Strategy
If you are reading this, then you already know that KPIs (Key Performance Indicators) are vital to your recruitment strategy. But having the right indicators will not only increase your recruitment but bring in the right type of candidates.
This KPI measures the time between when a candidate is contacted for a job opening or enters the recruiting funnel and when they accept a job offer. It’s an essential measure of efficiency and helps identify bottlenecks in the recruitment process. Top talent can be off the market within a few weeks, as they’re desirable candidates. So, keeping the time-to-hire as short as possible can boost your quality of hire and lower costs. Additionally, monitoring this KPI can inform hiring decisions for specific timelines or outcomes.
Measuring the usefulness of your sourcing channels or where you advertise job openings is vital. It helps you understand where you find the most qualified candidates and the ROI of different sourcing pipelines. Set up conversion tracking tools like Google Analytics or leverage analytics tools from third-party applications to track and monitor.
Looking at ratios, such as applications to interview ratio:
This looks at the number of candidates’ resumes submitted to hiring managers for possible interviews. A higher ratio might indicate issues with sourcing or screening because the sourcing and screening process should result in only qualified candidates that meet the manager’s needs. The ideal ratio here is 1:1, according to KPI research. Monitor recruiting metrics like hiring manager satisfaction and source of hire if you notice issues with achieving your benchmark. The second piece of this ratio is your interview to offer ratio. Interviews are crucial to recruiting, but they can be a time-consuming activity for candidates and hiring managers. An unsatisfactory interview creates a higher cost per hire. Interviews are also key factors in other recruitment KPIs, such as candidate experience. The best interview-to-offer ratio is 3:1. If you average a higher rate, verify that the hiring manager writes or reviews every job description. Then focus on your sourcing and screening activities and KPIs like source quality, sourcing channel efficiency, and the number of qualified candidates.
Cost per hire:
You want to look at how much it costs to fill a position. Take into account all the associated costs, including things like how much you pay to post the job on different job boards, any referral fees, the cost of attending job fairs, etc. You should also account for the HR recruitment team time and the cost for others to help recruit and train new employees, including onboarding and interview time.
The quality of your candidate post-hire:
How long does it take for new employees to become productive, and how does that productivity compare to peers who have been doing similar jobs? It’s important to look at things like cultural fit with specific teams and overall company culture, considering measures of employee engagement to get an accurate post-hire quality.
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