Getting Started with 4 Useful Recruitment Metrics
Finding the proper individuals to fill positions is an important and yet challenging issue most HR personnel face. Furthermore, high rates of early attrition can cost a company a lot of money. This could be a result of hiring decisions that were not skill- or culturally appropriate. To secure the best performance and productivity in your company, as well as to lower turnover rates and recruitment costs, it is crucial to know who to hire.
By keeping track of statistics that are securely stored in a document management system (DMS), provides full transparency to management and key personnel. Important hiring parameters help you determine how much it costs per hire, how streamlined the recruitment process is, and more. Companies can learn a great deal about the hiring process and this insight offers opportunities to identifying what is working and what needs to be improved.
Benefits of using recruitment metrics:
- Businesses can develop focused retention strategies, minimize turnover rates, and avoid losses before they occur.
- HR analytics can sort through all the data and capabilities of prospective applicants’ by using algorithms to create a shortlist of the most qualified and suited applicants.
- Improves the likelihood that you will make the appropriate hire the first time around, saving your organization time and money in the process.
- Understanding which employees are quitting and why, your retention rate, which departments have higher-than-average turnover, and predicting which employees are most likely to leave in the future are measurable related to attrition.
- Enhance the candidate experience and identifying bottlenecks in the recruitment process. This contributes to offering a smooth and engaging hiring and onboarding process that improves employee retention and your employer brand.
- An impartial hiring procedure allows you to find individuals who are deserving of the position from a varied pool of talent. There is no human interference or prejudice involved in shortlisting candidates.
- For many businesses, recruiting diverse candidates might be difficult. However, with the appropriate information, HR specialists can keep track of their diversity initiatives and adjust as needed.
HR professionals can improve the recruitment process through better hiring decisions and create a strong workforce for the company by embracing data-driven hiring. To make significant improvements in your recruitment funnel, it is crucial to examine the information that the data is giving you and then take appropriate action. Here are just a few formulas that can help you get started with HR metrics.
Time to fill
Number of days between posting a job vacancy and hiring the candidate
This is the total number of days it takes to recruit and hire a new employee. Count the days that pass between the approval of a job request and the candidate accepting your offer. The time to fill can be affected by several variables, including supply and demand ratios for certain positions and the efficiency of the hiring team. It’s a valuable metric for business planning and gives management a realistic picture of how long it will take to find and hire a replacement for an employee who is leaving.
Time to hire
Number of days from the moment a candidate is approached and the moment the candidate accepts the job
This formula determines the period from when a candidate applies for a job or is contacted to apply and the time the candidate accepts it is known as the time to hire. In other words, it calculates how long it takes a candidate to advance through the hiring process after submitting an application. Thus, time to hire offers a reliable measure of how well the recruitment team is doing.
First-year resignation rate
Employees who left the organization within 1 year / headcount
The result of this formula should be 0. If it is higher, it indicates a bad fit with new recruits. Candidates that leave during their first year with the job create an expensive process because they do not develop into fully productive employees. The bad fit could be due to the job description not matching the position, or there was a skills and cultural issue that was not identified.
Application completion rate
Total number of people who completed the application / total number of people who started with the application
If this figure is high, it may be a sign that there are problems with the application process. It can be a glitchy website with extensive forms to fill out. Many online processes require the applicant to upload their CV and enter a lot of information that can be tedious and time-consuming. Testing it out yourself is an easy way to identify reasons why candidates abandon the application process. You will gain a better understanding of potential areas for difficulty and how to address them.
Secure Data is Everything
Talent acquisition is becoming more difficult. With an increase in remote work, candidates and companies alike have a wider choice and that increases competition for talent. Businesses are competing for the same talent as new technology and corporate business models develop. Furthermore, because technology is causing jobs and skills to change, company executives might not even be aware of their own future talent requirements. In this setting, recruiters must manage a more complicated variety of requisitions with unfamiliar and specialized needs. KRIS HR Document Management System is a beneficial tool for human resources to collaborate, store, share, and maintain confidential data on the workforce.
Find out how a HR Document Management System can simplify your everyday HR processes.