Reliable data is key to making sound business decisions, and how your business recruits employees is no exception. But without a framework to build upon, how do you know what to analyze? Let’s examine seven recruiting metrics HR professionals should have in their back pocket.
Recruiting Metrics HR Professionals Should Know
Time-to-fill is the amount of time it takes to fill an open job position. Time-to-fill can illuminate a lot about your recruiting process, including:
How effective the job description is
If the process is taking too long
If you’re recruiting on the right channels
If you need to anticipate hiring needs further in advance
Time-to-fill is a great number to have in your back pocket if you’ve been considering revamping your recruiting process. But don’t get it mixed up with time-to-hire! While time-to-fill begins once a job application is posted, time-to-hire starts once a candidate has applied for a position.
As mentioned above, time-to-hire refers to the time frame between when a candidate applies for a position and ends when they accept a job offer. Although this metric will vary depending on industry and job function, companies who boast shorter times to hire generally have better talent management and retention rates than companies who take longer to get a candidate in the office.
One of the most important recruiting metrics to know is how much it costs to hire a new employee. According to Glassdoor, the average US employer spends $4,000 and 24 days to hire a new employee. To determine your cost-per-hire, divide how much you spent on recruiting (the sum of external and internal costs) by the number of hires you made in a given time period. A number of factors will impact cost-per-hire, but some of the most notable include:
Time spent reviewing and interviewing candidates
Costs of advertising on job boards
Do you have a reliable pipeline for recruiting employees? Do you know where your best candidates came from? If you aren’t keeping track of which channels generate the best employees, you might be wasting time, energy, and money searching in the wrong places. Find your sourcing channel number by determining the amount of money you’re spending per platform divided by the number of candidates you hire per platform.
Maybe career fairs regularly turn up great employees, or perhaps Indeed.com is a reliable source for your business. Regardless, keep track of how many qualified applications come from each source and where your new employee first heard about the position.
Offer Acceptance Rate
The offer acceptance rate is the percentage of candidates who accept a job offer. The average offer acceptance rate for medium and small businesses is 68%. If your offer acceptance rate percentage is noticeably lower, it’s time to think about the following:
Are you dragging your feet through the hiring process?
Is the job description accurate?
Is the starting compensation too low?
Are candidates aware of all the benefits and perks you offer?
The applicant-per-hire metric tells how many applicants on average you need in your recruiting pipeline before you confidently make a job offer. By knowing your applicant-per-hire metric, you’ll have a better idea of where and how to recruit candidates, as well as reducing time-to-fill and increasing the odds of finding great talent.
First-Year Retention Rate
If your business struggles to retain employees, you’re likely losing thousands of dollars a year. The cost of losing an employee includes lost productivity and low engagement, as well as the price of hiring, onboarding, and training a new employee. A lot of employee turnover occurs within the first year of employment, so it’s important to note which positions are the most difficult to keep filled and why employees are leaving your company.
In addition to first-year retention rates, you should analyze retention for specific positions and departments. Keep an eye out for trends and determine where you need to make changes to improve employee retention.
How to Track and Report on Recruiting Metrics
Review and analyze these metrics at least once a year, if not once a quarter, depending on how many employees your business hires. An applicant tracking system can aid in building and analyzing recruiting reports. Dominion’s Applicant Tracking System allows hiring managers to easily vet potential candidates, store qualified applicants, and slash the time it takes to hire new employees. Our software lets you connect with Indeed, run hiring analytics, and move candidates through the process with intuitive email correspondence. Request a demo to learn more about our robust Applicant Tracking software!