Recruiting Metrics and KPIs Worth Following

Recruiting metrics are used to track hiring success and optimize the way your company reaches its goals. These metrics are usually shown by key performance indicators (KPIs) that can effectively track hiring processes. It is important to understand which KPIs and metrics are most worth looking at for your business. Doing so can improve your return on investment (ROI) and help you hire the best candidates that fit most with the company. Following metrics and KPIs can also help your business save money and time, as well as improve the efficiency of the recruiting and hiring process.  

Top KPIs and Metrics 

Time to Hire 

One of the most common metrics used to look at hiring processes is the time to hire for a candidate. This specifically refers to the number of days it takes to hire a particular candidate. Talented candidates are usually in high demand, so keeping your time to hire as low as possible is a good indicator that more gifted candidates are applying for and showing interest in the job. Time to hire can also signify that your company is moving these qualified candidates more quickly through the hiring process. It also allows managers to see how long it will take to find a replacement for empty positions.  

Offer Acceptance Rate 

The offer acceptance rate is the rate at which potential candidates accept the number of offers your company extends. This is a good indicator of your company’s reputation and the benefits you may offer. It can also be an indicator of the amount of compensation you are offering and if it is a competitive salary. Working with the finance team to find good salaries to offer while also letting candidates know the compensation is competitive can help increase your acceptance rate and fill positions more consistently.  

Quality of Hire 

This metric takes more time and can be measured in many ways, but it is important to measure the quality of the people you are hiring. Quality of hire can most commonly be measured by the success ratio, which is the number of candidates you consider to be satisfactory, divided by the total number of candidates hired. A higher ratio means more talented candidates are being hired. Conducting audits to measure employee productivity at different benchmarks can help you see whether you are hiring fully qualified people. Low first-year performance indicators are signs of poor-quality hires and can result in thousands of dollars lost. If this is happening, it is important to look at the criteria you are using to hire candidates, and more strict qualifications may need to be put into place to prevent poor candidates from being considered.  

Selection Ratio 

The selection ratio of your company correlates to the number of candidates hired divided by the total number of applicants. A lower ratio means there are a lot of people interested in the job, and you are most likely to get a range of higher skilled candidates. While recruiting large numbers of applicants can be time-consuming, these processes can be optimized by using AI screening processes, predictive hiring assessments, and video interviews to make sure the processes are not taking too much time. On the contrary, if the selection ratio is high, it is likely you are not getting diverse enough candidate pools and need to improve your recruitment strategies. This can usually be done through marketing and increased engagement such as career fairs, social events, and more. It is important to optimize your selection ratio to a small number to make sure you are recruiting the best talent. 

DE&I 

Diversity, equity, and inclusion is a huge metric that can help boost company performance and lead to more applicants applying. Companies with diverse candidates hired have a cash flow that is 2.3 times higher than those that do not, and they also have a 70% greater chance of capturing new markets. It is important to note that a dwindling number of applicants could signal that your company is not welcoming to distinct cultures or backgrounds. Make sure when recruiting to explain diversity programs or groups your company may offer and boast about potential diversity statistics that make your company stand out. Skilled and diverse candidates are more likely to apply for open positions if they feel comfortable with the company values and culture.  

Cost Per Hire 

The cost per hire metric is the total number of internal and external costs divided by the number of candidates hired. These costs can include advertising, agency, and new hire training expenses. This is extremely important to your company’s financial wealth and making sure you are not going out of budget to hire candidates. If it is too expensive, then strategies need to be changed to lower your price point to get new employees. On the contrary, not spending enough money on recruiting can be a sign of poor processes and can lead to lower quality of hire.  

Recruiting the Best Candidates

There are several key metrics and KPIs worth following to improve your business efficiency and improve the quality of your hires. While there are many more out there, the previous metrics mentioned are the ones that will lead your company to success. Understanding these metrics can also save your company money eventually by hiring more talented workers who conduct work efficiently.  

To learn more about recruiting key metrics and KPIs, reach out to the experts at Bull City Talent Group.