Finding, attracting and hiring great talent is hard. The market has become increasingly competitive. Hiring trends in 2019 determined that things were looking up for job seekers, which means employers need to be more vigilant than ever when it comes to their recruiting process.
With this in mind, it’s time to look at the key metrics your hiring team should consider.
Incorporating data into your recruiting process can help with employee retention, not to mention it helps your recruiting team to make better hiring decisions based on reason—no more relying on “gut feelings”.
There are several metrics you can measure to help with your recruitment strategy, but we’re going to look at five recruitment metrics you need to get started on a data-driven approach.
1. First Year Attrition
This metric helps recruiters determine hiring success. A candidate who leaves within the first year of a new position costs a company a lot of money, they also never reach their full potential when it comes to productivity.
Attrition, or turnover, can occur for various reasons. When it comes to a new hire, an employer may make the decision to terminate the contract after determining the employee is not the right fit. Or, an employee can elect to leave a new position for a variety of reasons including dissatisfaction with the role, the company, or because they found a comparable position offering better pay or benefits, or both. Either way, it’s important for HR to measure attrition.
Calculating first year attrition is slightly different from measuring your overall turnover rates.
To determine how many of your new hires leave within the first year of their employment you’ll need to calculate the number of employees who have left before the one-year mark, (within a given period) and then divide that number by the total number of employees who have resigned during that same time frame.
2. Selection Ratio
If you’re using recruitment software or hiring-specific tools as part of your hiring strategy, you’ll want to know whether they’re supporting you the way you want. Measuring your candidate selection ratio can help you assess your various recruitment tools. Think of it as an A/B test of sorts. You’ll use different tools to select candidates, and then measure how many candidates were selected from each tool used to collect them. This will provide insight into what tools are bringing you the candidates you’re looking for. It will also help you limit the various pieces of your recruitment strategy.
Selection ration is measured by dividing the number of hired candidates by the total number of candidates.
3. Candidate Experience
Yes, there are many metrics out there that can help you make changes within your recruitment process, but one that’s often overlooked is the candidate experience.
This metric is important because it tells you how potential recruits view your hiring and onboarding process, both of which can impact (negatively or positively) your retention and employee satisfaction rates.
Candidate experience is directly tied to your employer brand. Many liken it to a report card of sorts—it’s a detailed overview of how past candidates feel they were treated and communicated with during the interview process. Candidate experience is hugely important particularly in today’s competitive employee market. With more unique positions opening, requiring specific skill sets, it’s more difficult than ever before to find and hire the right talent. Add to this the fact that websites like Glassdoor and even LinkedIn have made the recruitment process far more transparent. A report from Glassdoor indicated that 55 per cent of job seekers who read a negative review of a company decided against applying to the organization.
The only way to measure candidate experience is to reach out to candidates directly using a candidate experience survey.
4. Source of Hire
When searching for candidates, often a hiring team will post a job opening to multiple sources. Tracking the source of hire (SoH), while tricky, can help ensure you distribute your hiring resources to the right channels.
Measuring SoH shows the percentage of your hires found their way to you through each hiring channel you use. To measure SoH you can:
- Pull data from your applicant tracking system (ATS), your ATS will record the source from which a candidate entered your hiring pipeline
- Examine web analytics
- Use a survey: often within the initial hiring process while filling out an online application companies include a “how did you find out about this position” question. Make it mandatory to answer
There are some limitations to measuring source of hire, particularly, focusing only on candidates you hire negates those who came close to getting the job—you want to be able to track where all high-ranking candidates were sourced from.
5. Application Completion Rate
Application completion rate is exactly as it sounds. It’s also one of the most important metrics you can use in recruitment.
By tracking the number of candidates who start to fill out an application against those that submit the completed application you gain insight into the perceived complexity of your application process.
There was a time when employers had no qualms about requiring candidates to spend anywhere from 20 to 40 minutes filling out an online application, despite requiring recruits to also upload a resume (which in theory would provide a lot of the information being requested in the online application). But this no longer flies. A CareerBuilder study found that applicants aren’t willing to spend more than 20 minutes on application, after this point, they’re more likely to abandon the application.
Measuring application completion rate is simple, simply divide the number of submitted application by the number of applications started. If you find yourself with a low application completion rate your application process is probably too long and too complicated.
Recruitment metrics aren’t limited to the five outlined above. There are many more types of data you can calculate and measure within your hiring process. Data-driven recruitment is important to measuring your hiring strategy’s effectiveness.
A well-constructed recruiting process supports your employees, your candidates and saves money.