Written by Kimberley Startup | April 30, 2014
Without measuring metrics around your recruitment activity it’s difficult to know if your staff recruitment is a great success or failing to live up to your overall objectives.
There are many metrics than can be tracked but what is important for any HR professional is knowing which metrics are really worth using – those that will help you to see the best return.
To get your team started, Webrecruit has compiled its top 6 recruitment metrics to help you or benchmark your current KPIs.
A recent report from Oxford Economics highlighted that replacing an employee incurs costs as high as £30,614 for businesses.
Each time you hire within your business, make sure that you track every penny spent. From the time it takes to compile a job advert to deciding which advertising source, right through to filtering the response and negotiating – there are multiple factors (both financial and man-hours) that will incur a cost.
So when calculating your cost-per-hire, remember not just to include the cost of advertising the role and any external agency fees, but also the cost of time spent during interviews and managing the process.
The time period from the moment you need to recruit until the moment the new employee begins is a crucial metric for your staff recruitment.
This metric will help you to highlight any weaknesses in your process. Also, within this metric ensure to break down your time-to-hire by stages, such as: interview to offer, offer to acceptance and so on. Knowing the time spent on each stage will provide you with an understanding of where to look when tightening up your internal processes.
3. Application Analytics – Source
Do you know where your good candidates come from?
As any savvy HR professional knows, it is important to cast a wide net and advertise your recruitment via multiple channels. However, without monitoring your source of applications, how can you know which is your most successful platform?
This metric is key to reducing the cost of your staff recruitment because a review of your chosen channels will allow you to easily identify and remove ineffective or underperforming methods.
4. Agency usage
As a busy HR professional, opting to use an external agency is always going to be tempting. This means confidently knowing the percentage of your staff recruitment that is handled via an agency is highly important.
Traditional recruitment agencies can be costly; therefore, knowing this metric will allow you to forecast how much this usage is likely to cost you going forward.
5. Retention rates
Feel like you are often recruiting for the same role? Knowing how your business performs when looking at retention rates can help to drive down the need to recruit in the first place.
Break down your retention rates by areas such as salary banding and department; this will aid you to identify any recurring trends and allow you to change them.
6. Use of talent pool
Your source of application metric will help you to identify how often you have successfully recruited a candidate directly from your own talent pool. If it is high, then that’s great news. But do you know how often you are actively replenishing it?
Equally, if your source of application is rarely from your own talent pool – ask yourself why not? Is it lacking in candidates from certain sectors? Running counts on the records within your talent pool will help you to keep ahead with your staff recruitment by knowing who you need to reach out to prior launching a recruitment campaign.
Webrecruit works with HR professionals looking to bring their recruitment in-house by focusing on the metrics that matter. Find out about our managed recruitment process.