Recruitment metrics plays an important in measuring the success of your hiring plan. Often these metrics gives you a idea of the recruitment strategies which are working and provides an opportunity to revisit the ones which are not helping your organisation to scale up. Here is a look of top 5 Recruitment metrics for your organisation.
- Cost Per Hire
This metric is summation of all the expenses incurred for hiring a new employee. This includes advertising, internal salaries, external commissions and other related costs. It is one of the important metric to find the best method for your recruitment strategies. For e.g.: You are spending huge amounts on paper ads whereas most of your qualified candidates are coming from internal references and Job Boards. Breaking this cost would help you to reduce unnecessary costs and optimize your resources.
Cost per Hire formula:
Cost per Hire (Rs) = [Total External Costs] + [Total Internal Costs] / Total Number of Hires
- Time to Fill
Time to Fill metric gives a measure of your operational efficiency and holds a mirror to your talent acquisition strategy.
Time to fill metric is the total number of days an open jobs goes unfilled. The days are calculated from the time Job was open and ends on the day the position is closed. This gives you a idea of total recruitment funnel, candidates contacted, scheduling interviews and the pipeline of talent and resources at your disposal. Breaking down your total time to fill will help identify areas for improvement to optimize your recruitment cylce
Time to Fill formula:
Time to Fill = Total Number of Days Job Is Available and Unfilled
- Qualified Candidates
A candidate who is considered to be a good fit for a position after the initial contact (phone interview) can be classified a qualified candidate. Once you mak offers to them you can measure the number of qualified candidates to the people who accept your
This recruitment metric provides a strong indicator of how close your team is to achieving their hiring goal for a given period. Measuring qualified candidates can even help you predict your ability to achieve hiring goals down the road–something your company’s senior leaders will be eager to see.
Calculating Qualified Candidates:
Qualified Candidates = Total Candidates Per Opening Who Move Past the first screening stage
- Offer Acceptance Rate
This recruitment metric compares the ratio of offers given to that of the offers accepted. These rates would never be 100% but gives you a great insight in terms of 1) Your Salaries and Other Perks 2) Your Competitiveness etc.. Offer acceptance rates rarely hit 100% but gives you insight about your recruitment strategies
Offer Acceptance Rate formula:
Offer-to-Acceptance Ratio = Number of Offers / Number of Acceptances
Hires to Goal formula:
Hires to Goal = Total New Hires / Hiring Goal
- Retention Rates
Your retention rate tracks the total employees who stay with your firm over a given time period, out of the total number of employees you had when that period began.
If too many people are leaving in a specific period of time, you may need to evaluate your recruitment methods, your salary perks, the culture, the growth opportunities and your appraisal methods.
Retention Rate formula:
Retention Rate (%) = (Total Employees Still Employed at End of Period / Total Employees at Start of Period) x 100