Monday, August 16, 2010

10 Recruitment Metrics that you should know

What are Recruitment Metrics ? Many of us are aware of few performance measuring tools which we normally use in our organization. We need to fix a bench mark for our performance and always try to excel the same. We need to introspect whether we are above the reference line or below the reference line ? What is there to improve more? How do we make inroads to these improvements ? All these questions gets answered once we have numbers in hand . I mean , we should know to analyse our job and performance by means of some scientifically worked out tools. These tools and their reports will helps us in the short / long run to make an impact on the business goals that we achieve.  All the above questions can be summarized and be called and answered by something called as METRICS. As a recruiter , you need to understand the following basic Recruitment metrics to enable you to work towards the big picture of the organisation

The proper selection of recruiting metrics is a critical step in understanding how you are doing with the hiring
process. Combined with clear strategies, processes, incentives, technologies, structures, and skills, these
recruiting metrics should help ensure that you are attracting and acquiring the top talent that you need to gain a
competitive advantage.

All of you might have heard of COST PER HIRE . We will be able to derive few more metrics for our use. You need to have basic math skills and should know what it all means. I will try to make it very simple for you so that you can remember it . In our discussion we will categorize these metrics into 3 major sub divisions namely : 

A. Cost  ( Money) B. Quality C. Time ( TQM -- Time Quality Money)
Now we shall explore the above 3 categories one by one :
A. Cost ( Money)  :
1. Cost Per Hire : It is the cost incurred during your entire recruitment process during a specific time period divided by number of positions filled in that given period. 
B. Quality :
2. Quality of Hire : QoH is the measurement approach to overall strategy of Talent Management Startegy of a company . Much research is being done in this area. We can customise the parameters to our own way and come out with a formula. Some of the parameters that I used are as follows : 
   a. Average job performance rating of new hires in a particular time duration 
   b. % of new hires reaching the agreed productivity in the given period of time 
   c. % of new hires who were retained after 1 year of their service 
   So we have 3 indicators here to measure . So your QoH will be a+b+c / 3 
3. Acceptance Rate :  We can consider this metric to plan ourselves to how many offers need to be released in order to fill one position and how many accept the offer . Say we released 5 offers , how many accept the offer and how many reject the offer ? So it is the % of candidates who accept the offer versus number of offers released. 
4. Turnover of new hires % : How many new hires quit within the given duration as compared to the standard average tenure. This is a very nice study and we can really understand the problems or issues in a particular team or an organisation as whole. In other words , we as recruiters can introspect where was the mismatch in hiring these candidates ? 
5. Referral Rate % : Referral hire normally happens when the serving employees are happy and they also want their friends, ex-colleagues or their relatives to be happy working for a good company like theirs. If you see that the employees refer in big numbers , understand that they are happy to work for the hiring manager / the organisation as a whole. It is a healthy sign for the company. 
6. Manager Satisfaction : This is basically the % of key managers satisfied with the recruitment process, the time to fill and the candidates . you can review the survey results among managers to determine level of satisfaction with the job performance and competencies possessed by new hires.
7. Offer acceptance to On-boarding : You should know this to understand the trend . How many candidates accepted the offer and how many really made it on the joining date . In other words, NO SHOW percentage . 
8. Hires from top schools % - How many of your new hires were from top B-schools or from Top educational institutions of your country. It directly tells the quality of hire. 
9. Time to fill : It is the duration of the time between the Job posting date to the offer acceptance date. You can compare this metric with the standard service level agreements that is signed between the recruitment department and the hiring department. It would be great if you can have a diary and track the cause of the delays happened and work out probable solution to avoid these delays in future.
10. Start date met % : How many hires were on boarded on the said date as designated by the hiring manger. It is very very important number to measure the efficiency of the recruiters and the team responsible to close the position.
We can be more innovative in dealing with this subject. I will discuss more metrics in my next blog. YOu can also share with me , if you know more metrics and that you deal with in your organisation.

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