Recruiting practices are becoming more complex to HR managers nowadays. Therefore, any data-driven recruitment and hiring need to include recruiting metrics to measure recruitment performance. This is one of the HR strategies that has proven successful in many organizations. That is why this guide elaborates more about recruitment metrics so that you can understand how it works before implementing it in your organization.  

A Complete Guide to Recruiting Metrics

The hiring process can be high in cost and take up company resources. There are specific steps that an organization can take to optimize their hiring process. One excellent option is to make use of corporate recruiting metrics to narrow the search for the best candidates. By definition, recruiting metrics can offer insights that quantify the effectiveness of the recruiting process for an organization. Metrics allow for the hiring process to be much more data-driven for better decision making. Hiring metrics allow for assessments to be done, based on critical attributes that potential candidates are supposed to have.

Types of Recruiting Metrics

Recruiting metrics should be used as a decision-making tool. This is because, with the right candidate in place, any organization will enjoy a massive return on investment. Here are some of the data you can expect from recruitment metrics.

1. Time to fill – This calculates the first step of recruitment, which is the time to find a new candidate for hiring them.
2. Time to hire – This calculates how long the hiring process is, from approaching a potential candidate to giving the final employment contract.
3. Cost per hire – A calculation of the total cost of recruitment for each individual. This focuses on all expenses, including the charges from recruiters, interviews, and working hours during the process.
4. Conversion rates – This metric gives an idea of how many people are given offers, and how many choose to take up their job offers.
5. Business outcomes – Evaluating the results that applicants have delivered while holding other positions. This helps in the identification of high performers.
6. Quality of hire – This metric can be used once an individual is hired, seeking to measure their performance over a defined period. This allows recruiters to measure success following the recruitment process.
7. Job satisfaction – This metric is vital for recruiters who are seeking staff repeatedly for the same clients. It indicates whether previous hires have job satisfaction, with positions meeting expectations. Reports revealing low job satisfaction can be used to improve company processes and strengthen the organization for the better.

How are recruitment metrics calculated?

Metrics allow an organization to understand what is working or where improvement may be necessary for the recruitment process. Metrics are calculated using percentages as these are easy to interpret. Here is an example of a standard recruiting metric to track potential candidates. Source of hire – This provides the recruiter with information on where candidates heard of the available position. Options that may appear in the results include employee referrals, job boards, internal adverts, and more. It may be written as follows: - 40% - Job board 25% - Internal advert 22% - Employee referral 13% - Recruitment Agency  When you choose to optimize your recruiting metrics, managing budgets, and making sound decisions becomes much more manageable. Focusing on the metrics that offer the highest opportunities will shorten the recruitment process. Also, it will lead to the best results for long term benefits to the organization.