Measuring your recruiting method is a full proof way to check if you are going in the right direction. As a recruiter you would have tried multiple techniques to hire employees. All techniques don’t always work because they might not be fine-tuned. Using metrics to measure efficiency and quality of your recruiting process eliminates errors while helping you develop different strategies. Always use three to four metrics to determine the success rate.
Here are a few effective metrics you can use to evaluate your recruiting process:
1. Number of qualified candidates per opening:
Qualified candidates are those who are selected for the interview round after skimming through hundreds of applications. Higher the number, better is your recruiting process. You can also use this number to set a benchmark for future hiring. For instance, for hiring a software engineer, you got five qualified candidates, keep it a benchmark for hiring employees for other jobs like manager and marketing head.
2. Retention success rate:
To calculate the retention success rate divide the number of people employed for a fixed period of time by the employee strength at the start of that period and multiply the result by 100. A high retention percentage shows you are finding employees that stay for longer periods. It is vital for the success of your company. Calculate the retention rate for every specific role because every recruitment technique doesn’t always work for every role.
3. Days taken to offer the job:
Time is an extremely crucial factor in deciding the success of your recruitment protocol. If you take less number of days between receiving an application and accepting or rejecting it, you are doing great. It also reflects the punctuality you bring into the system. A shorter recruitment process saves money and energy. For a startup, this duration will be shorter as compared to an enterprise as the latter involves multiple levels of interview.
4. Number of hires-to-goal:
Hires-to-goal is the number of employees a company needs to hire for reaching their pre-determined monthly, quarterly, or annual goals. Every employee you hire should take you closer to the set goals. All the other metrics you used might support your recruitment process but if this one doesn’t, there is something clearly wrong with it. The hire-to-goals differs from profession to profession but what matters most is the employee’s efficiency and capacity to work.
5. Offer acceptance rate:
It isn’t always that a recruit might agree with your offer. Candidates often let go of an offer owing to the pay being offered. If this has happened often with you during the recruitment process, it means you don’t have a good offer acceptance rate. Either you are finding individuals who are too qualified for the post or your company isn’t paying well enough. Any which ways, you need to find out the error immediately and rectify it.
There is always a room for improvement in every recruitment process. In the end, all you have to keep in mind is that, the process is very efficient and consumes least amount of resources.