You probably hear every day that you need more data and measurements to make sure that your hiring process is working as it should. But it can be really tough sometimes to figure out which metrics are the right ones to spend time on. With the unemployment rate today sitting at 3.5%, it’s important to know which metrics will really help you land that next top hire, ahead of your competition.
The talent shortage is a huge concern right now in the current market, and many companies are scrambling to find and hire skilled workers. About 73% of employers are having trouble finding skilled candidates, and I’m guessing since you’re still reading that you may be facing this challenge as well.
Measuring what’s working and what’s not in your recruiting process is a great way to make sure you’re hiring only the best talent for your organization (and also gives you a little something more exciting to take to your next board meeting or managers offsite). But I’m sure you’re wondering which recruiting metrics are the best to track, so here are a few of the top metrics I’ve found:
- Candidate Pipeline: I’m sure you already know that you need a strong candidate pipeline. But do you know what your conversion rate is for candidates that enter the pipeline, where they fall out of your pipeline and lose them or why you win by hiring them? If you don’t understand what’s happening in your candidate pipeline, you really can’t understand which of your recruiting resources are impacting your funnel the most and which tools are not adding any value. You need to understand the impact of the tools you’re using so you can allocate your time and resources in a more efficient way.
- Qualified Candidates: Do you know what a qualified candidate looks like for the role you’re recruiting for today? Any candidates who move past the phone screen or initial interview stage can be deemed a qualified candidate. This metric can also tell you which of your recruiting sources are working for you and which are not. Building scorecards can help you standardize your hiring process and reach more qualified candidates. Join us for our webinar with Jeff Smith at Hirewell Thursday, December 5 to learn more about the benefits of using scorecards to enhance your hiring process.
- Time-to-Hire: This metric will show you the total number of days a job is available and unfilled. An average time-to-hire measurement will look at all unfilled positions over a set time period, typically a year. The average time-to-hire across all industries is about 42 days. Interview software can help you decrease your interviewing time by up to 83%, helping you cut down your overall time-to-hire.
- Offer Acceptance Rate: This metric shows you how many of the offers you make to candidates are accepted. If your offer acceptance rate is below 90%, you should review your candidate experience, as well as the incentives you offer candidates, like salary and benefits, and how they compare to competitors.
- Quality of Hire: This score typically takes into account factors like job performance, productivity, engagement and cultural fit. Your overall or average quality of hire metric can show you whether you need to revamp your company onboarding process or talent acquisition strategy.
- Cost Per Hire: This metric adds up the expenses that go towards recruiting and hiring a new employee, helping you see where you’re spending your money on recruitment tools, where your value is coming from and where you might need to reallocate resources. The average cost per hire for companies is around $4,000.
By now, you know a little more about what to measure to land that next top hire. Get more bang for your buck by tracking these hiring metrics and reallocating your time and resources to the recruiting resources that are working for you.
Interested in reading more about how to bring more qualified candidates to your pipeline? Check out our next blog post to learn which hiring metrics will help you measure the quality of your hiring process.