Don’t Make a Recruiting Move without Having these Numbers in Mind
Fifty-five percent of HR teams feel extremely or very challenged in their search for high-quality talent. Finding the best person for the job has always been something of a challenge in the recruiting world, but it’s never been more difficult than it is in this new economy. The main complicating factor is the fact that unemployment numbers are historically low (as of early 2018) and there just aren’t as many job-hungry candidates as there used to be.
Ten years ago, there was a glut of applicants for almost every position. Depending on the role, it wasn’t uncommon to receive hundreds of résumés per position. Today is a completely different story, and recruiters have to really hustle (even more so than usual) to find the perfect candidate for the job. Of course, evolving to a data-driven team can take time. And, we all have our day jobs to contend with after all, but understanding which Key Performance Indicators (KPIs) are important and why is the first step on the path to recruiting excellence.
Big Data Is Everywhere
Including in recruiting, and it needs to be harnessed in order to help ensure you select the right employee for the job. It’s important to make data-driven hiring decisions. But how? Having a grasp of certain metrics can make the recruiting process easier and more effective. But, you need to dive deeper than just keeping a dashboard and a spreadsheet of how many résumés you’ve received or how many phone and in-person interviews you’ve conducted.
An International Public Management Association for Human Resources (IPMA-HR) survey indicates that more than two‐thirds of respondents collect HR metrics (69%), which is good news. Here are several KPIs that are 100% necessary to keep track of.
KPI #1: Offer Acceptance Rate
This metric will likely never hit 100%, but by tracking job acceptances over time you can see just how effective your talent acquisition strategies are. If your offer acceptance rate is low or on a downward trend, you need to make sure that your salaries and benefits are industry and location standard. This is the most important metric to have because the percentage of offers accepted is used to demonstrate the effectiveness of your company’s overall recruitment strategies.
KPI #2: Candidate Sourcing
This is an important metric for making decisions regarding your recruiting strategy and will inform several data points. Use this metric to determine how much and where to spend your recruitment budget (e.g., job fairs, on-campus recruiting, job boards); to determine recruiting hour allotment to recruitment resources, such as events; and to help determine recruiter performance.
KPI #3: Average Time to Fill
This metric is all about tracking the speed in which a candidate moves through your hiring pipeline once they’ve been recruited or have applied. Time to fill is pretty self-explanatory. It adds up the total number of days an open job goes unfilled. However, it can provide some telling information about how long recruiters take to contact a candidate after one is identified, as well as how long it takes to schedule an interview.
KPI #4: Current Candidate Pipeline
This metric is important for understanding which stage of the hiring process each candidate is in, as well as how many candidates are in each stage. It can answer several questions, such as: How many candidates in the interview state (i.e., “good” candidates) do you currently have? How many offers are outstanding? Which candidates will you close soon?
KPI #5: Reasons for Non-Selection
Keeping track of why a candidate wasn’t hired is important as well. Some reasons to include: Doesn’t meet qualifications (e.g., didn’t meet education or experience requirements, failed drug and/or background check); Candidate withdrew; Company not interested (e.g., the candidate had a poor interview, other candidates had more experience, bad references); and, Candidate declined offer. While not required, having this data can help with EEOC compliance in the event of discrimination litigation.
If you’re in search of more inspiration or best practices to take your recruiting process to the next level, check out a complete list of resources in the HR Center of Excellence Recruiting Hub.