November 16, 2021
November 19, 2021
Guest blog by Thomas Forstner, Head of People & Talent at Juro.
76% of hiring managers agree that attracting high-quality candidates is their biggest challenge, according to Aptitude Research.
Whilst there are plenty of metrics recruiting teams can track when looking to capture the best talent for their business, some are more important than others, and it all falls down to what your business renders success and health to look like in terms of recruitment.
For growing businesses, it can be tough to know which metrics to prioritize and which to put on the back burner. Here is a list of seven recruiting metrics that ought to be at the top of your list in 2022, regardless of what direction your business is heading in.
Hires per month, or headcount growth, are two of the most universal metrics for recruitment teams to track. Hires per month tracks how many people you are hiring on a monthly basis and headcount growth is a figure you aspire to over a longer period of time.
For businesses that plan to hire consistently and expand, both metrics can be a core indicator of how successful this has been.
These growth targets need to be realistic and account for the size and capacity of your hiring team, as well as market trends and the nature of the roles. For instance, it can be unrealistic for a business to hire someone for a managerial position on a regular basis, but far more realistic to hire.
A common mistake made when setting recruitment metrics is being too objective about your time to hire targets, when different levels and types of roles require unique timelines. For example, Glassdoor’s study found that whilst the average hiring time for a waiter was 8 days, the average hiring time for a highly skilled professional was 60 days.
Given that each hire has unique circumstances, it can be too broad to measure average time to hire as a metric alone. Instead, try measuring the average interview time rather than the time between the date the position was advertised to the date an offer was accepted.
This means you should measure the time an individual spends interviewing with your company, which spans from when their application is received to when they have their initial interview. This metric will be indicative of both the candidate’s interview experience and your overall time to hire, without the need to sacrifice candidate quality for the sake of speed.
As well as tracking how many people you hire and how quickly, it’s important to track how much each hire costs the business, and how efficient your recruitment processes are.
To calculate your cost per hire, look at things like how much is being paid to agencies, how much you spent for memberships in certain networks and how much you’re being charged for job board listings, as well as the salary of your recruitment team. Some businesses will even factor the costs associated with relocations and visas into this cost.
Hiring candidates that don’t stick around can be a drain on company time and resources, so it’s surprising how few businesses consider the performance of candidates post-hire as a measure of effective recruitment.
In fact, it’s estimated that almost one in five employees fail their probation period or have it extended. By measuring the percentage of probations passed, you can quickly identify whether you’re hiring the right candidates, in terms of both quality and cultural fit.
Of course, the number of probations passed is also about successful onboarding and enabling your team to do excellent work, but it is equally about the candidate’s potential and motivation, to begin with.
If a concerning number of candidates are failing their probation, it’s likely that the candidates have been poorly selected, or that the expectations you have for candidates fail to align with their abilities.
This can be a sign that you need to be clearer about your expectations of candidates before hiring them, or that you could benefit from more extensive and rigorous recruiting processes in place to better predict a candidate’s success.
Although, this metric can prove controversial amongst talent professionals since many talent professionals deem managers and individual employees to be most responsible for the success of their probation period.
How do you know if you’re attracting the right candidates through your marketing? Try to evaluate where the candidates you’re actually hiring come from, and how they find you.
By tracking the number and proportion of your hires that have been inbound, you can get a taste for whether you’re reaching the right talent with your job adverts, or whether you’re spending too much time and resources trying to reach out to successful candidates yourself.
If you find that the vast majority of your hires are reached through outbound efforts, it’s possible that your target audience isn’t reaching your job adverts, or they simply aren’t converting if they do.
To reduce the time and money you spend sourcing candidates through outbound, measure the percentage of inbound hires you have coming into your team, and find ways to increase this figure if necessary. After all, the number of inbound hires you have is a true reflection of your employer brand.
A realistic target would be between 30% to 40% of your hires coming from inbound, or 50% if you are counting referrals as a source of inbound too.
The number of candidates that accept or reject an offer for a role is significant, too. Firstly, for obvious reasons. Your business wants to secure the best candidate in the process, and an offer acceptance rate reflects how often this is achieved and not.
However, you should consider your offer acceptance rate metric to be a sign of other factors as well. For example, if your offer acceptance rate is low, it could be a sign that you’re delivering a substandard hiring experience, that your offer letter isn’t appealing enough, or that you’re taking too long to progress candidates through the hiring process.
That said, it is often unrealistic to aspire to a perfect offer acceptance rate. If you are achieving this, you may not be being ambitious enough or focused enough on who you’re hiring. Generally speaking, 75% to 85% is a good acceptance rate to aim for.
When deciding which recruitment metrics to track, it pays to be strategic.
Whilst it can be tempting to try and track every recruitment metric under the sun, it’s important to recognize which metrics only provide limited value or information.
Instead, prioritize the recruitment metrics that best align with your overarching goals as a business, and keep the others on the backburner until you need to dig deeper into specific issues.