John Sullivan, a recognized Human Resource Advisor from Silicon Valley and Professor of Management at San Francisco State University, analyzed the recruitment strategies of five of the world's highest market value companies (Apple, Google, Microsoft, Amazon and Facebook).
He found that these companies are innovation leaders because they recruit people based on the results of data measuring. They aren't limited to measuring the value new employees bring to the company (quality of hire), or how long it takes to hire employees for a particular job (time to fill).
John Sullivan highlighted the following recruitment KPIs which give the leading companies a major competitive advantage.
1. The parts of your job application process that discourage applicants
A complex and time-consuming process of applying for a job discourages nine out of ten qualified applicants. The time applicants need to fill in and send job applications shouldn't exceed five minutes.
Most often, job applicants are discouraged by technical problems, such as being unable to attach a CV, being unable to monitor the status of their application or when the application can't be filled in on mobile devices.
2. The cost of long-term vacancies
Do you know how much money you're losing every day? Calculate the costs for all positions and show the resulting data to your top management. There's no easier way to get more funds and support for recruiting key people.
3. The selection criteria for the best candidates
What is the predictive value of the criteria you apply when selecting employees? Google, for example, found out by comparing internal data that factors such as education, test results, or brain teasers don't predict anything about future employee performance.
4. The reasons why new workers leave
You probably know the amount of costs associated with fluctuation in your company. But do you know why fluctuation occurs?
For example, data show that one of the major reasons is the frustration new workers experience caused by not achieving productivity as fast as they imagined. If this is the case, you should improve onboarding.
Focus on measuring what types of employees tend to leave, who should be promoted, how you should improve manager performance, collaboration and innovation.
5. The difference in the performance of top performers and innovators
Compare performance in positions that can be measured in money. According to Steve Jobs, innovators were 25 times higher performing, while Google even talks about a 300-fold difference. When top managers see this, you can expect more investment in recruiting for those who will bring the greatest value.
6. The strength of your employer brand
Most companies, according to Sullivan, are measuring the wrong indicators, such as the number of fans on social networks or positions in search engine listings. These criteria are not relevant for recruiting.
If you want to measure the recruitment results generated by your employer's brand, measure the number of job applications per year and compare individual year.
7. The efficiency of your recruitment process
Do you know which parts of your recruitment process your recruiters should spend more time on? It might be the forecasting phase, but it could also be in communicating with managers. Perhaps they need more accountability.
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