Measuring success is an important part of recruitment. Recruiters should, however, not invest more time evaluating than in actual recruiting. Because the internet is full of various instructions on what to measure, the Recruitloop.com website has decided to summarize the metrics that make real sense, no matter the size of your company. Let's describe the metrics and reflect on your experience (or inexperience) with them.
1. The time to fill one position (Time to hire)
This is the time from the publication of a job advertisement to the moment when a successful candidate actually joins your company. You can compare the length of time this takes among different positions and look for ways to reduce it. Talent management processes can help you.
2. Channel
You probably do not use only one recruitment channel. Therefore, it is useful to compare the individual channels with respect to the specific types of positions. It will help you identify the most effective channels and get rid of the ineffective.
3. The cost of filling one position (Cost of hire)
You need to be careful to include all costs in this measurement. The cost of the recruiters' labor or advertising are a matter of course, but you should also be aware of the cost of time of involved for managers and other administrative staff who process employment contracts, benefits, etc.
4. Retention
Watch how much early leaving employees cost in various positions, not only in terms of recruiting someone new, but also in terms of lost productivity in teams or the cost of training of new recruits. The cost of losing an employee can be equal to three or four times their salaries.
5. Open vacancies vs. filled vacancies ratio
Larger organizations should watch this metric in close connection with "time to hire", ideally every month or quarter. Quality recruitment management should have a low ratio of open positions.
6. Accepted offers ratio
A candidate who rejects your offer costs you not only time and money, but also the recruiters' morale. Watch how many offers you have to give to fill a specific position. Again, this metric is closely related to "time to hire".
7. Gender balance
Connect recruitment with your company's diversity strategy. Much research has confirmed that diversity in teams helps innovation and improves companies' profits. Try to monitor the gender balance in different positions and on different levels of management.
How many of these metrics do you use? Do you use any others?
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