HR teams benefit from actively monitoring a number of recruitment reporting metrics. Key factors such as time to hire, the number of applicants per job, and job offer acceptance rate, illuminate the areas in which HR teams are succeeding in their talent acquisition efforts, and suggest areas for improvement and optimisation. In this article we take an overview of the eight key metrics we believe are essential to include when composing HR reports for management, and analysing performance.
Time to hire: How long does your talent acquisition process take, from first identifying the need, to sourcing talent, screening candidates, interviewing applicants, performing background checks, and onboarding successful new hires? Understanding time to hire gives you a good general snapshot of the performance of your HR team and how successfully you’re marketing your positions to prospective candidates.
Cost per hire: With HR costs accounting for 30% or more of a business’s expenditure, cost per hire is an essential metric, especially when undergoing growth or when recruiting for core positions. Various factors affect the costs of recruitment, and there are several strategies that can be adopted to improve HR efficiency and save time and money. These include implementing modern ATS software, to increasing automation of manual tasks, and reducing agency spend. Have a chat with one of our recruitment specialists today to discuss a bespoke solution that fits with your budget and ROI goals.
Funnel conversion rates: The talent acquisition process follows a funnel or journey, in which candidates are successively nurtured through talent screening, interview, offer acceptance, and onwards to recruitment and onboarding. The funnel conversion rate shows the number of candidates that progress from one stage to the next, given as a percentage – e.g. 30% of shortlisted candidates called to interview, and 2% given an offer of employment.
Source of hire: Tracking the source of hire, or where your successful applicants first heard about your position (e.g. paid job advert, social media, company website, word-of-mouth, referral by current employee etc), is a good way of monitoring your recruitment costs and determining your ROI from acquisition spend. This lets you choose the most effective talent acquisition sources that provide the best value for money and highest candidate numbers.
Applicants per job: The applicants per job shows the market demand for these positions and lets you make intelligent decisions about your recruitment strategy on a role by role basis. Jobs with a high number of applicants may be easier to fill but are more resource-intensive during the screening and interview process, while positions with a lower number of applicants per job could indicate a skills shortage in the market, and require a more targeted advertising strategy to attract the right talent.
Candidate experience: Candidate experience indicates the general level of expertise, qualifications, and years in practice of your average job applicant. The higher this metric, the more likely it is you will find a skilled and experienced recruit for your position, but your remuneration strategy should be set accordingly.
Offer acceptance rate: A high offer acceptance rate indicates successful marketing of the job role to the right candidate base, and that you have successfully sold the benefits of the position and the company’s brand identity at interview. A low offer acceptance rate may suggest the opposite – and provide suggested areas of improvement.
Application completion rate: How many candidates who begin the application process see it through to a successful conclusion? A low completion rate could indicate an inefficient, lengthy, or overly complex application process, and provide a chance to focus on the core competencies you need to screen talent.