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Data is one of the most valuable assets that a business has. Without it, businesses would find it extremely hard to keep track of anything. There are plenty of people that shy away from data analytics because of it being too “complicated”. The truth is you don’t have to be a mastermind to access or report any of the data you find, the key is simply down to following key metrics. In addition, it’s important to know what data it is you’re looking for and how it affects your business as a whole. Here, we take a look at 3 recruitment metrics that will help you drive your businesses performance.
1. Quality of Hire
There are lots of metrics that go hand in hand with quality of hire. As a business, your main goal is to get the best and brightest talent working for you. However, this is no easy task as who knows what might happen later on down the line to your star candidate. There are a series of factors that could result in your ‘top candidate’ performing poorly. Something such as cultural differences might lead to your top team member to perform poorly, thus you receiving a poor ROI.
Recruiting costs can be expensive, therefore, it’s important that your costs reflect the quality you’re hiring. When it comes to analysing the performance of the potential candidate that you might be hiring, it’s important to take into account the data associated with that person. How did your candidate fare in his previous roles? How long did it take them to get up to speed? With the use of big data and analytics, you can effectively measure how your candidate will perform which result in you hiring a quality candidate.
2. Time of Hire
The time of hire is another important aspect to look at when recruiting. You need to know how long it will take you to fill the vacancy, whilst also studying where there is a bottleneck in your pipeline. Track how long it took to source your candidate and then look at how long it took for your team to react.
Of course, it goes without saying that you don’t simply hire someone for the sake of filling that position. Hire someone that is able for the the task ahead. However, on the other hand, the longer the position is left open, the more money the business is losing.This can ultimately lead to less productive company due to that role not being filled. Important points to look at when filling a job are;
- How long the vacancy was advertised across all platforms.
- When you identified the candidate.
- How long it took for your team to react.
- The average time it took to interview the candidate.
- The time it took to make a decision on that candidate.
- How long it took for the candidate to accept the offer.
3. Cost of Hire
Every business should be tracking their cost of hire and is an important data point within the recruitment process. The costs of hire can vary, depending on what recruitment methods you’re using. Are you using internal or external methods?
External costs of hire: Advertising, consulting services, agency fees and contingency fees.
Internal costs of hire: Costs of recruiting staff, salaries, training and benefits.
Reducing your cost of hire is always going to be your main aim. The more money you save, the more money you have to spend elsewhere. There are usually higher costs for those who choose to go down the external route of hiring, but then again there are pros and cons attached to both. The internal and external costs of hire are completely unique to each business and their circumstance. Work within the budget allocated to your company and track this metric to ensure you see a good return on investment.
What do you think are the most important metrics to be tracked during the recruitment process? Why not share your thoughts in The Social Talent Community.