How Should Recruiters Measure Success?
Have you ever found yourself walking into a quarterly review unsure of what the outcome will be? Rather than leaving your performance review to chance, we’ve outlined some of the key KPIs that every recruiter should measure themselves against. Staying on top of these key performance indicators is a great way to ensure that you stay on track week to week, and know what you’re doing when your review comes around. Phew!
Quality of hire
Quality of hire is a measurable way to understand the value that your new hire has in the business. It’s difficult to measure the value of a hire until they’ve had a chance to make a real impact on the business.
According to LinkedIn, the most common KPI’s related to quality of hire used by companies are:
New hire performance metrics
These are used by over half of companies and include measurements that indicate value added by a new hire. Sales quotas, product units and customer satisfaction ratings can be measured to understand value.
Turnover and retention metrics
Almost half of companies measure the value of their new hire using turnover and retention metrics. These metrics have other factors, however, like an ineffective on boarding process or ineffective management practices.
Hiring manager satisfaction
These ratings are used by 41% of companies. They show how satisfied hiring managers are with the quality of the hiring process and the hire eventually made.
Time to hire
The time of hire is a valuable aspect to consider in recruitment. It’s essential to understand how long it will take to fill a vacancy, whilst also being able to identify 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.
The longer the position is left open, the more money the business is losing. This can ultimately lead to a 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.
Cost of Hire
The costs of each hire can vary, depending on what recruitment methods are used in the process. 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 a business saves, the more money available to spend elsewhere. There are usually higher costs for those who choose to go down the external route of hiring. 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.
Want full access to our online training library to start seeing dramatic improvements in your recruiting? Check out the link to our recruiter academy below!