Recruiting Analytics - Metrics you should track
Measuring the success of your recruitment efforts is not a science; however, there are certain metrics you should track to help assess the effectiveness of your recruiting programs and your overall return on investment.
Maintaining recruitment analytics is the most effective approach as it will help you: 1) determine how long it takes you to fill positions; 2) the costs associated to fill each individual position; and 3) the longer-term assessment of candidates you bring in. By maintaining trackable metrics, you can better assess what works, what practices need improvement and the overall cost to your recruitment budget.
Below we take a look at areas and metrics you should track.
- Outline the cost to source each candidate. This should include cost for each job ad you post or other paid-for recruitment tools you are using. Be detailed and specific.
- Outline the time each posting requires, from the time involved to writing the job posting itself all the way through to submission to job boards and other recruitment vehicles.
- Outline the time needed to screen each candidate. This should include everything involved in responding to each resume. Be as detailed as you can as you will want to determine the average cost per resume.
- Be sure to include any other pre-screening time required for filling positions, such as phone interviews or any other time needed to prepare for bringing in applicants. This can also include time involved in internal meeting with recruitment staff.
- If you are using an applicant tracking system, be sure to itemize this expense.
- When it comes time for the interview process itself, be sure to outline all expenses. This should include the time spent scheduling, conducting and following up on each interview.
- During the interview phase, you will also want to outline how many staff members are required to conduct each interview - both recruiting staff and internal managers.
- Also be sure to include any interview expenses incurred such as parking or other related travel expenses. You should also include other amenities, such as refreshments.
- When it comes to hiring, expenses need to be broken out further. How much time did it take to negotiate per candidate? Were there referral costs that need to be paid out? Are there any relocation costs required?
- During the on-board process, how much time and money is required. This should be broken down in detail and include any training and orientation expenses required, as well as the staff members involved in the on-board process.
- Once a candidate has been hired, what is the average stay of that employee? Do you have an average retention rate of new employees that you can track and measure against? If not, you will want to gather this information as it will further help you measure the success of your process.
The goal of gathering these metrics is to help you track your cost per hire. This may vary by each candidate and fluctuate on a regular basis. But having analytics in place will better help you assess if your recruiting process is working well or if there are areas for improvement.