Recruiting metrics are a set of measurements used by businesses to improve the efficiency and effectiveness of their hiring process. These metrics provide valuable insights into the performance of different recruitment functions and help companies to allocate resources more effectively. In this article, we will explore six of the most common recruiting metrics, including the source of hire, time to fill, time to hire, time in a process step, cost per hire, and quality of hire.
Explore 6 Most Common Recruiting Metrics
Source of Hire
Source of hire is a metric that measures the proportion of hires that come from different recruiting channels. These channels could be job boards, referrals, recruiters, social media, career fairs, and more. The data obtained from an applicant tracking system (ATS) can help businesses to identify the most productive channels and allocate resources accordingly. For instance, if a large percentage of hires come from referrals, and the company does not have a formal referral program in place, it might be worth considering establishing one.
Time to Hire
Time to hire is a metric that measures the time it takes to move a candidate through the hiring process, from the point when they apply for a job to the point when they accept a job offer. It is a narrower metric than time to fill, as it only focuses on the hiring process and not the sourcing process. Time to hire is an important metric as it measures the efficiency of the team in identifying and advancing qualified talent.
Time to Fill
Time to fill is a metric that measures the duration between the approval of a job requisition and the acceptance of a job offer by a candidate. It is a crucial metric because it provides an indication of the efficiency of the recruiting process. On average, time to fill a job is 41 days, but this can vary greatly across industries, with some organizations filling certain positions on the same day they become available. AI tools in the ATS can help to improve the time to fill metric by setting and meeting time-to-fill benchmarks for the company.
Time in Process Step
Time in process step is a metric that breaks down the time to hire by the duration a job seeker spends in each step of the hiring process. This could include resume screening, submissions to the hiring manager, and interviews. The time in process step metric helps to identify bottlenecks in the hiring process and reduce the time to hire. Talent acquisition software and AI-enabled capabilities in the ATS can help to alleviate some of these bottlenecks.
Cost per Hire
Cost per hire is a metric that measures the cost-effectiveness of the recruiting process. This information can be used to guide the recruiting budget. To calculate cost per hire, the sum of all internal and external recruiting costs is divided by the number of hires in a specific time period. Examples of internal costs include employee referral bonuses and payment for recruiters and hiring managers. External costs include advertising fees, recruiting event costs, and technology costs. The average cost per hire across all industries is $4,129, according to the Society of Human Resources Management (SHRM).
Quality of Hire
Quality of hire is a metric that measures the first-year performance of a new hire. This metric is crucial because it provides an indication of whether a new hire is a “bad hire” and is likely to cost the organization tens of thousands of dollars in direct and indirect costs. Quality of hire is also an input for another metric, known as the success ratio, which is calculated by dividing the number of high-performing hires by the total number of candidates hired. Industry best practices suggest that a success ratio of 75% is a good benchmark, but this can vary based on the industry and company culture.
Which Tools Report on these Metrics?
The go-to solution for tracking recruiting metrics is the Applicant Tracking System (ATS). With the right analytics capabilities, an ATS can help you keep tabs on your hiring progress and provide you with insightful reports at every stage of the process. In fact, a study by Capterra found that 94% of businesses using an ATS have seen improvements in their hiring processes.
HireME is a recruitment management system or applicant tracking system that offers insights into your recruitment metrics to help you make better decisions.
Recruiting metrics play a crucial role in the success of any hiring process. By providing valuable insights into various recruitment functions, these metrics help businesses to allocate resources effectively and improve the efficiency and effectiveness of their hiring process. The common recruiting metrics discussed in this article are all essential in tracking the performance of the recruiting process. By using applicant tracking systems (ATS) and other talent acquisition tools, businesses can analyze and interpret these metrics to make informed decisions and optimize their hiring process. Ultimately, the use of recruiting metrics ensures that businesses can attract, identify, and retain the right talent, leading to improved performance and success.
If you’re looking for a solution, check out HireME, an Applicant Tracking System. With robust recruiting analytics, you can get a clear picture of your recruiting process and make informed decisions. So why wait? Start tracking your metrics today!