In a data-driven world, the ability of staffing firms to understand and track the key metrics that improve the hiring process is crucial for generating better engagements for clients. With employees as a top source of value to many organizations and typically a large investment, making the decision to put the right employee in the right role is an important factor influencing the success of the organization. There are many recruitment metrics and target numbers that can help achieve this.
Below we explore the top metrics that maximize a high return on talent, emphasizing the increasing role of data to help find the best talent solutions.
What are the recruitment metrics that matter?
In a constantly evolving landscape where businesses are balancing rapid technological change, economic downturns and shifting working models, these are the top metrics that staffing firms focus on to improve the hiring process and maximize efficiency and ROI:
- Time to Hire – this recruitment metric measures the time from when a candidate applies for a job to when they accept the job offer. This metric matters because it clearly indicates the efficiency of your hiring process, which influences candidate performance and overall productivity. Usually, the shorter the time to hire, the better performance from the candidate and the business.
- Retention Rate measures the percentage of employees that stay at an organization for a certain amount of time. This metric matters because it reflects the ability of the organization to maintain a steady workforce which helps with forecasting for an extended period. High retention rates usually mean engaged, positive, and committed employees.
- Turnover Rate measures the percentage of employees who leave the organization during a certain amount of time, either voluntarily or involuntarily. This matters because a high turnover rate is costly to an organization, especially if it causes a disruption in the business at a crucial time in terms of productivity, lost time, and costs to recruit and hire replacements. Sometimes the reasons for a higher turnover rate are uncontrollable, so it is best to track this metric in close conjunction with other metrics, such as retention rate.
- Quality of Hire – this recruitment metric measures the value a candidate brings to an organization. This metric matters because it reflects how the candidate and organization impact culture, productivity, experience, and commitment. A good quality of hire can make a positive impact on an organization’s long-term success.
- Cost per Hire measures the total cost for hiring a new employee. Primarily businesses aim to optimize this metric for cost savings. However, this metric often fluctuates based on economic and market conditions. Keeping a close eye on this metric and trying to find ways to streamline your recruitment process to help keep this metric low can be beneficial for when it changes due to uncontrollable factors.
- Applicants per Role – this recruitment metric measures the average number of applicants for each job opening. This metric matters because it implies the level of popularity and competitiveness of the position, sometimes indicating that the job and/or organization is attractive. However, a high applicants per role outcome can also mean that your job is attracting too broad of an audience, who may not be all qualified for the position.
Why rely on metrics & data for an improved hiring process?
As the nature of the labor landscape shifts to include artificial intelligence and automation, many HR managers expect their recruitment processes to shift as well. The increased development and use of recruitment technologies, specifically AI, means managers and recruiters will depend more on analytics and data to make their hiring decisions.
Tools such as AI screening systems, interview automation platforms, and predictive analytics are just a few of the technologies that are changing the recruitment world. Data-driven decisions generated from these developing technologies are helping recruiters and businesses refine their processes to minimize the cost to hire and make the recruitment process as efficient as possible.
Organizations that integrate automation and tracking of these key information metrics benefit from better outcomes in productivity and quality of hires. Additionally, incorporating this type of strategy will help your business build a strong recruitment process that helps drive success in the long-term without having to raise costs, giving your business a competitive advantage and increasing your employee satisfaction and commitment.
