Recruiting

The Six Recruitment KPIs your business needs for success

As a business, to measure success, you need performance indicators. And in regards to your recruitment strategy and hiring process, you'll never know how good it is unless you test it.

When you analyze your hiring process and your HR professionals' work, it can help identify issues. As a result, the data you accumulate can help to streamline and improve recruiting and prevent a failure of strategy. So, having the proper recruitment KPIs is invaluable to your HR teams achieving success.

Therefore, in this article, we will be delving into what recruitment KPIs you can implement to measure hiring success in your organization. We will explore:

  • What is a Recruitment KPI?
  • How KPIs can help your HR professionals improve your recruiting and onboarding process. Including time-to-hire and turnover rate.
  • We will explore how these KPIs can impact your business. And help you understand whether your recruitment process is firing or needs a rework.


What KPIs your recruitment teams should be focussing on

Your choice of recruitment KPIs depends on your business objectives. Whether you seek to improve the sourcing of candidates, the efficiency of your recruitment process, the time it takes to hire, or the candidate experience, here are some fantastic KPIs for you to get started.


Cost-per-hire

Cost-per-hire looks at how much it costs to fill a vacancy within your organization. For example, by considering all potential recruitment costs, from advertising the role, the time to identify the right candidate, onboarding a new employee, and the equipment they may require.

It helps you see what you can afford to spend on a new hire. Then, with a broader view of your recruitment overheads and overall HR budget, you can be smart, prevent frivolous spending and reduce costs when you can.

So, you have enough in your budget for when significant hiring expansions need to occur. If, for example, important figures within the organization need replacing, you ensure you have the financial capacity to hire the right person for the job. 


Source Quality

Your HR teams may have to utilize various job sites, recruitment agencies, LinkedIn, social media or referrals, all to find just one new employee.

It's a convoluted system and can cause much delay, especially if you are advertising in a place where you aren't getting the right candidate's attention. So, it is crucial to find the best source for yielding the candidates with the requisite skills to improve your business.

When you know the most effective sourcing channel and compare the number of high-quality candidates coming from each potential source, you can ensure you focus on these when you begin the recruitment process. In addition, source quality enables your HR teams to know where to spend their time and resources building a reliable pipeline of great talent.


Time-to-hire

Time-to-hire refers to the number of days it takes from when a candidate enters the recruitment funnel to being shortlisted, interviewed and finally, the chosen individual accepts the job offer.

It can highlight how efficient your recruitment process is in getting new hires through the door. And help your HR teams to identify what components of the process may be slowing it down or causing your best candidates to move onto other opportunities because of a lack of progress, news or even engagement. 

A speedy time-to-hire can help you reduce recruitment costs long term and is beneficial for planning and hiring to a specific timeline. 

For example, if you've received permission to commence a large project and need additional employees. In that case, you can align your hiring process with this project as you know how long recruitment will take and give you enough time to properly onboard and provide the necessary training to your new hire.


Number of qualified candidates

Are you getting the attention of the right people for the job? Before you begin the recruitment process, you have your vision of what a qualified candidate looks like, their attributes and qualifications.

By analyzing how effective your efforts have been to attract and progress qualified candidates through the recruitment pipeline, you can see if what you are doing is thriving or preventing it. 

When HR can see the number of qualified candidates they are attracting, they can better understand the causes preventing the most skilled candidates from joining their organization. For example, it may be ineffective screening, poor source quality, or the job description not explaining what you need.


Candidate Net Promoter Score (NPS)

NPS offers HR the candidate's perspective of the recruitment process. And whether, based on their experience, they would recommend the organization to others. Acquiring the candidate's opinion is critical for businesses to improve their hiring process to deliver an excellent candidate experience.

Candidate experience is critical for businesses. It can help boost a brand's reputation and provide the edge over competitors to recruit fantastic talent and maintain customer loyalty. You can read more about how Virgin Media revolutionized their candidate experience and the benefits they achieved here


Turnover Rate

Suppose your organization sees a high turnover rate, especially amongst new hires in their first year. In that case, it suggests that employees aren't happy with their job. Consequently, it means you have to spend more money on recruiting to fill these gaps.

When HR knows your organization's turnover rate, they can take action if it is too high. Which could mean reviewing how you recruit so candidates understand the position's requirements explicitly, ensure they are correctly onboarded and change the workplace culture. All improvements can help to prevent the high turnover of staff.

As a result, it can help you increase retention rate, lower recruitment costs, and boost employee satisfaction and productivity.



Why recruitment KPIs are essential for your organization

A recruitment KPI measures activities and performance related to the hiring process. It can help reveal valuable insights that highlight to HR and the business what is working well and what isn't. 

It is impossible to improve if you don't measure the results of your work. Measuring recruitment KPIs can help your HR teams make better strategic choices about focusing time and money and ensuring they coincide with company goals and objectives. As a result, the recruitment process can provide value to the organization and a return on investment.

After selecting your KPIs, your recruitment teams can set up processes to track and report them. Then, with the information and data at hand, HR can do more of what works and make adjustments by acting on the findings.

To grow and develop, these recruitment KPIs allow you to assess and improve recruiting continually and onboarding efforts, thus contributing to your organization's broader goals.


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