The most important question to ask while reviewing any recruitment initiative is “How do we measure the return on investment of that initiative”. In order to make the recruitment program the best, you need to measure its success using data reports and set goals to make it more efficient. Whether a recruiting drive exceeds expectations or lacks results, the resulting information can be effective in taking the necessary action required using the recruitment software.
Metrics to track the performance of recruitment initiative
Now the question is how to measure the success of recruitment initiatives or what strategies should be designed to measure the success. Let’s have a look at the metrics that can show you what’s right or what’s wrong.Time to fill and time to hire the candidate
Time to fill refers to the time gap between HR approving a job requisition and when a candidate accepts the job offer. This is basically the minimum time your organization requires to hire the candidates after the job requisition.There is a slight difference between the time to fill and the time to hire as it is the time duration from the date of the application to the date they accept the job offer.
Recruitment initiative is measured at each stage of the recruitment process and organizations can make use of top recruitment software to streamline the whole process:
1. Job board advertising
2. Screening of relevant candidates
3. Interviewing the selected candidates
4. Communication with desired candidates
Use standard industry benchmarks to determine how your time to fill compares to the average rates.
For example- the Naukri.com team published median time-to-hire rates based on an analysis of 3,00,000 hires across the whole platform. These data may vary from role to role and industry to industry. Let’s say the median time to hire for administrative or customer service roles is 30-35 days but for an engineering role, it may vary from 40-45 days.
Cost per hire
Cost per hire reflects the total cost incurred on hiring a new employee, including the cost associated with advertising and screening, interviewing, onboarding and everything else that is covered under the recruitment process.The metric reveals the efficiency of recruitment processes and compares various costs.
- The cost of using the HR software
- The cost of manual processes
- The cost of using external recruitment agency to hire candidates
Cost per hire= Total recruitment costs/ Number of hires made
When measuring the total cost of recruitment any additional cost associated with recruitment must be included.
The impact of turnover reaches far beyond the expected costs:
- Terminating the employment of an employee
- Replacement costs of employees
- Struggling with a vacant position
- Lost productivity
Diversity
Diversity metrics aren’t about just meeting a diversity quota by counting different backgrounds from which you hired applicants. Useful metrics to track diversity includes:1. Diversity of application versus the actual number of hires- A significant mismatch in data could lead to bias in the whole hiring process.
2. Staff retention- Employee churn-out ratio could cost a handsome amount of money to organizations. So it’s necessary to retain employees for a long time so as to sustain the best talent in organizations. A high churn rate could harm the organization’s culture.
3. Diversity across the levels of organization- If the workforce of the organization becomes homogeneous higher up in the organization chart it means the organization didn’t provide equal opportunities to their employees for their progress.
4. Pay Equity- Compensation is the easiest way to track. The wages of employees vary in organizations based on their positions.
Candidate Experience
Candidate experience is measured for all the candidates who accept the offer or who reject the offer. The candidate experience matters a lot for an organization as good candidate experience helps to build the reputation of the organization.But the question is what are potential hires looking for from their experience as job applicants?
A strong communication process is integral, with over 50% of rejected job seekers stating they would be happier to apply to the same organization in future if they received feedback during the hiring process.
According to a report 50% of candidates won’t submit the application on the portal if it takes more than 15 minutes to complete.
A rough and bad experience could lead to telling friends and network about their poor experience or leaving negative reviews on social media platforms.
Recruiter productivity
The right recruitment software should support your hiring team by avoiding manual time-consuming tasks. They might include automated emails to employees and reminders to streamline the application process.Track recruiter productivity metrics such as:
- Total time spent on recruitment tasks
- Number of applicants processed whether on a daily or monthly basis
- Total number of interviews conducted
- Number of offers accepted each month
Having a conscious look at these numbers gives us useful data-driven insights on how the software helps in speeding recruitment processes.
First-year attrition rate
33% of employee turnover happens in the first year of joining the organization, delivering little to zero return on the investment made to hire a candidate in the first place.Offer acceptance rate
The offer acceptance rate refers to the number of candidates who confirm they would like to work for your company after you have extended a formal letter.Offer acceptance rate= Number of offers accepted by organization/ Number of offers extended up to a certain time
Turning down a job offer is more common these days. Generally, candidates turn down a job offer for better job opportunities, better workplace conditions and various other factors.
A low acceptance rate will spotlight any threatening issues in your approach to engage high-quality candidates, allowing you to take necessary action.
No comments:
Post a Comment