7 indicators that will take your recruitment process to the next level.
What criteria do you use for hiring new employees and picking existing ones? We provide you with the most meaningful hiring process metrics so that you can build your hiring process dashboard if you haven’t started measuring and evaluating it yet.
What do recruitment and selection KPIs indicate?
The recruitment process and the team that does it can both be evaluated for efficacy using measurements known as recruitment and staff selection indicators or KPIs (Key Performance Indicators).
They can be a beneficial instruments for measuring and evaluating processes or tasks that are carried out with an eye on employing individuals if appropriately used.
We can make the required adjustments to meet our recruitment targets thanks to them, knowing how close or how far we are from doing so.
Why is a measurement of hiring and selection procedures crucial?
For HR professionals, identifying crucial hiring and selection criteria to gauge the effectiveness of the employment process can take time and effort. The only way to enhance and optimise internal processes is through it.
These metrics provide information on your progress toward your recruiting objectives. Accordingly, an accurate study of these indicators enables you to:
Recognize the effectiveness of your recruiting methods, modify your approach, and make wise choices regarding the time and money spent on the process. It’s crucial to be clear about the criteria by which you evaluate your findings. For instance, you can contrast your outcomes with those from earlier times (month to month or year to year).
And undoubtedly, after conducting this analysis, ideas for advancement will surface that will produce immediate benefits. For instance, shortening the recruitment process can help the business’s bottom line since it costs money for a position to remain unfilled each day. The cost of a recruitment and selection process can be estimated between €4,000 and €15,000 on each contract.
Harvard Business Review claims that 33% of new hires are looking for a new job within the first six months. Reviewing and measuring the process will help your company reduce turnover and save you tons of money.
The 7 most important KPIs
Recruitment metrics are a crucial component of the process since they allow for thorough monitoring and the gradual introduction of improvements.
The best course of action is to have a dashboard with some of the key metrics on it. You can look at our template for hiring workers.
1. Quality of the source
One of the most crucial recruiting and selection KPIs enables us to assess the caliber of each source we use to find applicants (LinkedIn, job portals, etc.). One company may send you 50 resumes, but only two are appropriate, while another sends you only 25, but 10 of them are. With this knowledge, you’ll be able to focus your investments and make the most efficient use of your company’s funds.
How may the value of a source be evaluated? Find out who has progressed the most in the selection process and where they are from. Once the figures are precise, divide the total number of leads that came in through each source by the number of quality leads from that source. In this manner, you will have a ratio to contrast.
2. Number of interviews to hire
Finding the perfect candidate requires striking a balance because interviewing candidates takes much time. No more, no less You may better determine how many applicants you need, how many individuals should participate in each round of interviews, whether you can conduct some over the phone, etc., by knowing how many must be completed on average for each profile prior to making an offer.
3. Qualified candidates for each position
The more people that apply for the open position, the more possibilities the company will have, so the more applicants, the better. They merely squander the recruiter’s time if they aren’t qualified for the post. Additionally, a high number of these will indicate that the offers are not being published in the appropriate locations.
The best way to determine if there is an issue is to monitor the ratio of qualified applicants to openings. That is, the quantity or proportion of applicants who are genuinely qualified to fill the position.
4. Rate of abandoned applications
Some applicants frequently begin their applications but, for whatever reason, never finish them. If this data is high, you’re probably passing up the chance to network with important experts for your business since the registration procedure is so drawn out. As a result, you need to keep your abandonment rate under control.
Divide the total number of applications received by the total number of applicants who began an application to arrive at the ratio.
5. Recruiting cost
Hiring a new employee requires a financial commitment (of time, resources, and money). You should check the cost of hiring to ensure that you do not spend more than you intended. The average cost of the entire procedure is calculated using the following factors:
It costs money to recruit.
Managers’ and workers’ time spent on the project, administrative costs associated with educating and integrating new hires. To determine whether the quality is directly related to the investment made, it is advised to find the total average cost of recruiting and the cost according to the candidate’s experience.
6. Candidate satisfaction
An applicant pleased with the hiring process will likely accept the offer and work longer in the role.
Sending candidates a survey with straightforward questions is an intelligent option to obtain this signal because their responses will enable you to enhance the application process for future candidates.
7. Cost per contract
As we’ve already indicated, the corporation invests a lot of money in hiring. Therefore, cost averaging will enable you to budget more precisely if you intend to increase your payroll while trying to avoid spending more than is required.
Each open position will come with a recruitment cost.
How are KPIs tracked?
More than knowing which indicators are most important is required for them to be truly helpful; appropriate monitoring is also required.
The two most popular methods for monitoring recruiting and selection KPIs are as follows:
a spreadsheet in Excel to track each indicator as the procedure moves forward. However, manually regulating these indications becomes more difficult as the business expands.
a recruiting program that automates the process to cut down on time-consuming tasks.
The goal of defining and evaluating these indicators is to enable analysis of the potential for process improvement. In order to do this, relying on an automated tool expedites and improves the quality of the outcomes.
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