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As we discussed in a previous article, using recruitment marketing techniques will help you find and hire the right candidate for the job. In a competitive hiring market, it is critical to know which of those strategies to invest in and which to drop.

5 Key Metrics for Measuring Recruitment Strategies

Whether you are a small, mid-size or large business, once you select and use various recruiting strategies, you will want to measure them for effectiveness. There are numerous bits of data you could string together regarding talent acquisition, but here are our top 5 key metrics. 

#1 Source of Hire 
Are you tracking where your candidates come from? This might sound tedious but it’s an eye-opening stat to track. If you need quality candidates (and let’s face it, who doesn’t), then you need to know effective search methods. This is especially important when every budget dollar counts. For example, let’s say you use LinkedIn, Facebook and Indeed to recruit candidates. Then you start to track your source for hire and discover your most qualified candidates come from LinkedIn. Now you feel comfortable omitting job board spend, therefore saving you time and money.  

Just like a retail establishment might ask, “how did you hear about us?” at the checkout, you want to know how your candidates found you. When you know where to post jobs to target the right people, you will get the most out of your advertising dollars.  

Track this metric  
After sifting through resumes and screening candidates, keep a record of where those top candidates came from. You might consider asking them how they found you to see if they have further context to add.  

#2 Qualified Candidates (a.k.a. Leads) 
The term “qualifying leads” is language that is familiar to business owners in a sales context. The same goes for recruitment and hiring. Just like identifying the target market and ideal client, identifying the right type of person who is ideal for your job opening will help you find the best candidate. Furthermore, it can inform your process going forward. For instance, if you know you need at least 6 qualified candidates to fill one customer service position, then you know the number to reach before moving on to the interview stage.  

Track this metric  
Qualified candidates = Total candidates per job opening who move past the second stage of the recruiting process. (Typically the second stage is the phone screening.)  

#3 Conversion Rate (of Job Posting) 
Online metrics can fall in a few different categories. Some tell you a little (clicks or views) and some tell you a lot (conversion or application). When it comes to evaluating where your recruiting or hiring budget will go, what matters most are the conversion metrics. Using this formula will reveal how your posting is attracting potential candidates and converting them into applicants. If they don’t take action, then perhaps it’s time to evaluate how to improve your job posting. That might mean the way it is written or the way it’s presented. (You can check out one of our clients enhanced job postings here.)     

Track this metric  
Conversion rate % = Number of applications/total job ad clicks X 100  

#4 Time to Fill   
How efficient is your recruiting process itself? If you’ve ever lost the person you were planning to hire late in the game, then you know the value of calculating time to fill. This key metric needs to include the complete timeframe, including the number of days between when a job requisition is approved and the day an offer is accepted by the candidate. 
Society of Human Resource Management’s latest survey finds the average time to fill is 41 days. (As an average, it could be more, or it could be less). Identifying talent quickly from start to finish is key in making your hiring and recruiting process effective. Great candidates likely have many lines out at the same time so the more efficient you are, the more likely you are to snag the top talent in the candidate pool.  

Track this metric 
Writing down the day you decide to hire and the date your offer is accepted by your chosen candidate. Keep a record every time you hire, then take the average.  

#5 Cost per Hire 
Cost per hire (CPH) revels the average amount of money you spend on making a hire. There are different ways to measure this one, so you can choose what works best for you in your business. Measuring CPH can help you determine the required financial investment your company needs to make in order to attract and hire the right candidate. Costs to be accounted for might include agency fees, advertising costs, internal recruiting costs, assessment tools, time invested at each stage of the process, and even travel or relocation if applicable. Evaluating this metric will help determine your recruiting budget.  

Track this metric  
CPH = (Internal recruiting costs + External recruiting costs) / Total number of hires  

START WITH 5 METRICS
There is not a one-size-fits all approach to hiring and recruiting. And just like any other area of your business, your recruitment strategies should be measured and evaluated for effectiveness. These top 5 key metrics will help get you started. And if you need help with them along the way, that’s what we are here for! Contact us here.