Recruitment metrics in HR are standards of measurement to make the process of hiring competent candidates for the organization more efficient and manageable. The process of hiring can be external or internal which means candidate recruited can be from within or outside organization. But, recruitment metrics will help the recruiter understand whether to engage in internal recruitment or external recruitment.
Recruitment metrics reduce the cost per hire and time to hire and they also increase the quality of hire. Recruitment metrics should be goal oriented. The type of recruitment metrics employed by the Recruiting Agency, Talent Acquisition Consultant, Recruitment vendors and consultants will depend upon the hire strategy of the organization.
At RippleHR Global, we have our special techniques to help you choose the perfect recruitment metric for your organization. We try to understand the goal and vision of your Company and accordingly select the necessary recruitment metrics that might work wonders during our recruitment programs.
Important Recruitment Metrics in HR
Time to fill (TTF)
TTF is the time taken to fill the job description and post after identifying and assessing a candidate’s skills which should be at par with the job requirements. The candidate can be recruited internally or externally but the time to fill metric mostly focuses on completing the step of hiring a candidate and checking their background and references.
This metric is used to measure the ratio of the number of external candidates hired to the number of internal candidates hired along with providing a view to the recruiter about the time by which they can replace an employee who is departing.
Time to Hire (TTH)
TTH is the time duration starting from when the candidate approaches for the job to the date on which the candidate accepts the job offer. This metric helps assess the efficiency of the recruitment agency, team or consultant. It shows the duration it takes for moving from each hiring stage. A shorter time to hire is always preferable unless the employer has special requirements of thorough scrutiny of each candidate.
Source of Hire
The sources of recruitment also work as effective metrics for attracting the required batch of competent candidates. This metric is for attracting the talent pool. Source of hire can be job portal, hiring Organization’s career page, social media platforms, talent sourcing agencies, etc. The source of hire chosen by the recruiter must have the efficacy of attracting a bunch of candidates whose skills match with the job description. This is totally data driven metric and it is important to choose it correctly to make the recruitment process successful.
First Year Attrition
First Year Attrition is an essential recruitment metric which helps assess hiring success of the recruiter. It is the number of candidates who leave their job in the first year itself, this attrition rate can be managed or unmanaged. Managed first year attrition is when the management fires the candidate within the first year and unmanaged is when the candidate leaves the job on their own, unmanaged attrition arises out of high expectations and managed attrition is usually because of candidate’s low productivity rate. Lowering of the attrition rate is an important objective for the recruiter.
Quality of Hire
Quality of hire metric assesses a hired candidate’s performance in the period of first year of working at the Organization. This metric is indicative of the type of candidate hired, high performance rating means the candidate has been competent and has effectively matched the job requirement which would mean that the process of hiring has been successful. While a candidate with low performance rating would indicate the failure of the hiring process.
Cost per Hire
Cost per hire has a very simple formula, it is nothing but cost of undertaking the hiring process divided by the number of candidates hired. This gives the recruiter a view of the cost efficiency of their hiring process. This metric consists of multiple cost structures which can be subdivided for the better understanding of the recruiter, external and internal cost. All of these costs are considered to calculate the cost per hire metric of the recruitment process. It is always an objective of the recruiter to lower the cost per hire as much as possible but obviously not at the cost of quality of hire.
Why Should Recruitment Metrics in HR Be Tracked?
It is important to track recruiting metrics because they make the recruitment process more efficient and seamless. Recruitment process is a costly process and so the Organization must take special care while hiring the Recruitment and talent acquisition consultants.
Diligent consultants will try to take extra care and time to understand the long term and short term objectives of the Organization. After understanding the objectives, they will assess the recruitment metrics accordingly that best match the Organization needs, goals and several other criteria. If recruitment metrics are not tracked then the whole recruitment process will fail in long term. Recruitment metrics helps the recruiter understand the efficacy of their hiring process techniques. If the recruiter doesn’t assess these key metrics then they wouldn’t be able to build your dream workforce.
At RippleHR Global, our team knows and understands your vision and needs and we don’t hesitate on learning more about your Organization. Our techniques are absolutely data driven and they employ effective key metrics of recruitment. We understand the importance of tracking the recruitment metrics and this has enabled us to get the best possible results for our clients.
Which Important Recruitment Metrics in HR Should Your Organization Focus On?
That is a simple question but has a complex answer. We have noted down some of the important key metrics of recruitment but the ones that you should employ will entirely depend upon your needs and goals.
First, understand your objectives and vision and then choose the key metrics, you may choose all of the key metrics mentioned but their degree of importance will always differ and assessment of this degree of importance is very crucial for the success of the hiring process. The degree of adopting the recruitment metrics also depends upon the industry your Organization is attributed to. IT recruitment consultants employ different metrics unlike other service recruitment consultants.
Recruitment KPIs or key performance indicators are assessed from data obtained from recruitment dashboards and other researching techniques of Recruitment consultants. Application of recruitment metrics or KPIs is a very data driven process and must be undertaken with proper care, a successful recruitment procedure is incomplete without the application of these metrics.
Our team of professional recruitment consultants at RippleHR Global employs the metrics only after understanding your needs and objectives. We understand and then apply effectively and this effective application of Recruitment KPIs has helped us to deliver successful recruitment services to our loyal clients.
Efficient Utilization of Recruitment Agencies
Recruitment consultancy firms have professional recruitment consultants who have special techniques to deliver to you the best recruitment techniques. As the client, you must choose your recruitment agency according to your needs and values. In turn, the recruitment agency also must understand your needs and help you build a competent workforce of skilled employees and an industrious leader.
Recruitment Agencies become the connecting link between you and the talent pool and so there must be communication and understanding. Different agencies have different hiring techniques, you must research about these techniques and help them develop the best technique that fits your vision. If you have the basic knowledge about recruitment techniques then it will be very lucid for you as a client to choose the Recruitment agency and effectively utilize their services too.
At RippleHR Global, we don’t just fill job spaces at your Organization, we take the extra step of understanding your needs, values and goals. In a partnership, understanding and communication is the key binding force. Once we become confident of this strong sense of partnership, we apply our Recruitment techniques which are formulated by the best recruitment consultants of the industry. Your vision of a dream workforce is not very far when you have joined hands with us!
For more information on HR management, recruitment and training consultancy solutions, check out our services!