HR recruiters need hiring metrics for making educated decisions about the hiring process, and recruit the best candidates for the job faster. LinkedIn research shows that recruitment teams that use hiring metrics are twice more likely to recruit capable, and talented candidates at a much faster rate.
Recruiting metrics will tell you where, and how to spend your time. how to track the success of every step of the recruitment process and evaluate the methods used in hiring.
Here are the top 8 metrics recruiters should track for effective recruitment.
1. Applicants per job opening
This will tell you how well you have promoted the job opening, and how popular the company is with candidates. It can be calculated by totaling the number of candidates you have, divided by the total job opening. If the number is low, the company needs to spend more on promoting job openings across free and premium job websites.
2. Cost per applicant
High quality candidates can only be acquired through investments in valuable recruitment channels. However, this is a metric that should be tracked to reduce overall recruitment costs.
It can be calculated by the total amount of money spent on a job opening, divided by how many candidates you have for that job. There are many free job boards and social media channels that can be optimized to find quality candidates while reducing the cost per applicant cost.
3. Cost per hire
The hiring budget should be allocated on job positions based on the calculation that can tell which job positions are most expensive or least expensive to hire.
A lot of the recruitment task can be completely automated, like the applicant tracking process. This will free up the manual component of recruiters, reducing cost. Reducing cost per applicant can also dramatically reduce the cost per hire.
4. Job marketplace visitors vs. applicants
Even when you are placing your job positions on free or premium job websites, candidates will be drawn towards it based on how well created the content is.
You can calculate this metric by totaling the number of applicants and dividing it by the number of visitors on the website. If you have an internal job posting website, it should be intuitive and easy to use for candidates. If possible, make it more appealing.
The application that is used to recruit the candidates should be simple. Candidates should be able to fill out this form easily. Also try to diversify the number of places where you are posting the job, to get applicants from various websites.
5. Applicants per hire
If one of the rolls is very hard to fill, you need to have a greater number of job applicants applying for this position. Applicants per hire can classify such hard to recruit role, focusing your efforts where needed.
It can be calculated by totaling the number of candidates it takes to fill a single role. Optimize the website for job filling, and simplify the application form. Post the job in more forums.
6. Qualified candidates per hire
It is a crucial metric because for most skill based jobs quality can be a greater factor than the number of candidates. Understand what kind of applicants you are attracting for open job positions.
It can be calculated against benchmarks, such as how many candidates reached the second round of job interviews to fill a single position.
This can be improved by clarifying the roles. Quality candidates have specific skills and specializations, and they are looking for precise job recruitments that will attract them to understand how well they fit at the job. You should communicate the company culture and brand vocally in social media sites, or your website to get the message to talented candidates that they want to join the organization.
7. Hires per source
Your focus should be the platform that is generating the most talented candidates for recruitment. By concentrating your effort on the most effective platforms, it will raise the productivity of the recruitment team.
Quantify the number of candidates hired through each source of recruitments such as job boards, or referrals.
Incentivize the channels to make them more productive. If candidate referral is the top source of qualified candidates, focus on creating a guided employee referral program that will award employees.
8. Application completion rate
This metric can reveal if you have any issue at the very first step of your recruiting process – the application form. The goal is to keep this number at a very high range.
It can be calculated by dividing the number of application forms submitted, by the total application form created.
If this is low, understand if the application form is asking too many questions, is complicated, or has other issues. Keep it short and simple to attract candidates.