Finding the right talent for your business to prosper requires a lot of resources, time, and effort. This is where your recruitment partner can be a great help who can offload you from comprehensive hiring processes.
In recent times, the top-notch recruitment agencies have moved beyond the traditional practices based on intuition and estimates. Today recruiters take into account data-driven techniques and harness the power of modern tools to analyse and evaluate the recruitment processes. Recruitment Metrics are a way to track the hiring procedures and quicken the processes.
ERE media, industry leader in recruiting news, had published a list of a comprehensive standard set of recruitment metrics that organisations should watch for their recruiting partner.
Here are the essential ones listed in detail:
Time to Hire
Time to Hire is an important metrics that help the organizations measure the number of days their recruiting agency takes. It is the time from the day a talent acquisition requirement has been shared to the time the right candidate is on-boarded. It is a reliable indicator of the performance of your recruitment team.
Time to Hire is also called Time to Accept. By reducing the time to hire companies can increase their overall recruitment efficiency. Reportedly companies like Google, Hilton, etc. reduced their ‘time to hire’ efficiently by tweaking their hiring procedures.
Cost Per Hire
The total cost invested in the hiring of prospective candidates for a position divided by the number of candidates hired shows the Cost Per Hire.
The Cost of hire is a combination of many expenses, including recruitment agency fees, and other costs. These can be both internal and external costs which collectively make the Cost to Hire. When these costs combined are divided by the number of hires, Cost Per Hire is determined.
Offer Acceptance Rate
This rate helps the company to estimate and analyse how well the hiring strategies of their recruiting partner are working. It shows the ratio of the offers given by their hiring agency and the number of candidates who accepted their offer.
When the rate of acceptance is low, then there may be certain loopholes in the offer process. There may be compensation-related issues or communication gaps.
Mostly the potential candidates refuse job offer because of the salary offered to them. If the benefits and salary are listed in the job offer explicitly or the candidate’s salary expectations are discussed at the initial phase, the refusal rate can be decreased.
Offer Acceptance Rate = Number of offers accepted /number of offers released.
Application Drop Off Rate
The Application Drop Off Rate determines how many candidates initiate the process of application for the job; however, it does not complete it. This metric is an indicator of potential problems in the candidate experience while they are in the process of a job application through your hiring partner.
The organizations should keep a check on this metric for their recruitment agency. The job application process by your agency should be streamlined and optimized for the latest gadgets, like mobile phones. The top talent of the present times would not be spending much time in filling unnecessary detailed job applications.
Hiring Sources and Channel Effectiveness
Recruitment channels are vital to reaching out to the excellent quality of potential candidates. The speed and effectiveness of the channels determine the success of the hiring process followed by your recruitment partner. Hiring Sources and Channel Effectiveness is a metric that lets the organizations know how well their recruitment partner’s various hiring channels are performing.
Social media recruiting is one of trendiest way which your recruitment partner should be leveraging. Hence, Sourcing Channel Effectiveness metric helps to measure successful conversions through various sourcing channels of your hiring agency.
To Wrap Up
The Recruitment Metrics is an efficient way for the organisations to quantify their talent acquisition partner’s hiring procedures. These metrics are a clear indicator of how well your hiring agency understands your staffing requirements and whether it is well equipped to cater your needs in a cost-effective & timely manner