Comprehensive List of Types of Recruitment Metrics

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Andy Clarke

5

min read

|

28 Jun 2024

Recruitment metrics often feel like a puzzle. You might find yourself swamped with data and still have no clue if you’re hitting the mark. Metrics like Time to Hire, Cost per Hire, and Quality of Hire are crucial. They help you align your efforts, showcase success, and pinpoint where improvements are needed. Let’s break these down so you can turn these numbers into actionable insights.

What are Core Recruitment Metrics?

What is Time to Hire?

Time to Hire measures the amount of time it takes from identifying a need for a new position to the moment a candidate accepts the job offer. It’s an essential metric because long hiring processes can result in losing top talent to competitors.

You can break down Time to Hire into different stages to identify bottlenecks. For example, measure the time between advertising a job and the first interview, then between the first interview and the job offer. This breakdown can help you pinpoint exactly where your process drags and needs improvement.

Pro-tip: Use Applicant Tracking Systems (ATS) to automate and track each recruitment stage efficiently.

How to Calculate Cost per Hire?

To understand Cost per Hire, you need to look at all expenses incurred while hiring a new employee. This includes advertising costs, recruitment agency fees, and the salaries of the recruitment team.

Calculate Cost per Hire using this formula: (Total hiring costs) / (Number of hires) = Cost per Hire Tracking these costs helps you understand the financial investment required to attract talent and identifies areas to cut unnecessary expenses.

Pro-tip: Consolidate job advertising on fewer platforms to lower costs and monitor the effectiveness of each platform.

What is Quality of Hire?

Quality of Hire is about how well new employees perform and fit into the company. High-quality hires deliver more value and stay longer. Typically, you measure Quality of Hire using performance reviews, retention rates, and feedback from managers.

To make this metric actionable, establish clear criteria for evaluating new hires. Performance metrics and long-term potential should all be part of this mix. Collecting feedback at different intervals (e.g., 3 months, 6 months, 1 year) helps in creating a comprehensive view of a new employee's impact.

Pro-tip: Set a structured onboarding programme to ensure new hires adapt quickly and start contributing effectively.

Understanding Recruitment Funnel Effectiveness

Your Recruitment Funnel shows the journey from attracting candidates to hiring them. Each stage - Awareness, Interest, Application, Screening, and Selection - can be assessed for effectiveness. Look at the conversion rates at each stage to identify where candidates drop off.

Regular review and analysis of your recruitment funnel identify stages that need improvement. For instance, if many candidates drop off after the screening stage, it might be due to a cumbersome interview process. Streamline processes at each stage to improve overall efficiency.

Evidenced can help you identify how your interviews are performing, which interview questions are decisive in the overall hiring outcome and which interviewers need more training.

Pro-tip: Use visual dashboards to monitor and compare different stages of your recruitment funnel in real-time for quick adjustments.

Candidate Experience and Satisfaction

Evidenced gathers candidate feedback after each interview with a simple question “How was [Company Name]’s interviewing this time?”. The candidate has 5 emoji faces to choose from and depending on which they chose, are asked a follow up of “What did they do well?” or “What could they do better?” .

Each emoji on the survey is tied to a number between 1 and 5, allowing us to create an Uber style rating score for each interviewer out of 5. Evidenced allows you to see this score over time so you can see whether your interview coaching and training are having a positive impact on your CSAT scores.

First-year attrition

First-year attrition is a critical recruitment metric that measures the percentage of new hires who leave an organisation within their first year of employment. This metric is significant as it reflects not only on the effectiveness of the recruitment process but also on the company's onboarding, culture, and employee engagement strategies. High first-year attrition rates can be costly for organisations, both financially and in terms of productivity, as the expenses associated with recruiting, hiring, and training new employees are essentially wasted when they leave quickly.

To calculate first-year attrition, divide the number of employees who left within their first year by the total number of new hires, then multiply by 100. This gives you the first-year attrition rate as a percentage. To improve this metric, companies can focus on enhancing their onboarding process, providing clear job expectations, offering regular feedback and support, fostering a positive work culture, and ensuring competitive compensation and benefits.

Recruitment marketing ROI

Recruitment marketing ROI measures the effectiveness of an organisation's efforts to attract and engage potential candidates. It compares the value generated by recruitment marketing activities to the costs invested in them. This metric helps companies determine if their strategies are yielding positive results and justifying resource allocation.

To calculate recruitment marketing ROI, consider both costs (e.g., job board postings, advertisements, content creation) and benefits (e.g., improved hiring outcomes, reduced time-to-fill).

Tracking this metric allows organisations to make data-driven decisions about talent acquisition strategies, optimise spending, and focus on the most effective channels. It also helps justify budget allocations and demonstrates the value of recruitment marketing efforts to stakeholders.

Improving recruitment processes with metrics not only ensures a more efficient workflow but also enables a higher quality of hire that aligns with organisational goals. By leveraging tools such as Evidenced, you can standardise interviews, reduce time to hire, lower costs, and enhance the overall quality of the recruitment process. Analysing the right data points makes all the difference.

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Frequently Asked Questions

Which metrics are used in recruitment analytics?

Common recruitment metrics include:

  • Time to Hire

  • Cost per Hire

  • Quality of Hire

  • Recruitment Funnel Effectiveness

  • Candidate Satisfaction Score

  • Recruitment marketing ROI

  • First-year attrition

How is Cost per Hire calculated?

Cost per Hire is calculated using the formula: (Total hiring costs) / (Number of hires) = Cost per Hire.

Why is Quality of Hire important?

Quality of Hire is important because it measures how well new employees perform and fit into the company. High-quality hires deliver more value and tend to stay longer with the organisation.