The Recruitment Analytics Question – What Data Actually Matters?
With an astounding 2.5 billion gigabytes of data produced each day, we are no doubt living in a data-driven world. Almost everything and anything can be measured and analyzed – but how does big data work for such a people-focused process like recruitment? Data-driven recruitment allows you to clearly see how your recruitment strategy is performing – so you can learn from the past and continuously improve. However, simply aggregating data via your ATS isn’t enough, you need to know what data points to look for and how to interpret them.
There are a lot of different metrics to consider, but here we want to highlight some of the basics.
1. Time to Fill a Vacancy
This is the most basic recruitment metric. With time to fill, you simply track how long it takes to successfully place a candidate from the moment the vacancy has opened. This metric can show you which kinds of roles typically take longer to fill – allowing for better time management in the future. For instance, vacancy with long times to fill will benefit from proactive recruiting and pipelining. As a recruiter, this metric is also useful in managing expectations as it allows you to inform hiring managers how long they’ll have to wait before the position is filled.
That said, don’t rely on time to fill as your only metric. There are a variety of other factors involved, and a singular focus on this one data point can hurt your ability to deliver the right candidates.
2. Qualified Candidate Ratio
The qualified candidate ratio is a good example of looking outside the time to fill metric. Strong recruiting teams don’t just measure how many candidates they found and how long it took them to fill a role, they also look at how many qualified candidates were considered. This is a useful metric in both measuring the effectiveness of your recruitment marketing as well as your sourcing. If your sourcing team is delivering dozens and dozens of candidates, but none of them are rated as being qualified, then your team is effectively not doing any sourcing at all. A focus on qualified candidates allows your team to push to work more efficiently.
3. Effectiveness of Sourcing Channels
With such a huge variety of platforms and channels available, you need to know which ones truly work. A data-driven recruitment strategy allows you to keep track of exactly where your top candidates are coming from – and thus where to focus your efforts both in terms of sourcing and advertising. For instance, if you find that you get more qualified candidates from Facebook ads than via LinkedIn, then it would be wise to adjust your advertising budget accordingly. The same holds true when assessing where your sourcers spend their time looking for candidates.
4. Hiring Success Rate
This essentially boils down to how many successful placements you make, and success here doesn’t just mean that someone is placed – it means that they fit, they perform, and they stay. Starting with job offers, keep track of how many of those translate to hires, how many hires work out, and how long they remain with the company. Using data-driven recruitment in this way will help give you some clear insights in how your recruiting and onboarding process is working. Some key areas to focus on include:
- Offers vs. acceptance: This is an important metric for assessing how accurately you are matching candidates to vacancies (and companies). A high candidate-offer-acceptance ratio clearly indicates you’re doing something right. A lower than average rate of offers or acceptances highlights a problem that needs to be fixed ASAP. Using surveys after the hiring process can help you determine if there are problems related to the offered salary, the interview experience, etc.
- Fit and Performance: This metric will vary between organizations, but generally it involves tracking both how happy the hiring manager is with the new employee and how well he/she is performing based on KPIs. One thing to watch out for
- Turnover: It is one thing to place a candidate in a role, but if they leave straight away, you are back to square one. This is costly for everyone involved, so keeping an eye on retention rates and turnover is absolutely critical.
5. Individual and Team Performance
Last, but not least, it is essential to track how both teams and individual performers are contributing. Rather than use a standard set of KPIs that keep everyone holding to the same standards try creating unique KPIs for each recruiter and sourcer, this will allow you to push people to focus on their strengths. You can then use broader KPIs to track overall team performance.
Data-driven Recruitment: In Summary
All of these metrics combined paint a very clear picture of how successful your recruitment strategy is. Big data recruitment compiles your entire recruitment history into one single location, so you can learn from past performance. Hiring is both costly and time-consuming for all parties involved – be it external recruiters, HR departments or hiring managers – so it is essential to make the process as quick, accurate and effective as possible. When implemented correctly, a data-driven recruitment strategy eliminates the guesswork for more reliable results.