Whether you love data or not, we live in a digitally-driven world in which numbers matter. Data can help to inform your decision making and help to analyse the success of your work. However, it’s easy to feel like there are too many numbers at your fingertips. So, how do you know what to measure?
Here’s our guide on what to watch out for…
You should start by analyzing how you acquire candidates. Is it only applicants? Is there passive candidates that have been sourced? What brings you the most candidates? You will get a clear overview of how your talment acquisition looks like.
Time to hire
You also need to take a look at how long it will take you to get someone through the door and up and running in their role. Use previous hiring experiences as a guide to ensure your findings are accurate. With this, you’ll be able to communicate hiring expectations to wider teams or the hiring manager; depending on if you’re in a startup or working for a larger company. The things you will need to consider that will fall under the time to hire metrics are:
- The time spent writing a job description and distributing to recruitment platforms, social media and the company’s website.
- The application window (using data to look at the typical time for this).
- Time spent searching through CVs and scheduling interviews.
- Time spent per hour per employee on interviews.
- Time allowed for decision making interviews.
- General notice period given by the new hire’s previous employer before they can join.
- Period of probation for any new recruit.
When you’ve calculated how long these tasks will take, it’ll help you work out the return of investment. Not only this, if you find that if you’re taking too long on certain steps you’ll be able to revise processes to shorten time spent and reduce costs, pinpointing the stage where most time is wasted.
The quality of sources of applications is really important, it has a direct impact on your budget. You have to identify the most efficient channels when recruiting, such as referrals, job boards, social networks, etc. One source can be really efficient in a given company, but not necessarly in another one. It depends on the size of the company, the industry… But also on the job, the profile you’re looking for etc.
To optimize the conversion rate of your recruitment, it’s absolutely necessary to respect each step of the recruitment process, firstly the job application, then the sourcing, the pre-qualification, and then the interview, offer and last step is the validated trial period. You must go step by step and follow the order of the different steps of the recruitment process.
A new recruit should have a ripple effect throughout a team and your businesses – allowing you to do more or to work quicker and more effectively. By monitoring the performance of a team – specifically on the key business performance indicators that your hire was brought in to assist with – you can gauge the effectiveness of your hire and monitor whether further recruits are needed, and identify other issues that might need to be resolved through fresh recruits.
Calculate the ROI
One of the most comprehensive metrics you should be using when you’re considering recruiting is the return of investment, or ROI, marker. The results will help you understand if a new hire is worth investing your time and finances in. To calculate your ROI you should analyse the time to hire metric against the direct costs before hire, the onboarding spend and how long it will take a new employee to get up to full performance.
Advertisement costs, internal administration fees, or cost for any recruitment tools you’ll use are all direct costs that you’ll need to pay for before hiring and need to be factored in.
You also need to include onboarding spends which will come after you’ve got that right candidate through the door – whether that’s on new equipment or training, for example. To find out more about how to calculate your ROI, check out this blog.
Company retention rate
When you’re recruiting you may want to think about your company’s retention rate. Itchy feet, a change in direction or not enough career progression; there are many reasons why someone may want to leave a job role. Although you may notice some telltale signs of employees getting restless, you may not be able to predict when they’ll leave a company.
You should monitor how many people are leaving throughout the year to understand if your recruitment costs are scaling because of a retention problem. If people keep leaving a company, it’s going to cost you more to rehire as you’ll need to factor in the loss of hours and finances invested in hiring the departing employee in the first place. This means that discovering a solution to the problem can be hard to distinguish, which is why analysing this sort of data is so important for recruiting.
Here are some key takeaways to remember:
- Calculate the time you spend recruiting between the announcement of the brief and the arrival of the candidate.
- The quality of your sources is very important, it is the key to not waste time
- Respect the time and order of the different steps of the recruitment process
- Assessing metrics are only valuable if you use the results to better your processes.