CIO’s, HR leaders and recruiters never have to guess whether their recruiting efforts are working. By measuring the right metrics, talent acquisition leaders can make better hiring decisions that drive results for their company. We’ve created an infographic that outlines exactly which metrics every talent acquisition leader must track to increase employee engagement.
Talent acquisition is the lifeblood of any organization. Without it, you risk losing new business opportunities, innovating and growing your brand, and driving revenue to increase profitability. As talent acquisition takes on a more strategic role in the growth of an organization, it becomes increasingly crucial to measure the impact of the hiring processes on the business. Recruitment metrics are essential to measuring the impact of the talent acquisition function on the business.
While HR leaders can track basic hiring data to gauge success, other metrics provide invaluable insight into talent acquisition strategy, making it easier to make informed hiring decisions, and ultimately ensure the long-term success of your talent acquisition programs. The right recruiting metrics can help talent acquisition leaders ensure that they are keeping up with their competitors or making the right decisions when it comes to hiring. Over time, these metrics become an essential part of the measurement mix for any organization and can improve the decision-making process around what metrics to track and how to interpret them.
1. Efficiency is Key
Time to hire is a metric that gives talent acquisition leaders visibility into the performance of their team. This report shows how many days it takes your businesses—across teams, functions and geographies—to find the right candidate for a position.
Tracking time to hire helps talent acquisition leaders in spotting bottlenecks in the hiring process. Tracking time also enables talent acquisition leaders to identify positions that are hardest to fill, making it easier to design long-term strategies that incorporate best practices across the breadth of their organization.
2. Hiring costs
If you are looking to improve your company’s recruiting efficiency, you can do that by calculating the cost per hire. This is something that you will have to calculate for each position you want to fill, and there are a few key factors to consider.
3. How many employees can you retain?
The best way to retain top talent is to provide them with benefits and compensation packages that are competitive compared to their competitors. For example, an organization may save on recruiting and training costs if they offer better employee benefits; offer flexible work schedules; or offer educational programs about the industry in which their employees work.
Retention rates are a good indicator of an organization’s culture and employer brand. Studies have found that organizations with better career development programs and positive cultural attributes enjoy significantly higher retention rates. While attracting and finding the right candidate is a task in itself, retaining them is even harder. Metrics like time to hire and cost per hire are closely linked with retention rates.
4. Quality over quantity
Quality of Hire is the new way to measure the value of your company's employees. It collects data points that show an employee's potential in your organization and compares it to every other candidate you've hired, giving you a better understanding of who is going to make good on that potential in the workplace.