Recruitment is a big investment as it requires getting your job postings before the right candidates, interviewing skilled people and finally onboarding the best ones. Since this process requires so much time and investment, hiring professionals must ensure that their time, energy and money are going in the right direction. Many hiring professionals do not have recruitment KPIs high on their list.
However, they are crucial and can help the business learn many things they may not know beforehand. From using resources effectively to enhancing processes and winning over more management and the best talent, recruitment KPIs can be an important tool for achieving success with your talent acquisition goals and objectives.
Continue reading the blog to learn about KPIs in recruitment, their significance and the top recruitment KPIs that top companies use globally!
What are recruitment KPIs?
KPIs in recruitment are specific metrics designed to measure the strength and effectiveness of your overall recruitment process and recruiting team. You can use KPI for HR executive to reveal areas of improvement and reflect the value and return on investment of specific initiatives. Simply put, recruitment KPIs are a key piece to evaluating and planning out your recruiting strategy and are tied to the goals of your company.
They use data to provide insights into different business areas and track various stages of the recruitment process to help you make informed decisions about where to utilize your time and resources. For example, KPI for recruitment manager can help get insights into the time taken to fill job positions.
On the other hand, recruiters can use these KPIs as a quality indicator of the candidates. Recruitment KPIs can form part of your recruiting strategy analysis and planning. Remember, whenever you are looking at your KPIs, ensure you know what you are comparing them to. Take a look at recruitment benchmarks and compare your results with previous records.
Why are recruitment KPIs important?
Recruitment KPIs matter because they give insights into everything your company does to find the best candidates from the large talent pool. They help evaluate what is working and what is not so you can better utilize your time and money on recruiting initiatives. Here are some reasons why recruitment KPI for recruitment manager are important:
-
- They reflect the goal, achievements and success, which is best for management visibility.
-
- They access the satisfaction of hiring professionals
-
- They can help you compare present results with historical data
Which are the top recruitment KPIs?
Selecting the most important recruitment KPIs for recruitment managers can be difficult as there are so many to choose from depending on your objectives. However, there are some standard KPIs which can work really well for all organizations:
-
- Cost per hire
Cost per hire is the total recruitment budget and spending to get a new candidate on board in your organization. It involves advertising the job vacancy on various job boards, referral fees, onboarding and interviewing time, agency fees, employee training and new equipment costs (if any).
Calculating cost per hire makes it easy to identify the most expensive or budget-friendly recruiting sources and platforms. This, in turn, can help companies make strategic decisions regarding allocating resources for talent acquisition goals and objectives.
-
- Time to Hire
The famous quote “time is money” really holds true when it comes to recruitment. The longer the time taken to fill a position, the more the money and productivity companies stand to lose. It makes time to hire a critical KPI for objectives of talent acquisition that measures the time between posting a job and onboarding an employee.
You can keep track of this metric to understand the efficiency of your recruitment process and identify areas of improvement. According to research, 57% of job seekers lose interest in a role when the hiring process takes longer than expected. This figure highlights the need to elevate your time-to-fill game.
-
- Quality of hire
Another crucial indicator of recruitment success is the quality of hire. Did you know? 39% of talent leaders rank it as their priority because they believe that quality of hire is the most important recruitment KPI for HR executive for assessing performance. After all, there is no point in hiring new employees if they do not meet your expectations and needs.
This metric assesses how well new hires perform in their respective roles and how long they stay in the company. In other words, it tells you how successful you were in finding the right candidate for the open role.
However, measuring this recruitment KPI can be difficult as it involves quantitative and qualitative factors. You can simplify this process by creating a profile of the ideal candidate and combining quantitative metrics such as performance ratings and productivity data.
-
- Candidate experience
Candidate experience is the perception of job seekers throughout the entire recruitment cycle, from initial contact to successful hiring. 58% of candidates declined a job offer due to poor candidate experience. It means many candidates believe that the overall recruitment experience is an important factor in their decision to work with an organization.
With that being said, measuring and enhancing candidate experience throughout the hiring process is important. You can do so effectively by conducting post-interview surveys, collecting feedback on the application process and evaluating communication between recruiting teams and candidates.
Related: Why Companies are Investing in Interview Services to Improve Candidate Experience
-
- Sourcing channel
Diversifying where you find talent is crucial for effective recruitment. You can make hiring smooth and learn how to use resources more wisely by understanding how different sourcing channels work.
For this, look at key factors such as the number of applicants each channel brings in, the quality of those applicants and how many result in hires. It helps you focus on the most effective sources and, at the same time, maintain a steady flow of top talent.
Final thoughts
In the ever-evolving job market, new technologies are coming out every day. As a result, hiring professionals should come up with innovative ways to attract top talent. That’s where objectives of talent acquisition and interview as a service platform come in handy. Both of these things together play a significant role in guiding the recruitment process. Rely on the key recruitment KPIs discussed in this blog, as they will surely help you track the success of your talent acquisition goals and objectives. Lastly, if you are looking for the best interview as a service platform, look no further and choose Vprople. Contact us today to learn how we can help you up your recruitment game!
