Business data is more readily available than ever before. It can be used to validate ideas, inform decisions and improve processes, including recruiting and hiring.
Hiring for an open position can be long and costly so it’s important to always be looking for opportunities to improve efficiency. If your company uses a hiring funnel or similar process, you can measure certain metrics to ensure you’re connecting with the right candidates, properly assessing them and hiring the best of the bunch – all while maintaining a steady pace and staying on budget.
Every company has it’s own, unique hiring process and definition of successful. That being said, keeping a close eye on these six metrics can help any business get better at hiring.
- Hiring sources
Knowing your best sources of applicants and new hires allows you to devote your resources to the right channels. An applicant tracking system, like Recruiterbox, makes it easy to generate reports that tell you where every candidate comes from.
It’s important to keep track of both total applicants and new employees for each hiring source. For example, job boards might send you the most applicants but only a few of those likely convert to new hires. On the flipside, a referral program might not generate a whole lot of candidates but the ones you do get are usually a solid fit and more likely to be hired.
Every business strives to have nimble processes and hiring is no exception. Knowing how many days a position is open before an offer is accepted helps you understand the efficiency of your hiring process.
A fast high process – and low time-to-hire – is generally the way to go. An open position means other resources are being diverted until it’s filled. However, it’s also important to be thorough when considering a candidate so you don’t have to repeat the process down the road. Watch you time-to-hire metrics to make sure your company hires at just the right speed.
It should come as no surprise that staying on budget and tracking spending is an important part of hiring. Cost-per-hire refers to the total spend for filling a specific role. It can include the costs of recruiter salaries, external recruiter fees, hiring technology, paid placements, travel and so much more.
If your company is not yet tracking cost-per-hire, you can work with your finance department to understand where you spend when hiring. You can even get granular and calculate the cost of time spent on team members interviewing candidates.
- Application completion rate & time
For most candidates, the hiring process starts with completing your online application. That means your application should get the information you need without asking for too much of the candidate’s time.
You can look at your application completion rate to learn how many candidates give up in the middle of applying. You can then drill down and figure out where in the process people throw in the towel so you can make the necessary adjustments.
It’s also a good idea to monitor the average application completion time. An application that takes more than five minutes can contribute to a low completion rate.
- Offer acceptance rate
It’s always unfortunate to find an ideal candidate, only to have them reject your job offer. Sometimes it’s them and not you but keeping an eye on your offer acceptance rate can help determine if something is wrong on your end.
People reject job offers for a number of reasons. Compensation is a common one but people also say no because of lengthy hiring process, a poor understanding of the role or a negative interview experience. It’s important to fix these issues so the best person for the job happily says “yes” when you make an offer.
- Hiring process feedback
One of the best ways to improve your hiring process is to ask the people who experience it for feedback. Many candidates take to Glassdoor post-interview to share their thoughts, especially when things didn’t go well. You can catch them before they go public by asking them to complete a hiring process assessment.
You can include questions that help you learn what works well and what needs improvement. Metrics are great for coming to data-informed conclusions but feedback directly from candidates takes out the guesswork.
A data-driven hiring process
The best businesses are always looking for ways to improve. By measuring these metrics and others relevant to your company’s hiring process, you can ensure you get a little better with each new employee you hire.
Source: Erin Engstrom
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