The Hiring Metrics You Need to Be Tracking
BerniePortal's HR 2020 Issues and Trends survey report identified recruitment in the competitive labor market as a top concern for HR pros in 2020. If you're focused on revamping your recruitment and hiring in 2020, you'll want to be able to definitively know if your efforts are successful. The best way to do this is by tracking and reporting on hiring specific metrics.
Here are some hiring specific metrics we suggest you track:
Average Time to Hire: This measures how long it takes you to hire a candidate for an open position.
Average Time to Fill: This measures the amount of time you need to fill a position—it differs from time to hire because you start calculating time to hire when a candidate submits an application, you begin calculating time to fill before the job is posted.
Average Cost per Hire: This metric determines the amount of resources you invest into finding and hiring candidates.
Recruiting Method Conversion Rate: Which recruiting methods are yielding the most offers and highest qualified candidates? Tracking Recruiting Method Conversion Rate will help you determine that.
Job Offer Acceptance Rate: How many of your offers made are being accepted? Keep an eye on Job Offer Acceptance Rate if this is a priority for you.
Let’s explore how exactly you can track those metrics we just discussed:
Average Time to Hire: Day Accepted - Day Applied = Time to Hire. Time to hire is calculated by Day Accepted minus Day Applied. So, you post a job on Day 1, your best candidate accepted on Day 30 and they applied on Day 15, you would calculate Time to Hire by 30 - 15 = 15. Total all the Time to Hire calculations and divide by the number of positions to find the average for your organization.
Average Time to Fill: Position Starting Point (0)+ Day Accepted = Time to fill. For this metric, you’ll want to decide what you consider the “starting point”...is it once the hiring manager submits the job for approval? Or is it after finance and HR approve the position? Once you nail that down, you can find time to fillby taking your starting point , or 0, and adding the number of days until your most qualified candidate accepts the position. So, if HR approves the position and then 45 days later a candidate accepts, your time to fill would be 0 + 45 = 45. To find the average for the organization, add all the time to fill numbers together, and divide by the number of positions.
Average Cost per Hire: Expenses / Number of Hires = Average Cost Per Hire To calculate cost per hire, tally all the expenses you spent on hiring divided by the number of hires for the year. When calculating your expenses, make sure to include items like recruiters’ salaries, money for referral programs and advertising.
Recruiting Method Conversion Rate: Recruiting Method Candidates / Recruiting Method Offers = Recruiting Method Conversion Rate. You’ll need to calculate each of your different recruiting methods separately for this metric. Let’s say, for example, you had 75 candidates submit applications via LinkedIn and you offered 10 of those candidates positions. 75 divided by 10 would be a Recruiting Method Conversion Rate of 7.5% for LinkedIn.
Job Offer Acceptance Rate : Number of Offers Made / Number of Offers Accepted = Job Offer Acceptance Rate. To calculate job offer acceptance rate, simply divide the number of offers you made over a given time period by the number of offers accepted.
This is a lot of information to keep track of!
When it comes to calculating and tracking recruitment KPIs, and HRIS platform like BerniePortal can come in handy. Instead of having to track down these different numbers and head counts, you can store all of this information in a single system, which will greatly decrease the time it takes you to pull these metrics and reduce human error when it comes to reporting.
You've found the perfect candidate and made a formal offer of employment...now what?...