Recruiting metrics

Last updated

Recruitment metrics are a standard set of measurements used to manage and improve the process of hiring candidates into an organization. Candidates can be existing employees within an organization, people entering the workforce for the first time or employees interested in job opportunities outside their current organization.

Contents

Many recruitment metrics are used by organizations to gain valuable insights on potential candidates during the recruitment process:

Standard Recruitment Metrics

Speed Metrics

Metric TypeDefinitionFormula
Time to Fill (TTF)The time it takes to identify and recruit a candidate or an existing employee to fill a vacant position within an organization. Fill is defined as the step in the recruiting process where the candidate has cleared the background and/or reference checks. This metric is generally used for the calculation and measurement of hiring external candidates vs. existing internal employees within an organization.The clock starts on the metric calculation the moment the requisition is approved by the hiring organization. The clock stops on the metric calculation the moment the candidate clears the background and, if necessary, reference checks.
Time to Accept (TTA)The time it takes to identify and recruit a candidate or existing employee to accept a position within an organization. Accept is defined as the verbal or written acceptance of the job position being presentedThe difference in time between the moment the requisition is approved by the hiring organization and when the candidate accepts the verbal or written job offer.
Time to Start (TTS)The time it takes to identify and recruit a candidate or existing employee to start in the new position that they have accepted within an organization.The clock starts on the metric's calculation the moment the requisition is approved by the hiring organization and stops based on the candidate's target or real start date.
Recruiting vs Business Consideration (RvB)Compares how many business days the recruiting function takes to identify and screen the candidate vs how many business days the hiring manager takes to interview and choose a candidate.The first part of the calculation begins the moment the requisition is approved and stops once the recruiting function submits a candidate to the hiring organization for consideration and review. The second part of the metric is measured by the time between the business's decision to hire the candidate, and the candidate's acceptance of the job offer.
Time in Workflow Step (TWS)Time a candidate spends in each of the workflow step of the Applicant Tracking System (ATS) in business days. Examples of standard ATS step are: Candidate Application; Recruiter Screening; Submission to Hiring Manager and review; Initial interviews(s); Final Interview; Offer; Background Checks; Hire.This calculation calculates the difference between when a candidate first enters a workflow step and when that candidate leaves that workflow step. Example: Candidate applies to a job opening on January 1 and then is moved by a recruiter to the Recruiter Screen workflow step in the ATS on January the 4th. The time in the candidate application step is tabulated as 4 days.
Applicant Cycle Time (ACT)The time a candidate spends in the selection process for an opening. This metric only measures the successfully hired candidate and does not account for any other candidates. It is a good measure of the efficiency of the recruiting team once a qualified candidate is identified.Shown in days, it is the difference in time between the successful candidate's application submission and the moment the candidate accepts the verbal or written job offer.

Quality Metrics

Metric TypeDefinitionFormula
Submissions to Business Acceptance Percentage (SBA)Number of candidates that are submitted to the business by the recruiting function over the requirements of the position that are accepted by the business as a percentageExample: Recruiting function submits 10 candidates to the business against the requirements of the role and the business accepts 7 that they will move forward to the next step of the recruiting workflow. SBA = 70%
First Year Quality (FYQ)Compares a quality data point on the recruiting functions ability to present a quality number of candidates to the business/organization for consideration as a percentage of those that the business accepts to proceed forward in the recruiting workflow process in combination with the organization's ability to retain candidates that have started their new position and are still with the organization after their first twelve months of employment. Attrition is defined as employees who have left the organization either a) On their own accord or b) Were terminated from employment from that organization within the first twelve months of employment. Also referred to unmanaged or managed attrition.Number of candidates submitted to the business from the recruiting function that they accept as a percentage (SBA Metric)+ percentage of candidates that do not leave in their first twelve months of employment divided by these two data points. Example: Data Point 1: Recruiter submits 10 candidates to the business who accepts 8 = 80% submission quality (SBA).

Data Point 2: In the previous fiscal year, 10% of candidates hired left the organization within their first year of employment = 90% Retention. 80% + 90% = 170 divided by two data point indicators = 85% First Year Quality (FYQ)

Offer Acceptance Rate (OA)Compares the number of candidates that are presented a written or verbal job offer vs the percentage of candidates that accept the job offerNumber of candidates presented the offer who accept the offer as a percentage. Example: 10 Candidates are presented a job offer with 8 accepting the job offer = an 80% OA
Submission to Hire Ratio (SHR)A calculation that determines the number of candidates that are submitted to the business to produce a hire as a ratio. The more effective the recruiting function is as submitting quality candidates against the position requirement the lower the SHR ratio will be.Number of candidates that are submitted to the business for consideration divided by the number of hires as a ratio output metric. Example: Recruiting function submits 9 candidates to the business to review against the position requirements resulting in 1 hire. SBA = 9:1
Application Drop off Rate (ADR)A percentage metric to determine the quality of the candidate application process and experience. A good candidate application experience should determine a higher percentage of candidates starting and completing the application processThe ratio of the number of candidates that start the job application and the number of candidates that complete the online application as a percentage. Example: 100 candidates start an application for a position but only 40 complete the application process. ADR = 60%
Hiring Manager SatisfactionA standard set of questions that gets asked of Hiring Managers within an organization by the Recruiting function on their level of satisfaction around some or all of the following:
  • Overall experience working with the recruiting function during the hiring process
  • Quality of candidates submitted
  • Speed and responsiveness
  • Value added to guide and help the business through the hiring process
Variations exists in how organizations produce a measurement of outcome from the overall scoring system being used from leveraging a net promoter score approach to a Likert Scale approach of 1 to 7, with 1 being extremely satisfied to 7 being extremely dissatisfied.
Candidate SatisfactionA standard set of questions that gets asked of candidates during or after the hiring process about their level of satisfaction around some or all of the following:
  • Overall experience working with the organization during the hiring process
  • Overall experience working with the recruiting function during the hiring process
  • Satisfaction with the technology and experience used during the application process
  • Speed and responsiveness
  • Value added to guide and help the candidate through the hiring process
Variations exists in how organizations produce a measurement of outcome from the overall scoring system being used from leveraging a net promoter score approach to a Likert Scale approach of 1 to 7, with 1 being extremely satisfied to 7 being extremely dissatisfied.

Productivity Metrics

Metric TypeDefinitionFormula
Source of Application (SoA)A recruiting metric to help determine the value of potential investments made by an organization in each of their different initiatives around the attraction of candidates applying their job opportunities. Each of these initiates are traditionally grouped into candidate source categories in an Applicant Tracking System (ATS). Examples of traditional candidate source of application categories are: Employee Referrals; Job Boards; Organization's Career pages; Social Media; 3rd Party Staffing Agencies; Career Fairs; Internal Employment sitesTotal number of candidate applications as a percentage, grouped by source category. Example: During a 12-month period, an organization had 5,000 candidates apply to their positions, where 1,000 of those candidate applications came from Job boards. Job boards provided 20% of the applications.
Source of Hire (SoH)A recruiting metric to help determine the value of potential investments made by an organization in each of their different initiatives that ultimately leads to a candidate being hired. Each of these initiates is traditionally grouped into candidate source categories in an Applicant Tracking System (ATS). Examples of traditional candidate source of application categories are: Employee Referrals; Job Boards; The organization's Career pages; Social Media; 3rd Party Staffing Agencies; Career Fairs; Internal Employment sitesTotal number of candidates hired as a percentage broken out by percentage of each source category. Example: For a 12-month period an organization had 1,000 candidates hired to their positions where 300 of those candidate applications came from Employee Referrals. Employee referrals influenced 30% of the applications.
Full Funnel Throughput (FFT)Similar to the Submit to Hire Ratio (SHR), this ratio metric as a calculation to determine the overall effectiveness of each step of the recruiting workflow, also referred to as the recruiting funnel throughput. An example of major ATS workflow steps and each sequential workflow step [Applications: Recruiter Screen: Submittal to Hiring Manager: Business Interviews: Final Interview: Offer: Background Checks: Hire]. The power of this metric comes into play when you start evaluating the Funnel Throughput efficiencies of multiple requisitions by certain groupings to determine an average by workflow step for that sample group. An example of sample groups: Similar job family positions; Positions in certain geographies; Positions in different organizational business units; Positions by recruiters; Positions grouped by hiring managers. The power of this metric comes into play when you start evaluating the year by year comparisons and/or multiple requisitions by certain groupings to determine an average by workflow step for that sample group.The metric's calculation determines how many candidates enter the first step of the recruiting workflow divided by how many candidates proceed to the next sub sequential step of the recruiting workflow as a ratio. . Example: For one position receives 1,000 Applications that leads to 100 Recruiter Screens which results in 20 candidate submissions to the hiring manager, resulting in 10 interviews and 5 final interviews making 1 offer resulting in 1 hire. The FFT Metrics, in this case, would look like this:
  • 10:1 (1,000 applications to 100 recruiter screens)
  • 5:1 (100 recruiter screens to 20 submissions)
  • 2:1 (20 submissions to 10 hiring manager acceptances)
  • 1:1 (10 hiring manager acceptances to 10 business interviews)
  • 2:1 (10 business interviews to 5 final interviews)
  • 5:1 (5 final interviews to 1 offer)
  • 1:1 (1 offer to 1 hire)
Candidate Withdrawal Reasons (CWR)A metric calculating why candidates do not want to proceed forward with during the interview process against a requisition. The outcome is a grouping of common reasons why candidates are not interested in proceeding. Examples of potential candidate withdrawal reasons: Too much travel required; Base salary too low; Organization's benefits package; Relocation; Role requirements not motivating enough; Organization's external brand. This is useful to assist organizations in determining trends that indicate areas that need improvement. Example comparison groupings: Similar job family positions; Positions in certain geographies; Positions in different organizational business units; Positions by recruiters; Positions grouped by hiring managersTotal number of candidates who withdrew from the recruiting process as a percentage breakout by each of the candidates withdrew groupings. Example: 500 candidates withdrew from sales positions for an organization in a fiscal year.
  • 150 (30%) said too much travel required
  • 100 (20%) said base salary too low
  • 20 (4%) said Organization's benefits package
  • 80 (16%) Relocation
  • 100 (20%) Role requirements were not motivating enough
  • 50 (10%) Organization's external brand
Req Cancellation Rate (RCR)A metric that determines how much time as an overall percentage is spent by the recruiting function working on requisitions that get canceled vs the time spent on requisitions that get filled. A high percentage of time spent by a recruiting function working on positions that get canceled creates inefficiencies in the organization's recruiting process.Total number of filled requisitions plus canceled requisitions that are worked on during a fiscal year divided by the number of those requisitions that are canceled. Example: A recruitment process fills 5,000 requisitions a year with an additional 1,250 requisitions being canceled. RCR = 20%
New vs Replacement Req Type (NvR)Similar to the RCR: how much time as an overall percentage is spent by recruitment working on requisitions that are net new growth positions for an organization vs time spent on requisitions that are backing an existing position where the employee left the role.Total number of requisitions that are created during a fiscal year that are net new growth positions as a percentage out of 100 vs the percentage of requisitions that are created that are backfilling an employee. Example: 10,000 requisitions are created in a fiscal year where 6,000 (60%) are net new growth positions vs 4,000 (40%) are backfilling and employee.

Cost Metrics

Metric TypeDefinitionFormula
Recruiting Resources Cost to Acquire (CTA)A metric that identifies the total cost of recruiting resources that are required by an organization to fill all the requisitions in a fiscal year. Note: This metric is a simpler derivative of total Cost Per Hire metrics that try to capture all recruiting related expenses and investments involved in hiring candidates.A recruiting department's total resource costs, including full-time employees, contractors, and temps, divided by number of candidates hired for a fiscal year. Example: An organization spends 1 million dollars a year on total resource costs and they fill 400 requisitions in a fiscal year. 1 million divided by 400, CTA = $2,500

Variations on Metrics

  1. Time based metrics can be measured in business or calendar days related to the nature of the hiring organization. Example: Hospitals may hire on weekends, so time based metrics being measured in calendar days will potentially give more insight. However, more traditional organizations are better served by measuring time based metrics with business days.

See also

Related Research Articles

Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms include manpower, labor, or personnel.

Salesforce management systems are information systems used in customer relationship management (CRM) marketing and management that help automate some sales and sales force management functions. They are often combined with a marketing information system, in which case they are often called CRM systems.

Staffing is the process of finding the right worker with appropriate qualifications or experience and recruiting them to fill a job position or role. Through this process, organizations acquire, deploy, and retain a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness. In management, staffing is an operation of recruiting the employees by evaluating their skills and knowledge before offering them specific job roles accordingly.

<span class="mw-page-title-main">Recruitment</span> Process of attracting, selecting and appointing candidates to a job or other organization

Recruitment is the overall process of identifying, sourcing, screening, shortlisting, and interviewing candidates for jobs within an organization. Recruitment also is the process involved in choosing people for unpaid roles. Managers, human resource generalists and recruitment specialists may be tasked with carrying out recruitment, but in some cases public-sector employment, commercial recruitment agencies, or specialist search consultancies are used to undertake parts of the process. Internet-based technologies which enhance all aspects of recruitment are now widespread, including the use of artificial intelligence (AI).

Human resource management is the strategic and coherent approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems. HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and employee benefits systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws.

<span class="mw-page-title-main">Job interview</span> Type of interview

A job interview is an interview consisting of a conversation between a job applicant and a representative of an employer which is conducted to assess whether the applicant should be hired. Interviews are one of the most common methods of employee selection. Interviews vary in the extent to which the questions are structured, from an unstructured and informal conversation to a structured interview in which an applicant is asked a predetermined list of questions in a specified order; structured interviews are usually more accurate predictors of which applicants will make suitable employees, according to research studies.

<span class="mw-page-title-main">Workforce productivity</span> Concept in economics

Workforce productivity is the amount of goods and services that a group of workers produce in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity, often referred to as labor productivity, is a measure for an organisation or company, a process, an industry, or a country.

<span class="mw-page-title-main">Employment agency</span> Organization which matches employers to employees

An employment agency is an organization which matches employers to employees. In developed countries, there are multiple private businesses which act as employment agencies and a publicly funded employment agency.

Sourcing is a talent acquisition discipline which is focused on the identification, assessment and engagement of skilled worker candidates through proactive recruiting techniques. Professionals specializing in sourcing are known primarily as Sourcers; but also Internet Recruiters, Recruiting Researchers or Talent Scouts.

<span class="mw-page-title-main">Onboarding</span> Management jargon for introducing new employees to employers policies and practices

Onboarding or organizational socialization is the American term for the mechanism through which new employees acquire the necessary knowledge, skills, and behaviors to become effective organizational members and insiders. In standard English, this is referred to as "induction". In the United States, up to 25% of workers are organizational newcomers engaged in onboarding process.

E-HRM is the planning, implementation and application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.

Workforce Sciences is an area of workforce measurement and management designed to streamline hiring of personnel in organizations. An emerging discipline, it focuses on the empirical determination of the workforce and business impact of the people side of business -- in order to help organizations find the "ideal" set of employees.

Employee retention is the ability of an organization to retain its employees and ensure sustainability. Employee retention can be represented by a simple statistic. Employee retention is also the strategies employers use to try to retain the employees in their workforce.

Competency-based recruitment is a process of recruitment based on the ability of candidates to produce anecdotes about their professional experience which can be used as evidence that the candidate has a given competency. Candidates demonstrate competencies on the application form, and then in the interview, which in this case is known as a competency-based interview.

Human Resource (HR) metrics are measurements used to determine the value and effectiveness of HR initiatives, typically including such areas as turnover, training, return on human capital, costs of labor, and expenses per employee.

Shift-based hiring is a recruitment concept pioneered in Singapore that hires people for individual shifts, rather than hiring employees before scheduling them into shifts. Originally, it was intended as an efficient way to schedule shift-based part-time work, but it is now known that this concept can be applied to any job that requires a number of consecutive hours of commitment as a shift. This hiring concept focuses on employing workers for a particular shift on that particular day, rather than focusing on employing a worker to work recurrent shifts that can become part-time or full-time work, although the latter can be a result of employing a worker to work shifts that run at the same timing periodically. Every shift or a group of recurring shifts may be a unique job posting.

Recruitment marketing refers to the inbound strategies and tactics an organization uses to find, attract, engage, and nurture talent before they apply for a job, also called the pre-applicant phase of talent acquisition. It is the practice of promoting the benefits and value of working for an employer in order to recruit talent. It is analogous in many ways to corporate marketing, and is extremely similar to employer branding except recruitment marketing relates to trackable initiatives that drive awareness, engagement and conversion of applicants versus someone's impression of working at a company. Of course others see employer branding as a subset of recruitment marketing, in addition to extending the reach and exposure of career opportunities through search engine optimization (SEO), building and nurturing candidate relationships through talent communities, and the management of messaging and advertising of talent acquisition efforts.

Topgrading is a corporate hiring and interviewing methodology that is intended to identify preferred candidates for a particular position. In the methodology, prospective employees undergo a 12-step process that includes extensive interviews, the creation of detailed job scorecards, research into job history, coaching, and more. After being interviewed and reference-checked, job candidates are grouped into one of three categories: A Players, B Players, or C Players. A Players have the most potential for high performance in their role while B and C Players may require more work to be successful. The methodology has been used by major corporations and organizations like General Electric, Lincoln Financial, Honeywell, Barclays, and the American Heart Association.

A human resources management system (HRMS) or Human Resources Information System (HRIS) or Human Capital Management (HCM) is a form of Human Resources (HR) software that combines a number of systems and processes to ensure the easy management of human resources, business processes and data. Human resources software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payroll, recruitment, benefits administration, time and attendance, employee performance management, and tracking competency and training records.

<span class="mw-page-title-main">Artificial intelligence in hiring</span> AI application in work environments

Artificial intelligence (AI) in hiring involves the use of technology to automate aspects of the hiring process. Advances in artificial intelligence, such as the advent of machine learning and the growth of big data, enable AI to be utilized to recruit, screen, and predict the success of applicants. Proponents of artificial intelligence in hiring claim it reduces bias, assists with finding qualified candidates, and frees up human resource workers' time for other tasks, while opponents worry that AI perpetuates inequalities in the workplace and will eliminate jobs.

References