Are you keeping track of the key recruiting metrics? In 2022, here are the top five KPIs that every HR manager should be tracking.
According to studies, obtaining top-quality candidates is the largest issue for 76 percent of hiring managers. The fact that today's recruiting methods are more complicated than ever is self-evident. Talent acquisition managers must use a metric-driven approach to develop successful recruiting strategies.
However, because there are so many stages in the recruiting funnel to consider, determining the KPIs to track can be difficult. This is because you are in charge of everything from candidate sourcing to hiring manager satisfaction to hire quality.
With all of these processes in place, it's clear that recruiting teams will be able to track a variety of indicators to find the top candidates.
However, some may be more significant than others, as it all depends on how your company defines recruitment success.
Nonetheless, it's critical to have a list of the most relevant metrics to track; otherwise, you'll run out of time and resources tracking every metric you can find online, leaving you with no time to do the actual recruiting.
What are recruiting metrics?
Hiring managers utilize recruiting metrics to track their hiring success and improve the hiring process for prospects. These indicators aid in the evaluation of the overall recruitment process, revealing if the company is hiring the right individuals and employing the appropriate procedures.
These statistics, also known as recruiting metrics or staffing metrics, are crucial because they ensure that the recruitment process is diverse, inclusive, and fair for all candidates.
Most important recruitment metrics of 2022
Time to fill:
The time it takes to find and hire a new candidate is referred to as time to fill. It is determined by the number of days it takes from posting a job opportunity to sending an offer letter to a successful applicant.
Supply and demand are two of the most important factors that determine this statistic. Industry demands and the speed with which the hiring department functions are the other important drivers.
This is a crucial number to track because it determines how efficient your recruiting process is. Benchmarking based on your own experiences is a fantastic place to start as you figure out how long it takes to acquire candidates, screen them, conduct interviews, and finally give over an offer letter.
In this manner, if you find that it takes you longer than the average duration to fill similar positions in similar industries, you can simply work on the best ways to improve your procedures.
Cost Per Hire:
Keeping track of the overall money spent during any recruitment process is critical. It's computed by dividing the total cost of new hiring by the number of new hires.
This is a crucial indicator to track because it reveals how much you spend on single and many hiring and your average cost. Setting cost-effective hiring techniques makes it simple to create realistic future hiring budgets, minimize wasteful costs, and save resources.
Hires per month:
How many new employees does your company require? In a month, how many new employees are onboarded on average?
As they offer a picture of the company's growth, this is one of the universal indicators that recruitment teams track.
Once you've tracked the number of recruits per month for a given company, you'll be able to create a solid strategic strategy based on the company's size and hiring capabilities. Furthermore, current market developments and the nature of the roles must be taken into account.
Sources of hire:
The numerous channels via which your fresh prospects are sourced are considered in the source of hire.
This metric is useful since it directs you to the sites where you should spend more time because they are thought to deliver better, higher-quality applications. Knowing this information allows recruiting managers to better oversee their budget allocation and planning and determine where they should concentrate their efforts.
Understanding prior applicant pipelines will assist you in predicting future hiring patterns.
The attrition rate is the percentage of employees who leave a company in a certain period.
Replacing outstanding talent is expensive. You must factor in additional recruiting and hiring expenditures, as well as the resources required to onboard new employees. You must not only attract but also retain excellent talent.
It's a good idea to keep track of the organization's turnover rate to see if job descriptions and postings are communicating expectations appropriately. It also aids in determining whether hiring teams are clear about the primary features of the job during the recruitment process.
Focusing on metric-driven recruitment:
Given the complexity of today's recruiting, metric-driven recruitment processes are a prerequisite. With the KPIs listed above, you can quickly establish a high-performing recruitment function that regularly delivers top people to your company.
It's a no-brainer that this entire procedure takes up far too much of your time, time that could be better spent on other vital tasks, such as running your business. Leave it to metric-driven recruiters and staffing firms like NVR to discover, hire, and retain elite people that will propel your business forward.