It takes a village to design a strong recruitment process. From screening processes & paperwork to marketing campaigns for job openings, behavioral assessments, and interviewing potential fits, many departments come together to find top talent. With so many hands in the pot, it's critical to identify and track the KPI's responsible for streamlining your recruitment process so you can find the perfect match, faster. There are dozens of KPI's to choose from but we've selected the top six to focus on for a great candidate experience.
How do you measure hiring success?
Time to hire
# of days (Date candidate was found - Date offer was accepted)
Time to hire is great for determining the efficiency of your hiring process. When looking through the flow of the hiring pipeline, you can identify points of friction that are slowing down recruitment. Slows in the pipeline impacts not only your team's time and resources but also the caliber of candidates. Top talent is more likely to get snapped up with a quick hiring process - if your company takes too long to make an offer, you may lose out on the best team fit. Or if the application process is too lengthy, it may take longer to receive enough qualified candidates willing to complete the initial forms. Time to hire gives an overview of the smoothness of your hiring process and invites you to examine the influential factors. 41 days is the average time for filling a position and can be a good initial goal for your organization (Workable).
Offer acceptance rate
# of interviews / # of accepted offers
This is a strong indicator of effectiveness. Are your recruiters able to identify candidate deal-breakers early on? Is your great candidate experience driving more people to accept positions? How well can your recruiters speak to your company culture and position requirements to find those that are the best fit? The offer acceptance rate reflects the strength of your candidate experience and brand reputation. Today, most companies have an offer acceptance rate of 69% (NACE). It's critical to track this KPI and design improvements for the avenues that lead candidates to accept a role.
- Before applying for a job, 82% of people consider the company’s reputation and employer brand (CareerArc).
- Even with a bigger paycheck, half of all candidates will turn down a job offer from a company with a bad reputation (Glassdoor).
Cost per hire
Total recruiting cost / # of hires
There are a lot of expenses funneled into the hiring process. Companies are faced with the cost of job board postings, billboards & advertisements, behavioral assessments, administrative tasks, screenings, and more. This KPI identifies the processes that can be improved or outsourced, to save your company resources. Perhaps an applicant tracking system would cut down on costs? Or maybe it's time to reevaluate your job board strategy? The average cost per hire is $4,700 (Zippia). Partnering with a talent agency can help your organization fill in the gaps and get the most out of your recruitment budget. With expert recruiters, HR professionals, and marketing strategists dedicated to filling your positions, recruiting agencies like HTI help you achieve successful hiring events.
Sourcing channel efficiency
Total # applicants / # hires through specific channel
This KPI shows you which avenues are bringing in the highest amount of candidates and which are bringing in the most qualified ones. By understanding the applicant flow by each channel, you can evaluate whether the channel cost should be adjusted. Shuffle your budget to support the strongest channels, or implement programs that utilize them more. For example, if a majority of your hires are coming from referrals, expand upon your referral program to entice your internal workforce to recommend more qualified candidates. The best channels will differ based on industry and company, so find the pathways that work best for your needs.
Quality of hire
(Hiring metric + hiring metric + hiring metric) \ total # of hiring metrics
Your recruitment team is utilizing a lot of resources to fill positions - so make sure that the new hire is worth it! This KPI takes on a more subjective approach because you have to determine the features of a quality hire at your organization. These factors could be productivity, training required, engagement, satisfaction, retention, culture fit, and many more. It's up to you to decide what aspects to use for your benchmarks, and how many to include. We recommend using around four categories to measure an employee's success in their role. While this KPI does take longer to observe and calculate, it gives invaluable information about the candidate characteristics that are most vital to your organization in the long run.
Candidate net promoter score
% of promoters - % of demoters
This KPI helps you hone in on recruitment practices that deliver the best candidate experience. To gather data for your organization's NPS scores, you must send out candidate experience surveys. Those who rank their experience 6 or lower are considered 'demoters'. Those ranking their experience 9 or higher are 'promoters'. In this digital age, their feedback is especially critical. Candidates are researching company cultures and application processes prior to sending in their resumes. This means other people's experiences with your company influence whether candidates want to apply.
Who you hire is a big deal. And how you hire them is critical. HTI can help you create a streamlined recruitment process to help you attract top talent that stays. Our dedicated departments focus solely on recruiting - so your HR managers can tackle other company needs. Ready to design a better hiring process?