Business Insider published an article titled “5 Recruitment Metrics Every HR Professional Should Report” yesterday, and it offers some really great insight for HR pros during the hiring process. By measuring some aspects of the recruitment process, you can figure out what’s effective, and not so effective, when you’re selecting candidates for a position. I decided to narrow it down to 4 because I eliminated quality of candidate, which seems a bit too hard to track for my taste.
1. Amount of applicants.
More is not always better when it comes to numbers of people applying for one position. Each industry and position generally has an average number of applicants, and that’s a good standard to go by. If you have significantly more people applying than what is normal, that’s a good indicator that not everyone applying is actually qualified. If you find you have an abnormal amount of applicants for a position, you may want to consider rewriting your job description to be more specific and detailed about the required qualifications, or review your methods of advertising.
2. Time it takes to hire.
Tracking the time it takes to hire someone for any given position is a very easy thing to do. SHRM reports that it takes smaller companies about 29 days to hire, and larger companies (1,000 people or more) about 43. Time-to-hire is a good indicator of how thoroughly, you are searching for and vetting out candidates. If you’re a speed hirer who always gets it done in 3 weeks or less, you may want to take some more time to really search for the right person, and make sure not to jump the gun and hire the first qualified person you like. At the same time, if it’s taking you 8 weeks every time, maybe you need to cool your jets a bit and be a little less critical. Also look at other aspects of the hiring process that may be slowing it down.
3. Cost of a hire.
Hiring can be an expensive process and it’s best to keep the costs low, but at the same time if you spend too little you run the risk of hiring the wrong person, and/or doing a poor job of training them. According to that same SHRM report, small companies spend about $3,079, on hiring new employees, where as larger companies end up spending around $4,285. It’s good to keep these numbers in mind and shoot for about the same. If they greatly exceed that number, or are much lower, then you have problems. Make sure to not overspend, and break the bank, but also not to keep costs so low that your employees don’t get the proper training an on-boarding. It’s a delicate balance, which is why it’s important to know the average, and to track your spending.
4. How applicants find the position.
An important question many ask on an application is “How did you hear about this job?” By tracking the methods in which applicants found out about the position, you can know exactly how many applicants each method drew, and the quality. If you use craigslist for instance, and get hundreds of unqualified applicants, but use Linkedin and get 20 great ones, you know that Linkedin is a better bet in the future. That’s why it’s important to not only ask people where they heard about the job, but to report these findings so you know what works best.