Tracking these talent acquisition metrics can help recruiters save time and money by focusing their efforts on the most productive recruiting channels. It can also help to identify problems in the process, such as a low submission-to-interview ratio. Quality of hire (QoH) is among the most difficult-to-measure talent acquisition metrics. Still, it’s an important metric to track because it can reveal how much value a new employee brings to an organization.
1. Quality of Hire
Often, traditional recruiting metrics like time to hire and cost per hire tell only half the story of a company’s performance. The other half lies in the quality of your new hires and the impact of those hires on their company’s success. This metric is tricky, especially when comparing candidates from different sources. This is because the number of interviews and other factors can influence candidate quality.
Additionally, it can be challenging to gauge the quality of a new hire once they have been in the role for a year or more. There are several ways to calculate the employment rate, and finding a solution for your organization will take some experimentation. By finding the right mix of indicators, your quality of hire metrics will provide an invaluable guide for talent acquisition. This may help you leverage these metrics to make informed decisions about recruiting strategies and hiring budgets.
2. Time to Hire
Time to hire is one of the most critical talent acquisition metrics to track. It measures the time between creating a job requisition and the hiring team offering a candidate a position. Time to hire is a crucial indicator of your recruiting processes and should be reduced wherever possible. Another way to measure your recruiting process is by looking at the quality of your hires.
This metric can be tracked by calculating the percentage of new hires that are high performers within their first year of employment. A disappointing first-year performance can cost a company thousands of dollars in recruitment and training costs.
Similarly, tracking attrition rates can help you identify any issues with your hiring process or culture. If your new hires leave the company shortly after being hired, it’s likely because they were either not a good fit for the role or found a better opportunity elsewhere. Keeping an eye on these metrics will allow you to improve your recruitment process to attract and retain top talent.
3. Source of Hire
One of the essential talent acquisition metrics to track is the source of hire. This metric allows HR leaders to see which recruiting channels are working and which are not. By knowing which recruitment sources bring in quality candidates, organizations can funnel more resources into those channels and reduce or shut down those not producing results. For example, if you find that employees are the most effective source of hire, you can start an employee referral program and focus more resources on this channel.
Alternatively, if an ineffective career site needs more candidates, you should revamp your career website to increase its effectiveness. Another key metric to track is the quality of hire, which is the percentage of candidates hired who receive high first-year performance ratings. A single bad hire can cost a company tens of thousands of dollars in direct and indirect costs, so avoiding this mistake is crucial. Using an ATS system with embedded metric dashboards can help you optimize your recruiting process and improve the quality of your new hires.
4. Time to Retain
The time to retain is the time that passes between a candidate becoming a new hire and when they’re given their first performance review. This metric provides insight into how well your HR team can screen, evaluate, and interview candidates and how responsive you are during the hiring process. If you have a long process, it can lead to candidates losing interest and accepting other roles before they’re hired. Plus, the longer it takes to fill a position, the more expensive it can be for your company, as current employees may need to cover duties.
Tracking your recruiting metrics is essential for measuring talent acquisition success. Having the correct data can help your teams make informed decisions about improving their processes and ultimately save your company money. By focusing on key recruiting metrics, your team can attract the best talent and accelerate hiring time. With the right solution, you can ensure that all the information you need is easily accessible, allowing you to start analyzing your recruiting data.
5. Employee Turnover
Employee turnover is one of the most critical talent acquisition metrics to track. When an employee leaves the company, it can cost the business significant time and money to find a replacement, as well as lost productivity, morale, and the intangible benefits of having employees who fit into the culture. A high turnover rate can indicate that the job description incorrectly aligns with the role or that the onboarding process isn’t practical. Alternatively, it could also mean the company isn’t attracting enough quality candidates.
Measuring the source of hire is a standard recruiting metric. It helps organizations to evaluate the effectiveness of their recruitment channels (such as the company website, social media, third-party job boards, and employee referrals). It is a good idea to measure how many people start the application process and how many complete it. This metric can also help identify any issues with the application process. For example, if only some candidates finish the application, it could suggest that the information asked for is too much or the application process takes too long.