Essential HR Metrics Hiring Managers Need To Track In 2022
- January 14th, 2022
Any data-driven hiring plan has to include recruiting metrics. Despite this, the number of metrics and data points that recruiters may track seems to be limitless. Which metrics are most important, and what data should you pay attention to make the best recruiting decisions?
We’ve broken down the most crucial recruiting metrics you should follow to ensure your hiring team uses the correct data. But first, let’s define recruiting metrics and their importance in attracting top personnel.
What Are Recruiting Metrics?
Recruiting metrics are a collection of measures or data points that organizations use to monitor, manage, and improve the hiring of candidates.
These metrics, when utilized correctly, may assist your hiring team in assessing your recruiting process, the performance of your hiring strategy, and if you’re employing the ideal people for your firm.
These metrics may also be linked to a recruiting matrix to verify that your hiring process is diverse, inclusive, and fair to all applicants.
The following are 10 of the most important recruiting metrics to keep track
Our list of 10 metrics is a terrific place to start whether you’re just beginning to monitor your recruiting efforts or want to concentrate on the most crucial metrics that will help you improve your hiring process.
1. Filling time
The time it takes to find and recruit a new employee is referred to as time to fill. Recruiters often calculate the time to load based on the number of days it takes to advertise an open position and hire the best applicant.
This measure is often influenced by supply and demand, and numerous variables may contribute to this, such as industry need or the speed with which a recruiting team performs.
Why is time to fill necessary? It allows recruiters and hiring managers to see how long it will take their organization to fill available positions or replace churning personnel.
2. Recruiting time
Time to hire, not to be confused with our first statistic (time to fill), measures how fast an applicant progresses through the recruiting process. Depending on the position and your company’s recruiting procedure, the time to hire might be rapid or take a long time!
Metrics such as are significantly influenced by your recruiting funnel. A simple recruiting strategy may speed up the hiring process, but jobs that need numerous rounds of interviews, panel discussions, test projects, and other stages can take much longer.
3. Hirer’s source
Knowing where your best prospects and applications come from is crucial, particularly regarding recruitment marketing. With this indicator, you can identify which sources and channels are bringing in the most candidates for your available positions.
To discover where applicants come from and which channels are most effective, look at your jobs page, the job boards or platforms where you post available positions, your social media profiles, and any paid advertising channels you employ.
4. A wide range of candidates
Diversity recruiting is becoming an increasingly important aspect of any hiring team’s process for finding top talent. Still, it’s not usually tracked in the same way that top-of-funnel metrics like time to hire are.
Examine the statistics around the diversity of your applicant pipeline to verify you’re driving diversity in recruiting. EEO dashboards, applicant questionnaires, hiring feedback, and other tools may help you collect data and monitor this statistic.
5. The rate of attrition
The attrition rate is the pace at which your company loses personnel over a particular period, and attrition in the first year is a related statistic.
While attrition isn’t merely a recruiting issue, it may be expensive to replace excellent personnel. There are expenses associated with recruiting and hiring and the resources required to onboard new staff, and this is particularly true for first-year attrition, another essential indicator to examine.
People quit companies for a variety of reasons. However, the attrition rate is essential from a recruiting standpoint. It lets you see whether job descriptions and ads effectively express expectations and if hiring teams are upfront about roles and responsibilities throughout the recruiting process.
6. Hiring quality
This measure relates to a new hire’s performance within their first year. It also considers the employee’s transition period, their integration into their teams and culture, and any performance evaluation results.
While assessing the quality of a recruit is subjective, it is undoubtedly one of the most critical metrics to monitor. Poor performance may suggest that you have the incorrect individual performing the wrong job, regardless of how fast you fill a post or how much you lower the cost of hiring.
Because improper recruiting may cost a company thousands of dollars, it’s vital to ensure you’re assessing the quality of hire.
7. Number of applicants for each position
Working to bring attention to available opportunities inside their business is essential for a recruiter’s job. However, how can you know whether job searchers are interested? You track metrics such as the number of candidates for each position.
Using this measure based on statistics such as the number of applications per job or hiring, you may evaluate the demand for and interest in an available post. On the other hand, you could look at how many job searchers quit application procedures or opt not to apply to a post after they reach a specific point in the process.
8. The cost of hiring
The entire amount you spent on recruiting in a given year divided by the number of recruits you made equals the cost per hire. All organization’s recruiting expenses are different, but it’s a good idea to assess your own company’s typical prices for various jobs.
Analyze how much it costs you to employ for each particular function, as well as the finances you spend both internally and outside, to make the most of this measure. Internal costs, for example, might include employee or recruiter recommendations, but external prices could include agency-related expenses, paid marketing, and more.
Many recruiting teams aim to lower their cost per hire, but you won’t know how much hiring costs your firm unless you look further into the data.
9. Acceptance rate of offers
This measure allows you to compare the number of applicants that accepted a job offer vs. those who were offered a job. And your recruiting staff can learn a lot from this information.
Salary and remuneration, benefits packages, flex work, and other considerations may all influence whether or not an applicant accepts a job offer. Low offer acceptance rates are sometimes symptomatic of unresolved difficulties throughout the employment process.
Try to include additional information about culture, remuneration, and working styles in job descriptions to avoid this.
10. The number of job openings
To measure the effectiveness of your recruiting strategy—and, more particularly, for specific departments or teams—compare the number of available jobs at your organization to the overall number of positions.
For example, if you have a large number of available jobs, this may suggest a lack of demand or interest; on the other hand, if you have a smaller number of open positions, this could indicate the significant need, particularly during times of fast development or expansion.
If high-volume recruiting is a recurrent worry for your team, or if you need to hire in bulk and want to measure how soon jobs are filled, this is a statistic to keep an eye on.