Rolebot’s Top 3 & 3: Recruitment Metrics that Matter
April 21, 2021
Teams spend a lot of time trying to optimize their recruitment strategies. Diagnosing what works and what doesn’t isn’t an exact science, but leveraging data around our internal hiring efforts will help us sift through the muck.
There are three primary recruitment metrics every team should be keenly aware of and continuously measuring to optimize performance.
1.Time to Hire (TTH) is often known as how quickly you are able to identify the best candidate. The avg. TTH across the US today is 10–12 weeks, from starting the recruitment process to the start date. That’s a long time to spend hiring 1 person. Ideally, you cut that process in half, or by a ⅓.
Suggest looking at your current hiring process and figuring out what your company’s median TTH is, then assess each aspect of the process and come up with realistic ways to do it faster and easier.
Avoid having a process just to have a process; If it no longer makes sense, or doesn’t align with how the recruitment team or stakeholders’ workflow has evolved, then come up with an alternative approach to simplify or remove it. Having a recruitment process is critical, but continuously refining your processes to increase efficiencies, lower costs and provide a positive candidate experience should be the team’s highest priority.
2. Cost per Hire (CPH) measures how much money is spent hiring a single employee to a company. Many of us don’t have any idea on what this cost equates to, but knowing your avg cost per hire, and cost per hire across your most frequent roles will significantly impact your recruitment team’s efforts and enhance deliverables. To share perspective, the avg. cost-to-hire 1 person in the US at the receptionist level is $5200, and to hire a software engineer is closer to $20K. These costs are independent of an agency fee if you go in that direction. That’s internal cost only.
Suggest honing in on the CPH per skill/role and figuring out where technology can bring value to the team’s internal recruitment efforts increasing bandwidth, lowering cost, while still being able to meet the company’s deliverables.
Avoid increasing headcount to increase efficiencies. In some cases, that may be the right solution, but in most, you’re able to do a lot with a little if you refine your internal workflow and bring in the right technology to automate tasks that take the most time, with the least ROI.
3. Applicant-to-Interview shows how many applicant submissions are being considered for interviews. If the ratio is lopsided, it adds a lot of unnecessary time and effort better spent elsewhere.
Suggest locking in a recruitment strategy based on a role or skillset. Some roles receive a healthy stream of talent leveraging inbound channels, while others such as engineering and sales roles require an outbound approach.
Avoid lackluster screening questions or filters that may yield false positives and/or false negatives; the better your data is around an approach, the faster, easier, and less costly your hiring efforts will be.
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