The talent acquisition (TA) teams in organizations have been struggling to showcase their contribution and gain more acceptance by the business side. This is mainly because they have not been able to quantify their contribution effectively and display how they add value to the business. A good mix of talent acquisition metrics can be used to help evaluate the effectiveness of the process and confirm its impact on business.
A talent acquisition teams’ recruiting process metrics dashboard can help them decide what is working and what is not and also where the time and budget must be allocated to achieve the best results. Some recruitment metrics that the TA teams must track to present their business case are as follows:
Time to hire
With talent acquisition metrics and analytics, recruiters can bring more efficiency to the process and cut down the time needed for talent acquisition. While ‘time to hire’ is a broader metric to assess the time and efficiency in recruiting costs, there are some other talent acquisition metrics they can use to evaluate the time taken.
With talent acquisition metrics and analytics, recruiters can bring more efficiency to the process and cut down the time needed for hiring. While ‘time to hire’ is a broader metric to assess the time and efficiency in hiring, there are some other talent acquisition metrics they can use to evaluate the time taken.
- Time to fill: It measures the time required to fill a position, from the date of requisition approval to the date of background check completion. Shorter fill times imply increased hiring manager productivity, decreased cost of vacancy and decreased cost per hire.
- Time to accept: It measures the time required to fill a position, from requisition approval date to the date when the job offer is accepted by the candidate.
- Time in process step: This describes the time taken by the candidate at each step including phone screening, submissions to the hiring manager and interviews. This talent acquisition metric is a strong indicator of the strength of the hiring process and can largely help in identifying the bottlenecks in the process. Once these bottlenecks are identified, it is easier to address them and improve the overall efficiency of the process.
- Time to start: It measures the time required to fill a position, starting from the date of requisition approval through the target or actual joining date of the candidate.
You might also be interested to read: How to Change Your Recruiting Strategy to Attract Talented Workforce?
Candidate drop rate
One of the most common challenges faced by recruiters is that candidates drop out at different stages of the process. By taking the number of candidates who start a job application minus the number who complete it, divided by the number who start, recruiters can track the candidate drop rate across different hiring stages. This can help the recruiters identify the bottlenecks in the hiring process and address it by improving on their strategies.
Candidate withdrawal reasons
This is a metric that helps TA professionals to delve deeper and identify specific reasons why candidates drop out of the process. It measures the total number of candidates who withdrew from the process in a fiscal year broken down by their reasons for leaving. This can help the talent acquisition teams to redesign their approach.
Revenue impact of recruitment
The talent acquisition teams can measure the direct financial value of their processes in two ways. One, they can compare their sourcing metric with that of the competitors in the same sector, and identify how they are doing better or can improve using their competitors’ practices as a benchmark. Two, they can assess the quality of hire and track how each new hire is contributing to the revenue of the organization.
Quality of hire
After talent attraction, retaining them is the next big challenge. Sometimes the new hires don’t fit into the organizational culture and sometimes they don’t fit into the role. This metric, also known as a first-year quality, is the percentage of candidates accepted for employment plus the percentage of those that stayed, divided by two. This talent acquisition metric matters most to the business stakeholders since ineffective hiring wastes a lot of time of the hiring manager, which can otherwise be used in value-ad business processes.
Offer acceptance rate
If the offer acceptance rate of an organization is lower than the industry standards, it implies that the offers are not lucrative enough. It could also mean that the candidates do not view the organization as an employee-friendly brand. The offer acceptance rate is an important talent acquisition metric that has to be improved to ensure that the organization can attract the best talent.
Hiring manager satisfaction
The human resource manager, for whose team the recruiters are hiring, must be satisfied with the new recruit’s performance and it is an important indicator of the success or failure of the recruitment efforts. It can be measured using net promoter score. This will help recruiters assess their efforts better and in case of poor scores, they can take feedback from the hiring manager and work on it.
Candidate satisfaction
With social media platforms like Glassdoor and LinkedIn at their disposal, an unsatisfied candidate can go a long way in tarnishing the image of the organization. With organizations competing for the same scarce skills, it becomes important for the companies to present themselves as a good employer brand. By measuring candidate satisfaction, TA professionals can assess whether they have been able to give a positive candidate experience or not.
Success ratio of sourcing platforms
With access to various sources for hiring, a recruiter can assess which platforms help them identify and get the most relevant candidates. Whether it is employee referrals, job boards, recruitment firms or social media platforms, TA professionals can track and compare the availability and quality of candidates from each source.
These are some of the talent acquisition metrics that need to be there on the recruiting team metrics dashboard to make sure that the business impact of talent acquisition is quantified and assessed. If they use it as actionable intelligence, it can really help the talent acquisition teams to build their business case. They can showcase how they have benefited from the new hiring strategies or new technologies and added value to organizational growth.
References:
- Using TA metrics to measure the business impact of hiring processes & strategies- Drishti Pant, 19 June 2019
- Seven Recruitment Metrics that Matter- Jon- Mark Sabel, 20 March 2019
- How to Improve Talent Acquisition- Saurabh Tyagi, 28 February 2018
