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What are the most important recruiting KPIs to measure as you build your talent acquisition strategy?
The first and most important KPIs to measure make up your candidate funnel.
Measuring your sourcing efforts from "profile" to "offer" will give you an indication of how many candidates you are attracting, how many move through each stage of your recruiting process, and how many are ultimately hired.
Vital talent acquisition metrics to track within the candidate funnel include:
The number of applications received per job posting
The number of candidates contacted
The response rate
The number of phone screens
The number of first interviews
The number of second interviews
The number of panel interviews
Each step will give you insight into where you might need to make changes in your recruiting process. For example, if you have a high drop-off rate after the first interview, you might want to review your screening questions or the way candidates are being introduced to your company.
In addition to the candidate funnel, other key talent acquisition KPI examples include:
1. Candidate Source
4. Offer acceptance rate
6. Retention rate
7. Employee referral rate
8. Diversity hiring goals
9. New Employee ramp times and performance
10. New hire turnover
11. Annual attrition
These 11 metrics will give you a holistic view of your talent acquisition efforts and help you identify areas for improvement.
To learn more about the most important KPIs in recruiting, check out, "The ABCs of Recruiting Metrics."
Each of these measures will give you a different perspective on the effectiveness of your recruiting process. Time-to-hire, for example, will tell you how long it is taking to fill open positions. This metric is important because the longer it takes to fill a role, the more it will cost your company in lost productivity.
The cost-per-hire metric will give you an idea of how much it costs to bring a new employee on board. This is important to track because it can help you identify ways to cut costs in your recruiting process.
The quality-of-hire metric will tell you how well new employees are performing once they start work. This metric is important because it can help you identify whether or not your recruiting process is attracting and hiring the best candidates for your open positions.
The offer acceptance rate metric will tell you what percentage of job offers are accepted by candidates. This metric is important because it can help you identify whether or not your offers are competitive.
The new hire turnover metric will tell you how long new employees stay with your company. This metric is important because it can help you identify whether or not your recruiting process is attracting and hiring the best candidates for your open positions.
Plotting these metrics over time will give you a clear picture of the effectiveness of your talent acquisition strategy. Comparing these metrics across different departments or locations will help you identify areas where your recruiting process might need improvement.
One of the easiest ways to track these is by integrating your ATS (applicant tracking system) with interview intelligence software.
Interview intelligence software will give you detailed insights into each stage of the interview process. This data can be used to improve your sourcing, screening, and interviewing techniques.
Applicant tracking systems will help you track and manage your candidates throughout the recruiting process.
The two platforms together will provide you with a complete picture of your recruiting process from start to finish.
Recruitment metrics will vary year to year and change slightly depending on economic conditions and other factors.
Keep in mind that talent acquisition statistics change every year as the workforce evolves.
But, here are the primary talent acquisition metrics to keep an eye on in 2022:
1. The number of job postings: This metric will give you an idea of the demand for talent in the marketplace.
2. The response rate: This metric will tell you how many candidates are responding to your job postings.
3. The conversion rate: This metric will tell you how many candidates are accepting your job offers.
4. The time-to-hire: This metric will tell you how long it is taking to fill open positions.
5. The cost-per-hire: This metric will give you an idea of how much it costs to bring a new employee on board.
6. The quality-of-hire: This metric will tell you how well new employees are performing once they start work.
7. The offer acceptance rate: This metric will tell you what percentage of job offers are accepted by candidates.
8. The new hire turnover: This metric will tell you how long new employees stay with your company.
Tracking these metrics will give you a clear picture of the effectiveness of your talent acquisition strategy. Comparing these metrics across different departments or locations will help you identify areas where your recruiting process might need improvement.
If you assemble an EOY recruiting benchmark report for 2022 and include all of the data points listed above, you'll have a valuable tool to help you fine-tune your recruiting process and improve your hiring results in 2023.
The talent acquisition landscape is constantly evolving. New technologies are being developed all the time to make the recruiting process more efficient and effective.
As we move into 2023, here are some of the latest trends in talent acquisition that you should be aware of:
Recruiting automation is one of the most talked-about trends in talent acquisition. Automation can help you speed up your recruiting process, improve your candidate experience, and reduce your costs.There are a number of different types of automation tools available, from applicant tracking systems to candidate relationship management platforms.
2. Artificial intelligence
Artificial intelligence is another hot topic in talent acquisition. AI can be used for a number of different tasks, from sourcing candidates to conducting job interviews.
Blockchain is a new technology that is starting to be used in recruiting. Soon, blockchain will be used to verify a candidate's identity and qualifications.
4. Virtual reality
Virtual reality is being used in a number of different industries, and talent acquisition is no exception. VR can be used for training, interviewing, and even onboarding new employees.
Gamification is a trend that is being used in a number of different industries, including recruiting. Gamification can be used to engage and motivate candidates throughout the recruiting process.
These are just a few of the latest trends in talent acquisition. As we move into 2023, we are sure to see even more new technologies and ideas emerge.
How to evaluate recruiter performance.
What were your talent acquisition KPIs in 2021 and the first 3 quarters of 2022?
Do you have measurable KPIs and talent acquisition metrics to hit for your recruiting team and hiring managers?
KPIs for recruitment managers will vary drastically by industry, company size, and other factors.
That being said, it's still vital to measure and track KPIs in your recruitment process to benchmark progress and identify any potential areas of improvement.
Recruiters and hiring managers are often the first impression a candidate has of the company. As such, it's important to make sure that they're representing the company in the best possible light and providing a positive candidate experience.
The interview process is never fun. Emotions are high, and there's a lot riding on the outcome.
As a result, it's important to make sure that your interviewers are well-trained and prepared. This includes knowing how to ask tough questions without putting candidates on the defensive.
It's also important to make sure that your interviewers are taking the time to get to know candidates on a personal level. This helps ensure that you're making the best possible hiring decisions.
Your recruitment metrics template should include all of the essential data points listed above and serve as a hiring overview at a glance.
Assembling a comprehensive recruiting benchmark report will help you fine-tune your recruiting process and improve your hiring results in 2023.This recruitment metrics formula will help you collect and track all of the essential data points listed above. Simply copy and paste it into your own document, and fill in the blanks with your own data.
Recruitment Metrics Template:
*Data collected from ______________ (date) to _____________ (date).
1. Number of applicants: ___________
2. Number of interviews conducted: ___________
3. Number of offers extended: ___________
4. Offer acceptance rate: ___________
5. Time-to-hire: ___________
6. Cost-per-hire: ___________
7. Quality of hire: ___________
8. Employee retention rate: ___________
9. Manager satisfaction score: ___________
10. Candidate satisfaction score: ___________
*Note: The above metrics are just a starting point. You may want to add or remove metrics based on your own needs and preferences.
Primary data sources for the recruitment metrics
1. Applicant Tracking System (ATS)
2. Interview Intelligence Software.
These data points will show you where your recruiting strategy can improve to attract top talent, improve your candidate experience, and close more offers.
Using Pillar's interview intelligence software, you can measure and track all of the essential data points listed in the recruitment metrics template above.
Pillar is designed to help companies improve their recruiting process and hire the best candidates.
If you're looking for a way to improve your recruiting process, schedule a demo, today. We'll be happy to show you how our software can save you time, and money, and make better hires.