In today’s world, recruiting metrics matter.
Companies constantly need to cut costs and departments need to communicate the value they provide in quantifiable numbers that are easy for others to interpret. In Human Resources, there are numerous values that can be calculated — focus on the most important to your company and goals. Adopting these metrics can take some adjustment, but after time, they will not only help you do your job better, but they will also let others know the success of your department.
Deciding the recruiting metrics to measure can be difficult. Choose those that will provide impact for your organization, your department’s goals, and that will help save your organization money.
Here are 10 recruiting metrics you should be calculating and tracking for your company:
The measurement of a candidate’s perception of your company’s hiring process. By providing a survey or asking for feedback from candidates during and after the interview process, your company can measure how talent feels about your candidate experience.
How much money it takes an organization to hire a candidate. According to SHRM, the average cost-per-hire is around $4,129.
The amount of time it takes an organization to hire a candidate, from the start of the interview process all the way through to the offer letter. According to Glassdoor, the average time-to-hire rate is 23.8 days.
How To Calculate External Hire Rate
How many candidates a company hires that come from outside of the organization during a set period of time. To figure out your external hire rate, use this formula:
External hires / Average headcount x 100
How To Calculate Internal Hire Rate
The amount of internal hires a company has made during a set period of time. This metric covers all employees that have changed positions within the organization.
To figure out your internal hire rate, divide the number of internal hires by the average number of employees at your company.
Number of Internal Hires/ Average Headcount
How To Calculate Employee Turnover Rate
The percentage of employees that leave an organization during a set period of time. To figure out this number, divide the average number of employees at your organization by the number of employee turnovers during a designated period. Here's the appropriate employee turnover formula:
# of Turnovers/Total # of Employees x 100
How To Calculate Employee Turnover Costs
To figure out employee turnover costs, multiply the number of turnovers by the average cost-per-employee. When calculating cost-per-employee, be sure to include costs associated with hiring and onboarding the hire, costs associated with the absence of employees that have left, and costs associated with replacing the lost employee. Check out this handy guide from ERE for a more in-depth look.
How much money your company is spending to provide benefits for new and existing employees. This can include overall salary, health care, 401K and other expenditures, potential housing or relocation costs, and cost of equipment and training per employee.
How much an organization invests in training and development per employee. According to the 2016 Training Benchmarking Study, more than half of employers will invest $1,000 or more for training resources for employees in more senior roles.
Having a strong sense of this data will enable you to monitor candidate satisfaction and the effectiveness of the practices you have in place to set quantifiable goals to improve candidate experience.