Top 5 Recruitment KPIs
By Trevor Sheffield
February 21, 2023
Does your business have Recruitment KPIs? Have you ever found yourself wondering whether your recruitment strategy is actually working? Measuring your efforts is crucial when it comes to refining your ideas and changing course when needed. That’s why we’ve put together a list of the top five key performance indicators (KPIs) that can let you know how your recruitment efforts are doing. Take note of these and see how your strategies are working for or against you. It will help you pinpoint opportunities to change for the better.
Hiring Process Time
The first thing you should consider is how long your entire hiring process takes. On average, how much time passes between your first recruiting efforts and the moment the hire is officially processed and cleared for work? Tracking these numbers helps you know if there are patterns that show some recruiting strategies are better than others. Consider replacing efforts that take weeks or even months with efforts that take days. This will increase your company productivity overall.
Cost Per New Hire
Recruiting efforts often cost money. Whether you’re placing digital ads to let people know about the job or attending career fairs, you’re invested in your tactics. Calculate how much total money each new hire costs you. There are a variety of ways to track numbers like this: you can track total recruiting costs and divide by number of new hires or even track individual costs that go directly towards each position and calculate an average. Regardless of your chosen method, tracking this cost will help you decide how much money is worth spending on which recruitment strategies. You’ll easily be able to determine the cost of an effective new hire and base your decisions on that.
Are the employees you’re hiring actually succeeding at their jobs? When each candidate comes in for an interview, consider asking them how they measure their success. Talk as a company about success measurements as well. When everyone is on the same page, it becomes easy to determine whether employees are effective or if they’re just there to clock in and clock out. Effective employees are worth far more than ineffective ones. They require little to no discipline and run a much lower risk of being fired for unprofessionalism. Plus, good quality employees attract other good quality employees.
First-year Turnover Rate
Ask yourself how often you find yourself hiring for the same position. If the positions you’re looking to fill are intended to be long-term, are the hires staying for long periods of time? If not, ask yourself how you can make the position better and what would make employees want to stay. If you keep your people satisfied, then you spend less money on recruiting for the same position over and over again. Additionally, satisfied employees are often more likely to recommend their workplace to friends and family who are qualified for your job postings.
Consider whether the candidates you interview and screen for each job are satisfied with the process. If you’re simply hiring the first people that send in their resumes (which we don’t recommend), it’s likely your candidates are less than happy with how you’ve handled the recruitment process. Asking for honest feedback from your candidates can help you know where the hiring process should be changed in some way to help you choose the best person for the job.
Are you tracking any of these Recruitment KPIs? How are they affecting your business model? As you measure each of them and learn how to adjust your recruitment strategy, you’ll not only find success—you’ll feel the success, too.
Timerack offers time tracking software that can help with your staffing and recruiting needs.