84% of recruiting professionals believe data-driven recruiting will become a necessity over the next five years. Hence, it is not surprising to see that an increasing number of recruiters are turning to recruitment analytics to put the right people in the right roles.
Traditional recruitment has been more human-centric and less integrated with technology; hence, there was no way to figure out if something was going wrong in the process. This has resulted in recruitment bias, wrong hire, higher attrition rates, and more of such recruitment bottlenecks.
However, since recruitment analytics entered the talent market, the changes noticed have been significant. Recruiters can now track their time-to-hire, develop better candidate experiences, and streamline the entire process using AI and ML as primary technologies in use.
Recruitment analytics is a part of talent management that involves tracking, measuring, and analyzing candidate and employee data to make better hiring decisions. Recruitment analytics depend on recruitment data, which is a combination of recruitment metrics and talent insights.
Let us look at ten recruitment metrics to keep in mind when getting started with recruitment analytics.
Time to fill
This refers to the time it takes to find and hire a new candidate. It is often measured by the number of days between publishing an opening and hiring a candidate. Time to fill is influenced by supply and demand ratios of specific jobs as well as the landscape of the talent market.
Time to fill offers a realistic view of how long it will take to replace a departed employee or hire a new one. It helps you plan your hiring efforts better and serve as a warning when your hiring process takes too long. In addition, it has a positive net effect on everyone’s time, as it means less overtime and greater stability in the hiring process.
Time to hire
Time to hire measures the time between the moment your prospective hire enters your pipeline through sourcing or application and when they accept your job offer. This metric indicates how fast you’ve spotted your best candidate and moved them across the job’s pipeline. This is a crucial metric to identify any problems in the hiring process that may be slowing down recruitment.
Most of the top talent are fast and accurate decision-makers; they will likely view slow hiring decisions as an indicator of lack of efficiency.
So it’s essential to track Time-to-hire as it helps track recruitment efficiency, improve candidate experience and offer greater stability in the process.
Source of hire
Every recruitment channel is different and delivers different candidates. To find out which sources are working best will help recruitment teams focus their attention on those particular sources, saving time and resources. This metric helps in keeping track of the effectiveness of different recruiting channels. Most enterprises today, are using AI-backed talent intelligence tools that find and list potential candidates and analyze their persona for better understanding.
The best recruiters know how to automate the tedious parts of sourcing while still using human intuition and manual efforts to find top talent. After all, sourcing is about making connections with candidates.
Quality of Hire
Quality of hire measures the value new hires bring to a company. In this context, ‘value’ means how much a new hire contributes to the company’s long-term success by completing tasks, improving their work, and helping others.
Quality of hire, often measured by a candidate’s performance rating, gives an indicator of the first-year performance of a candidate.
According to a talent trends report, Quality of Hire is a priority for 40% of large enterprises worldwide and 45% of small businesses.
Quality of hire is perhaps the most significant recruitment metric to consider. If the new hire doesn’t contribute to the company’s goals, it could be an operational and financial setback for the firm.
Candidate Job satisfaction
Candidate job satisfaction is a proven way to track whether the expectations set during the recruiting procedure match reality. A low candidate-job satisfaction highlights mismanagement of expectations or incomplete job descriptions. Better job satisfaction results in higher retention rates, saving cost-to-company and time spent in hiring.
Higher job satisfaction results in higher retention rates, improved productivity, focused work culture, and balanced teamwork.
Applicants per opening
Applicants per job opening measure the job’s popularity. A large number of applicants could indicate a high demand for jobs in that particular area. On average, each corporate job offer attracts 250 resumes. The employer will then interview 4–6 candidates, and only one will be successful. A low volume of applicants per job opening can indicate poor job description writing and marketing. Understanding the source of the deficiency will allow you to create a strategy to increase your volume of applicants.
The selection ratio refers to the number of hired candidates compared to the total number of candidates. This ratio is also called the Submittals to Hire Ratio. The selection ratio also helps identify how many suitable candidates are being received in applications and how many are being hired.
The selection ratio showcases how competitive your open jobs are. If you consistently have a higher volume of applicants to hires, you may want to experiment with automation such as talent acquisition tools to better manage the applicants.
Cost per hire
The cost per hire is the total cost invested in hiring a candidate divided by the total number of hires. Cost per hire consists of multiple cost structures, which can be divided by internal and external costs.
Cost-per-hire is important because it shows you how much you spend on single hires, multiple hires, and your total and average costs for all hires. Delineating efficient hiring patterns against the costly ones will help you realistically build future budgets and set cost-effective strategies.
Offer Acceptance Rate (OAR)
The offer acceptance rate compares the number of candidates who successfully accepted a job offer with the number of candidates who received an offer. A low rate is indicative of potential problems in the offer. When these problems occur often, the job offers can be customized and tested for results.
OAR is the final part of your recruiting process. A low acceptance rate can indicate poor compensation and benefits programs, among other things, including poor brand image, a lengthy recruiting process, and more. By analyzing OAR, enterprises can understand what is going wrong with their job offers.
Recruitment funnel effectiveness
Recruitment is a funnel that begins with sourcing and ends with a signed contract. By measuring the effectiveness of all the different steps in the funnel, you can specify a yield ratio per step. Recruiting funnel effectiveness is a great way to measure and present the performance of your entire recruiting process.
Talent intelligence platforms like Draup for Talent analyze recruitment funnels, workforce needs, and candidate information while delivering recruitment metrics in an easy-to-navigate dashboard.
Being leveraged by Fortune 500 companies, Draup successfully identifies, recruits, and helps to hire high-quality, relevant talent to reduce hiring costs and prevent costs incurred due to bad hires.