You’ve probably heard the saying, “What gets measured, gets done.” This means that having a trusted system of regularly monitoring and measurement of key details about your efforts helps you stay focused on your goals.
That said, how do you measure the effectiveness of recruitment? Apart from identifying your desired results, having recruitment KPIs (key performance indicators) is a great way to help recruiters assess their processes.
What are KPIs in recruitment?
As these may vary depending on your organization and recruitment goals, these are some great ideas you can consider:
- Number of qualified candidates per job opening
- Job application completion rate
- Talent source quality
- Time to recruit and hire
- Hire quality
- Cost per hire
- Interviews to hire ratio
- Offer acceptance rate
- Candidate satisfaction
- First-year turnover rate
- Hiring manager satisfaction
Now that you’re familiar with some recruitment KPIs you can look into, let’s delve deeper into how and why the importance of KPIs is key to the success of an organization.
1. Company health is in check
KPIs serve as a scorecard for company health. Determining which areas of your business to grow will help you pinpoint the company’s vital signs. From there, you can then measure what you want to move so that you can allot resources, time, and energy where you want to effect change. In the case of recruitment, you can then check if your efforts are aligned with the overall business goals. Are you maintaining your ideal staff turnover rate? Is the company experiencing a good average number of quality candidates per job opening? If these are well-fit to what the organization aims to achieve, then you are hitting your KPIs.
2. Measure progress over time
As a recruiter, measuring progress and tracking key results in terms of your efforts to source and hire talents are highly crucial in measuring efficiency. Setting targets regularly by using relevant KPIs lets you log and monitor your progress and see how far you are from achieving them.
3. Recruitment KPIs are integral for making adjustments and staying on track
Aside from measuring your results, KPIs also help you spot indicators signaling when you’re in danger of not hitting those targets. These can then allow you to predict what will happen in the future through relevant data, patterns, and other vital signs. Further, these can inform you if your efforts are on track to reach the results you want.
4. Solve problems or tackle new opportunities
Using a combination of KPIs lets you see which of your recruitment strategies are working and need improvement. Likewise, such practice also enables you to spot recruitment challenges and modify your methods so you can implement a more feasible process and expect desirable outcomes.
5. Analyze patterns for the long run.
Once you get to measure the same KPIs regularly, you can now start detecting patterns in your data. While such information can get overwhelming as to how you can use it for your business, investing in ways how you can interpret and turn unorganized data into helpful business insights will lead you to countless growth strategies. Patterns are the main ingredient to predicting crucial business phases, too.
With all these considered, taking the first step in setting or improving your organization’s recruitment KPIs doesn’t just directly impact your recruitment efforts per se. At a larger scale, the favorable outcomes of this aspect contribute to the overall success a business can achieve.