Metrics can be key to the success of any recruiting plan you execute, so it's important to take a data brave approach to hiring where you collect and analyze information on a regular basis in order to gauge your progress and make sound decisions. However, to get the most out of metrics, you need to track data that make the most sense for your organization. Although having information is a great way to make decisions, tracking every metric just because you can will be counterproductive. To help you get an idea of which recruiting metrics matter most in 2022, the following is a look at different data you can track and why they're significant.
Recruiting Metrics Your Team Should Be Measuring
1. Hires Per Month
If your organization plans to grow in 2022, the hires per month metric is necessary to track so you’ll know if you're reaching your goals. It will also allow you to understand which positions are being filled, and help you make plans for future vacancies based on what's going on in your organization and trends in your industry.
2. Cost Per Hire
The cost per hire metric lets you know if you're getting enough bang for your recruitment bucks because it reveals the average cost to hire workers from sourcing to onboarding. This information tells you if specific expenses are cost effective, such as belonging to professional networks, posting on recruiting boards, and using the services of agencies. In some cases, this metric may also include relocation expenses or visa fees for new hires. Knowing how much you spend for each hire and where the money is going will allow you to eliminate strategies that aren't worth it.
3. Offer Acceptance Rate
The offer acceptance rate metric will let you know if your hiring process is effective, or if there are problems along the way that need to be corrected. In addition, if you have a low offer acceptance rate, it can be an indication that your compensation packages are too low for the type of talent you want to hire. Be sure to examine what you're offering and make adjustments if you're missing the mark of what quality candidates expect and deserve.
4. Time to Fill
Time to fill refers to the number of days it takes from the time you post a job to the time an offer is accepted. Although supply and demand may heavily influence this metric, it can also be an indicator of a problem in the hiring process that needs to be fixed. From resume screening to the way interviews are conducted, certain issues may increase the time it takes to fill each position, so it's important to be mindful of the factors that may clog up your hiring pipeline.
5. Source of Hire
Whether candidates are coming in through your website, professional networks, or advertisements on job boards, knowing the sources of your hires will help you understand which outlets are the most effective for attracting top talent. Tracking this metric will help you decide which sources you should keep in your recruitment toolbox and which ones need to be replaced.
6. Diversity of Hires
If you’re focusing on implementing a diversity recruitment plan this year, the diversity of hires metric should be tracked to ensure you're meeting your goals. This data can be measured across demographics, so you can determine which communities are represented in your hiring, and which ones you need to focus on more. Once you know who is being hired and who isn’t, you can adjust your strategies to get more talent from underserved backgrounds into your hiring funnel.
7. Retention Rate
Your recruiting metrics shouldn’t end when you hire new employees. You should also pay attention to your retention rates, and track how long it takes for people to generally leave your organization. Dealing with constant turnover is not only costly, but can be indicative of a crack in your hiring system. Perhaps your job descriptions aren’t an accurate reflection of the positions you’re filling or hiring managers aren't evaluating candidates in a way that leads to the right employees. Low retention rates can also be caused by problems with your company's culture or compensation. If your retention rate is lower than what you think it should be, it’s time to investigate possible causes and act on that information.
Knowledge is power, so the more data you have about your hiring process, the more efficient you can make it so you meet your goals. However, you don't want to collect data for its own sake, so be sure to choose the recruiting metrics that make the most sense for your organization. These metrics suggestions can help you get the most relevant information for your company and tailor your plans based on the data you decide to track.
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