What indicators are worth measuring in recruitment?
It is commonly believed that "people" issues in a company are not measurable. I.e., they are such soft areas that in HR we cannot rely on objective data. Of course, this is not true. Just like other departments in an organization, HR should base its actions on calculations and indicators. The ideal place to introduce them is in employee recruitment. What they can be, we would like to talk about today.
Time to Hire
The first indicator tells us how much time elapses between the time a candidate joins the recruitment process and his hiring. Nowadays, there are not many good specialists on the market, and companies competing for them are quite the opposite. Therefore, the speed of the decision can be crucial. In addition, candidates themselves also do not like to wait. The faster we act, the better it will translate into our Employer Branding.
Time to Fill
Time is extremely important. Also in the process of recruiting employees. This is because another indicator tells us how long it takes to fill a vacancy (from the time it occurs, until the person is hired or joins the company). Each day without closing a position generates losses for the company. Having to replace a missing person puts additional strain on other employees who cannot fully focus on their duties. For this reason, it is critical that this rate be as low as possible.
This indicator in recruitment tells us how many candidates have rejected our offer. We strive, of course, to minimize this phenomenon. If it is rampant, we should think about why candidates resign (maybe they don't like the final duties, salary? Or maybe they joined the process to prove themselves and never wanted to change jobs?) and draw appropriate conclusions and actions. The high level makes us significantly increase our recruitment costs resulting from reprocessing the candidate in question and reopening the process.
Cost per hire
We talk a lot about the impact of indicators on the organization's finances. This time we can directly focus on money. Cost per hire tells us how much it cost to fill a position. Here we take into account, for example, the price of publishing an ad, advertising, the time of the recruiter and other people involved in the process. The higher the score we have - the worse for us.
As we mentioned earlier - it is very important to take care of good Employer Branding of the organization. We must also adhere to it in the case of recruitment and make sure that candidates are satisfied with their participation in the process - even more so when they do not get a job offer. A dissatisfied person will not only not apply to us again, but will also discourage his friends from doing so.
Nothing at any cost
Measuring indicators in recruitment can give us a lot of valuable data and help us improve this area of the company. However, we must remember to approach our measure thoughtfully. Let's not aim at all costs, such as responding to a candidate on the second day, so that Time to Hire is as low as possible. This may end up in a situation where we hire people we are not sure about. It is better to give ourselves time. Another translation can be to minimize Cost per Hire. If we need to release expensive advertising to fill a vacancy - let's do it. Let's not close that door just to make the rate theoretically as low as possible. Data analysis is supposed to help us act and make us think about improvements. They should not block us.