There is a saying, “What gets measured, gets done’. I’m pretty sure all organizations follow that ‘path to enlightenment’ to figure out where they are, where they need to be and how to get there. Each department within an enterprise has its own distinct parameters of measuring performance, so does the Recruitment department. With the right set of recruitment metrics you can understand the health and effectiveness of your function, know where and how to allocate your time and budget effectively, shun the processes which are obsolete and optimize the ones which are performing. But the million-dollar question then becomes- how do you know which ones will apply to your firm and which ones aren’t relevant?
Having worked in the talent industry for more than a decade, we’ve developed almost a sixth sense about the most critical recruitment metrics that apply to every single client that we have worked with. Within the larger purpose of elevating hiring to a precise science, we want to educate the recruiters on the most important recruitment stats that every Talent Acquisition team should know, be it a large enterprise or an early startup. In our opinion, these are the top 7 recruitment metrics that cover the entire hiring cycle right from sourcing to candidate onboarding:
- Time to Hire
Simply put, Time to Hire is the total time taken by the recruiter to actually fill the position right from opening the job to offer being accepted. Also called candidate processing time, it is a critical metric that can help your hiring managers deduce if some roles are taking longer to hire. To stay on top of this statistic, most organizations currently use some form of automated assessment and online interview solutions that significantly reduce candidate-processing time while also sifting out the best candidates simultaneously for a much shorter Time to hire.
Here’s a great example of how an intelligent candidate assessment solution did more than just ‘assess’, it actually created a massive chain reaction of efficiencies that boosted up the entire hiring cycle. A global software giant wanted to identify highly proficient English speaking candidates in China. Their assessment process used to take over two weeks because each applicant was evaluated manually, and as a result, quite a few applicants lost patience and accepted other job offers, putting the entire hiring process into a tailspin. The firm enlisted Aspiring Minds’ SVAR assessment tool to automate and standardize the English-language evaluation test of their recruitment process. Its AI-powered spoken English evaluation with instant reports helped to expedite the hiring process while standardization maintained transparency and objectivity, and improved the quality of new hires. The company reduced evaluation and feedback time from 2 weeks to 1 day and reduced hiring cycle dropouts by 40%, as candidates were no longer forced to wait for results. A modest investment in technology remarkably collapsed Time to Fill.
- Cost per Hire:
Also called Cost to fill, it is the average cost incurred by any organization for every candidate hired. The equation takes into account all internal costs (manpower, infrastructure, technology etc.) and external costs (job postings, candidate expenses, marketing campaign, etc.) and divides this total cost by the number of hires.
If your recruitment function is disorganized, your team follows inefficient hiring practices naturally you will incur higher cost per hire. An automated, online assessment and interview solution can bring about a very tangible difference in your average cost to hire, because the system takes over most of the repetitive tasks for you and completes them in a fraction of the time. You’ve met everyone on today’s interview list? The platform automatically sends out emails to the selected candidates asking them for their availability for the next interaction. No more chasing the candidates on the phone or leaving voice messages. Candidate in another country? No problem. Schedule an online interview assessment and forget about making travel arrangements. The number of man-hours saved by not having to do monotonous tasks related to infrastructure, logistics and people etc. immediately translates into significant savings. You can dramatically improve this metric by deploying a machine learning-backed automated assessment solution like Aspiring Minds CodeMeet or Autoview, because the platform reliably and accurately processes hundreds of applicants concurrently on their business skills as well as soft skills, thus shrinking the cost per hire by almost 40-70%.
- Quality of Hire:
According to LinkedIn, 40% companies in the world rank Quality of Hire as their top priority. In essence, it measures the value that new employees bring to the table for the amount of time they have spent in the company. One of the most popular ways to measure quality of hire is to calculate how the new employee is performing against pre-defined productivity goals. Is he on track to reach his sales target? Are his team-objectives being met? Is he demonstrating leadership skills? Ideally, the employee should have spent at least 6 months in the firm before his data is considered for analysis. Another statistic that can help is the Retention percentage amongst all new employees (the % of new employees hired who completed one full year of employment) Using these 2 data points, the following equation can be arrived at:
- Offer Acceptance Rate:
This one is a fairly straightforward measure that quantifies the success rate of offers getting accepted by candidates.
For. e.g. if 8 candidates were made offers and 3 accepted, the offer acceptance rate is (3/8)*100= 37.5%.
From a business context, this is a fairly worrisome result, and the hiring managers should attempt to understand if they need to make the compensation offered more attractive or the roles meatier or find other reasons for offer rejections. Apart from understanding if the disconnect is for specific departments/hiring teams or for specific roles, this metric can also help companies realize that a stronger employer brand can positively impact the acceptance rate, because- like it or not- the impression that candidates carry of your firm at the end of the hiring process will hugely influence whether they accept your offer or not.
- Hiring Manager Experience:
This is the rare qualitative measure that requires a little more effort to arrive to, but it is well worth the time. Consider this as a ‘hygiene’ parameter, where Hiring Manager Experience strives to put a score to how satisfied or happy a hiring manager is with the quality of candidates s/he meets and the overall hiring process.
One way to do it is to conduct a survey amongst all hiring managers and table the pain points, as well as success areas. Include specific questions in your survey like “Are you happy with the technology you are using for interviewing and assessment?”, “Did the recruiter understand the job requirements and your specific needs?” or “ How satisfied were you with the quality of candidates interviewed?”, “ Assign all questions weight values according to how important each point is to the hiring process for every role and arrive at a score. A low satisfaction rate tells you that your hiring system needs a do-over because the current hiring approach is not attracting the right kind of candidates. The internal survey you conduct should indicate which parts of the process raised red flags and what elements to change.
- Candidate Experience:
This is a one of the most undermined metrics for recruitment because at the end of the day, your hiring efficiency should reflect not only your team’s happiness with the overall quality of applicants met but also candidate delight: “How was their first exposure to your company? “Did the recruiters take proactive measures to keep the candidate in the loop?”, “Were the candidates happy with the overall hiring experience at your firm?” When you ask applicants such questions, you might get some real honest answers regarding the quality of interaction e.g. the amount of time they had to wait to get feedback after their meeting. A new age, AI-backed workflow offers many advantages over a traditional process e.g. with an automated interview platform, the candidate gets real time feedback on his interview, instead of having to wait for days. Rather than coming over to the employer’s office, s/he can attend the interview from the comfort of his/her own house. An online automated interview and assessment solution like ours can evaluate hundreds of candidates at the same time with precision and accuracy.
Here’s a wonderful example of how one of our clients achieved their hiring goals while also notching up very favourable candidate experience stats. When India’s third largest private bank, Axis Bank decided to take an AI-led approach to identify the best candidates for its one-year Young Bankers residential program, the idea was to adopt an easy to use assessment solution that spins faster, engages a vast number of candidates simultaneously across multiple cities and provides a seamless brand experience. Using Autoview, Axis Bank conducted more than 20,000 candidate evaluations in 10 days to produce an assessment every 7 seconds. Even applicants who did not make the cut had a positive, engaging candidate interview experience, creating the possibility of future interaction with these young, talented candidates. Candidate experience is the surefire barometer to know how well you are perceived in the talent market.
- Candidate Dropout
A very important recruitment statistic to consider is the number of applicants who pulled out of the recruitment process before the role was closed. The candidate dropout ratio indicates a lot of things; the extent (or lack) of candidate engagement, level of mismatch between the job description and what is eventually laid out to the candidate, or even salary expectations. Many analysts consider the Candidate Experience score as a good yardstick for predicting the Candidate dropout rate. To ensure your candidates stay ‘sticky’ throughout the hiring cycle, talent partners like us can help create an attractive digital environment for them to stay connected with the company. Organisation’s should adopt onboarding portals which encourage candidates to vicariously experience the office culture, interact with their onboarding buddies, watch 360o videos of the office working space, know about their teams, interact with live onboarding chatbots etc. Despite these proactive measures, it is still possible for candidates to still opt out of the process. Whatever the case may be, candidate dropout ratios need to be referred to for each role so talent acquisition managers can find the reasons and plug the gaps before all the good candidates slip away.
Hiring good talent shouldn’t seem like crossing a maze of landmines; it should also not be about trawling endless reams of data and culling out innumerable metrics to measure your hiring performance. We’ve whittled them down to these 7 indices so you don’t have to. Take this time to choose the perfect assessment and interview solution to help you win big in the battle for hiring the best talent.