5 Crucial Talent Acquisition Metrics You Should be Tracking
Ever wondered what talent acquisition metrics you should track to hire faster, better, and more effectively? How about helping your recruiting team meet their targets?
If that’s a yes, we’ve outlined below some of the most important metrics you can use to improve your recruiting strategy.
What are Talent Acquisition Metrics?
Talent acquisition metrics are the standard measurements of success that enable your team to continuously meet your organization’s recruitment goals. These metrics can be combined to find the best candidate for the job while speeding up the recruitment process and reducing recruitment costs. Consequently, these metrics are a tool to leverage when evaluating how efficiently your company is attracting the right talent –while also retaining it.
As a results-driven talent acquisition leader, here are some of the metrics you should be tracking in 2020;
1. Time to fill:
Time to fill is the length of time it takes to fill vacant positions in your company. The term covers the time a candidate is identified, interviewed, and finally hired. Time to fill does not have a fixed duration since it varies per industry. However, a survey from 2016 revealed that a general average for time to fill is around 36 days.
Improving time to fill has several benefits. It results in enhanced productivity of hiring managers since they spend less time interviewing potential candidates. Reducing time to fill also benefits your organization by enabling it to operate at its best, on time. On the other hand, it is important to keep in mind that only focusing on the speed of the process isn’t enough — you don’t want to sacrifice quality for speed.
2. Time in Process Step:
The Time in Process Step refers to the amount of time a candidate spends in each hiring process step. These process steps can include interviews, phone screenings, submitting the required information to the hiring manager, completing assessments, etc. It is, therefore, important to give Time in Process Step enough diligence.
When tracking Time in Process Step you can identify bottlenecks in the recruitment process. Ultimately understanding if certain steps in your hiring cycle delay your organization’s staffing needs.
3. Quality of Hire:
Quality of Hire refers to the contribution new talent has on your organization’s long term success. It can be measured by considering an employee’s performance, manager satisfaction, internal career progression, and company tenure.
Quality of Hire comes with several benefits. It helps your organization achieve its business goals, it can also help you understand the effectiveness of your recruiting methods, and ultimately it can save a lot of time and resources –from sourcing to onboarding. These benefits have led to a surge in the number of companies measuring the Quality of Hire.
4. Cost Per Hire:
Cost Per Hire takes into consideration different expenses that are involved in talent acquisition –including travel costs, sourcing costs, relocation costs, agency fees, to name but a few. A company’s Cost Per Hire can be determined by adding each of these costs and dividing by the total new hires for the year.
As you may have guessed, the longer it takes to find the right talent, the more resources and money you spend — reason why Cost Per Hire and Time to Fill are closely correlated.
Another closely related metric is Cost Per Vacancy, which is determined by dividing your company’s revenue per employee by the total working days in the year.
5. Offer Acceptance Rate
Offer Acceptance Rate compares the number of candidates who were offered the job and those that have accepted the job.
When a company’s Offer Acceptance Rate lowers, deeper analysis can be conducted to spot demographic trends, if any. This metric can oftentimes be improved by assessing job descriptions, salaries, corporate culture, job flexibility, competition, etc.
These 5 metrics are essential when understanding the performance of your talent acquisition efforts, we have written a more comprehensive summary here. Each of these metrics will help you to save time, lower costs, and find the right candidates for the job. Do you track other metrics not mentioned here Leave your comments below!