FREMONT, CA: In a data-driven hiring process, recruitment metrics are crucial. With the wide variety of metrics available, it can be challenging to identify the most effective ones. These metrics are used to assess hiring success and improve the recruitment process, enabling more informed decision-making.
Time to Fill
It is the total number of days in the calendar taken to recruit and hire a new employee. Time to Fill is frequently determined by counting the days between the approval of a job request and the applicant accepting an offer. The metric can be affected by several factors, including supply and demand ratios for certain positions and the efficiency of the hiring team. This metric helps in business planning by rendering information on the time required for the replacement of a departing employee.
Time to Hire
The period between a candidate’s application and acceptance of a job offer is referred to as the time to hire. It represents the time taken for a candidate to get from the application stage to the hiring stage.
Thus, it provides insight into the performance of the recruitment team. This metric is also known as the time to accept. It always accelerates the recruitment procedures to prevent the loss of suitable candidates. Moreover, applicants do not prefer lengthy hiring processes, which will affect their experiences as well. Time to hire will be quicker if hiring for positions just requires a single interview rather than telephonic conversation, assessment, and multiple rounds of discussion. Therefore, it is essential to calculate the time to hire a new applicant.
Source of Hire
One of the most common recruitment metrics is tracking the sources that attract recruits to a company. This measurement helps in monitoring the efficiency of various recruitment channels. Job boards, a company's career page, social media accounts, and sourcing agencies are a few examples of recruitment sources. Therefore, it is better to have an understanding of the channel that most of the successful candidates come from.
First-year Attrition
First-year Attrition, or new hire turnover, is another crucial recruiting metric essential for successful hiring. Candidates who leave in the first year on the job fail to become completely productive and usually cost a lot of money to the company. First-year attrition can be managed and unmanaged. Managed attrition occurs when the employer terminates the contract, whereas unmanaged attrition occurs when the candidate departs on their own. Managed attrition indicates a bad first-year performance or a bad fit with the team. Unmanaged attrition is a result of unrealistic expectations, which compel a candidate to quit.
Quality of Hire
It is a measure of a candidate’s performance, which indicates their first-year performance. High-performance ratings are an indication of successful hiring, whereas low first-year performance signifies bad hires. Quality of hire is required to calculate Success Ratio which is important to understand recruitment utility analysis. This analysis helps the company calculate the return on investment for different selection instruments.
