5 key KPIs to Measure Hiring Success

Measuring recruiting success is the best way to reduce costs and increase recruiting efficiency.

It is measured using various quantifiable metrics that compare one recruiting campaign and process to another and determine the optimal method for the company. Measuring recruitment success using KPIs can help you get answers to various questions such as: E.g :

• What worked better? Employee recommendations or an outsourced recruiting agency?
• When are we hiring? Only when we need workers, or before and with enough time for further training?
• Which background is better suited for a job profile? An engineer or an MBA?

Success in recruiting is every company’s dream. Too many options can be overwhelming. Here are the 5 most important hiring metrics to give you insight into your team's progress.

Source of recruitment

There may be multiple sources for your hiring, from on-campus recruiting, to internships, to referrals from co-workers and recruiting agencies.

If you're posting jobs across the network and trying to connect with future candidates, you'll want to know what the best strategy is.

Analyze the performance of different employees hired through different channels and determine which are your most important sources. Direct resources to the channels that deliver the best quality and close the networks that simply aren't working. The best way to monitor the hiring source is through a combination of surveys during the application process. The efficiency of a source can also be given using this formula:

Procurement channel efficiency = number of conversions via channel A

(-) Average number of conversions from all channels

Time to hire

The number of days between the time an applicant applies and the time the applicant accepts the offer reflects the time to hire. In other words, after applying, the time it takes someone to go through the hiring process is calculated.

Hiring time therefore gives a solid indication of how quickly the hiring team is working. You can also call this metric “Time to Confirmation.” A shorter hiring time often allows you to hire better candidates because it prevents another company from poaching the best candidate.

However, emphasizing a very short hiring time would mean rushing the process and compromising efficiency. If you notice that many applicants leave applications half-completed, you should review the details being asked and assess whether they demotivate the applicant not to apply.

Quality of applicants hired

Don’t we all want the best possible employees? The quality metric can be very comprehensive as it takes into account an employee's performance, their commitment to the company, and their adaptability to the team and company culture. Measuring this metric helps refine the characteristics sought, the sources used for hiring, and the training and outbound activities organized to groom employees.

Qualified applicants per position

Qualified applicants are those applicants who have gone through the screening of the application phase and are actually considered for a position.

A relatively large number of applicants may mean that demand for positions in the relevant field is high or that the job description is too small. A low number of applicants could mean the job isn't fun or the description is poorly written. So the number of qualified applicants can help you refine the job posting and make it more attractive to the type of talent you're looking for.

The number of applicants per position is not necessarily a measure of the number of suitable applicants. By narrowing the job description and adding a number of "strong" requirements, it is possible to reduce the number of applicants without reducing the number of suitable applicants.

Offer acceptance rate

The offer acceptance rate compares the number of applicants who accepted a job offer to the number of applicants who rejected the offer. A low ratio indicates possible problems with salary or benefits.

Since such issues also arise in other roles, compensation should be negotiated earlier in the recruitment process to reduce the number of rejected offers. This can also be achieved by mentioning salary, shift work and social benefits in the job description itself or by asking applicants about their salary expectations.

However, employers should also be open to negotiations with deserving applicants. These 5 key figures enable a precise examination of the detailed requirements in your recruitment process. They give you the data you need to adjust your processes and make the necessary improvements to increase the productivity and overall efficiency of your hiring team.

What other metrics do you use when evaluating your recruiting efforts? Let us know in the comments.

Revamp your recruitment strategy with IceHrm's insights on key hiring metrics. Optimize processes, reduce costs, and hire top talent effectively.