What is Recruitment Marketing? - Complete Guide
Recruitment marketing refers to all of those techniques hiring professionals implement to source, attract, engage, and nurture can...
Nowadays, the recruitment industry is evolving rapidly. Gone are the days when recruiters and HR used to hire candidates manually. Recruiting automation software becomes a lifesaver for hiring teams. It transformed the recruitment workflow like never before. The fruitful features of the recruitment software ease the hiring process and enhance the positive candidate experience.
With this enormous change, the assessment and improvement of digital recruitment increased as it provides the solution to make the recruiting process more efficient and effective for both - the recruiters and the applicants. The analytics features help recruiters to make data-driven and accurate decisions.
Hence, Recruiting KPIs metrics become an essential aspect of the hiring process as it provides deeper insights and point out the room for improvement. The features of reports and analytics in Recruiting CRM System and Talent Acquisition System become vital for hiring managers and corporate HRs to understand the issues in their recruitment cycle.
Let’s first understand what recruiting KPIs are and which are the most vital recruiting KPIs metrics recruiter should consider enhancing the recruiting process.
KPI is a Key Performance Indicator. Hiring managers can utilise Recruiting KPIs metrics to measure and calculate the performance of the hiring process. They use recruiting KPIs metrics to know how efficient their hiring is. It Provides data to recruiters and corporate HRs on the areas of improvement and shows the value and ROI for specific recruitment actions.
Recruitment KPIs are also known as Talent Acquisition KPIs or Hiring KPIs. Let’s see the top 15 recruiting KPIs for 2023 that corporate HRs, recruiters, staffing and recruitment agencies can use to leverage maximum benefits.
The hiring time is a vital and frequently used recruiting metric by hiring managers to check the time it takes to hire suitable talent in the recruitment workflow.
Suppose the day recruiter opened a particular position on day 1, and they reached the candidate on day 11. Afterwards, if the most suitable candidate accepted a job offer on day 28, then the hiring time would be 28-11= 17 days. Hence, the time-to-hire would be 17 days.
Time-to-hire ratio = 11/28 x 100 = 39.28% (on the 11th-day candidate contacted divided by the day (28th) the talent accepted the offer multiplied by 100)
It is a determining factor which measures the hiring time of the recruitment process. According to the SHRM report, it takes 36 working days for a company to hire talent.
The ultimate goal of this recruiting KPIs is to reduce the time to hire and improve the process by finding which hiring tasks take a lot of time, how recruiters can eliminate that particular task with automation, and which could be the possible solution to lessen it.
The company must recognise the most effective sourcing channel to hire the most talented people. The sourcing channel metric gives an insight into the effectiveness of every sourcing channel, gives the best sourcing channel in the recruitment process, and invests more time and money in their recruitment marketing accurately.
For instance, if you get 100 applications via Glassdoor and 9 hires, then your sourcing efficiency would be 9/100 x 100 = 9%.
The final goal of sourcing metrics is to reduce the cost of hiring by determining the most efficient channel and investing more in it. Also, it provides a specific channel that does not perform well, and investment can be reduced in such channels.
The submit-to-interview ratio assesses the prescreening quality and effectiveness of recruiters’ efforts. The average value of this ratio in staffing agencies is 3:1.
If the submit-to-interview ratio is high, then it might be possible due to poor screening, perhaps the recruiter’s lack of understanding of the hiring manager’s need. The final goal of this stage Is to measure the hiring manager’s satisfaction and the recruiter’s sourcing effectiveness and achieve a higher standard of submitting to the interview ratio.
To measure this recruiting metric, calculate the number of interviews your hiring team conducts with candidates to extend one offer.
As per NACE (National Association of Colleges and Employers), the average interview-to-offer rate is 42.1% - approximately 42 of every 100 candidates interviewed received an offer.
For example, if a hiring manager chooses to interview 37 applicants and extends 19 offers, then it would be expressed as (19 / 37) x 100 = 51.35 %.
This is a crucial recruiting metric as it indicates the percentage of offers accepted by the applicants. If the candidates don’t accept the job offer, then it might be some problems with the company’s reputation, compensation, and benefits strategies.
For instance, if 7 applicants accepted the job offer and the number of all offered candidates is 16, then the offer acceptance rate would be 7/16 x 100 = 43.75%.
The final goal of this recruitment metric is to find and define why the offer acceptance rate is low. The reasons could be poor candidate experience, dissatisfaction with the salary or benefits, or a better offer elsewhere. This way, recruiters can improve the candidate interaction and engagement problem in the recruitment cycle.
The cost per hire metric includes internal and external expenditures such as; posting a job on various social media channels and job board platforms, referral campaign fees, the expense of job fairs or virtual hiring events, online assessment and interview scheduling and spending for onboarding and training new employees.
The goal of this recruiting metric is to calculate the hiring cost and try to reduce it as much as possible by cutting the cost of the hiring tasks, which are not necessary to spend more amount. Also, focus on spending the amount on effective sources.
The hiring quality is a metric to determine the contribution of the new hires in the company. Also, it measures and determines the value a new hire brings to an organisation. Industry experts agree that the quality of hire can be calculated effectively by considering pre-hire and post-hire performance distinctly.
Pre-hire quality is measured based on the pre-screening part of the recruitment process, such as resume reviewing or skill and qualification checking, and then attracting candidates who could be suitable for the open role.
Whereas Post quality hires assess the quality of the hired employees and their contribution to the firm. Also, it collects data on the company’s turnover and retention rate.
According to LinkedIn, 40% of companies agree that the quality of hire metric is their top priority. The goal of this metric is to improve employee-friendly workplaces and increase their productivity and job satisfaction rate, at the same time enhancing the retention rate.
This recruiting KPI metric is essential for employers to Reach the definitive hiring goal of the organisation. Hence, the recruitment team must know the company goals for a particular time. Hires to goal is the total number of hires the company requirements for a set time period to reach a predetermined hiring goal.
The ultimate goal is to measure the goal completion rate via the hired talent and assess their contribution to the firm. Also, it is essential to make better hiring decisions.
How can employers measure whether they are providing good candidate experience or not? This crucial recruiting KPI measures the experience of the applicants during the hiring process. It provides an understanding of how candidates are likely to recommend you based on their recruiting experience.
Constant interaction and engagement are important for recruiters to keep candidates in the talent pipeline and eventually hire them if they are the right fit for the company. According to the LinkedIn survey, 89% of talent say being contacted by their recruiter can make them accept a job offer faster.
Based on the survey, the question of such a survey could be like this: On a Scale of 1-10, how likely are you to recommend a company, product, or service to a friend or a colleague?
In a survey, the people who recommend the company positively are the promoters and people who don’t recommend it are the detractors. So, if the promoters are 55% and the detractors are 45%, then the NPS will be 55% - 45% = 10%. The ultimate goal of this recruitment metric is to increase the NPS, find the problems in candidate engagement, and mitigate them with a tech-based solution.
This KPI is customisable and differs from company to company. Companies are using website analytics tools and social listening online tools such as Sprout Social or Hootsuite to collect and analyse information on the efficiency of the sourcing channel visitor demographics.
The retention rate depicts that employees are not only staying in the firm for a long time but are also productive and have a higher engagement rate, which eventually increases the company's revenue. It is frequently calculated on a yearly basis.
The talent acquisition metric tracks the total number of workers who remain at the client’s company over a specific time out of the workers at the start of the same period. Hiring managers can utilise this metric to calculate turnover rates and measure the number of employees who leave in the same period.
This recruiting metric calculates the number of candidates who initiated the application process for the open position and move forward and submit it for consideration.
For example, if 155 candidates started filling out applications and 137 candidates submitted applications, then Application Completion Rate would be 137 / 155 = 0.88.
Cost per application KPI is calculated by dividing the cost of job advertisement and personnel marketing expenses by the number of total application recruiters received.
For instance, if recruiters received 37 applications and the cost of advertisement is 300$, then the cost per application ratio would be $300 / 37 applications = 8.1. This means that per application costs 8.1$ to the recruiters.
If hiring managers want to calculate the ratio of rejection in the recruitment process, then this recruiting KPI will help them figure it out. It is performance-based recruiting metrics that indicate how many candidates are categorised as ‘not suitable’ by the recruiters.
For example, if a company receives 155 applications and 68 candidates get rejected, then the rejection rate would be 68 / 155 x 100 = 43.87 %. This metric will tell you how effectively the job Ad has reached the targetted audience and which sourcing channel brings the most suitable talent.
One study mentioned in Glassdoor states that most companies have an 80% candidate drop-off during their hiring process. This recruitment KPI metric is crucial to create a useful future prediction of the hiring process. The main purpose of calculating this metric is to measure how many candidates drop off at every recruitment stage.
Recruiters need to determine all the recruitment stages and must update the status of every applicant regularly and move them to the appropriate stage. Moving candidates to the next stage, withdrawing their application, or even rejecting a candidate for a particular reason, hiring managers will have vital data to analyse.
Tracking the recruitment KPIs can be immensely helpful for corporate HRs and hiring managers to improve the recruitment process in a better way and retain talent in the organisation. These metrics enable them to get valuable feedback insights and make data-driven decisions.
Also, it provides a valuable understanding of how your decision and behaviour would affect the hiring process. Hence, the Recruiting KPIs are vital as they enable employers to analyse multiple hiring metrics and find solutions to improve the recruitment process to a higher standard.
Want to learn more about the crucial recruitment metrics you can track and manage effectively in iSmartRecruit's AI Recruitment Platform? Then, get in touch with our experts to understand how to create, track and extract customised recruitment analytics and reports from our dashboards. Book a Free Demo Now!