What is Recruitment Marketing? - Complete Guide
Recruitment marketing refers to all of those techniques hiring professionals implement to source, attract, engage, and nurture can...
Recruitment metrics are one of the crucial components of data-driven hiring and recruitment. Moreover, help the recruiter to measure the success and failure of the recruitment process. Check out this blog to know what is the meaning of recruitment metrics and what are the recruitment metrics to measure success.
To properly measure the success of your recruiting agency, recruitment metrics are used. There are many different calculations and formulas to find numbers related to differing fields.
When taking these figures into account, you can properly determine how effective your recruitment agency is. It's important to take a deep look into your metrics so you can precisely measure how well your application process is.
Recruitment metrics are considered as a measurement of recruitment success by gathering, analysing, and tracking recruiting data. The result will help the recruiters to optimize the hiring approach in various terms and aspects in order to generate more ROI.
Recruitment metrics are the measurement that presents the well-being and productiveness of the Talent acquisition and recruitment marketing process. These matrices are powerful instruments that permit you to enhance the recruitment approach by improving the team and candidate experience. Moreover, it also helps you to find out the black hole within the hiring process.
In this competitive era with the digital landscape, we need a data-driven approach in recruitment excessively in order to survive in the market. The recruitment metrics provide you with real insight into your existing recruiting process instead of just intuitions. These insights take you toward the right path of the decision through real data and reports.
For measuring the success and health of the hiring process, many recruitment metrics are obtainable. Thus, it can be difficult for recruiters or recruiting agencies to give priority to which recruiting metrics. Here are some various key recruitment metrics and what they mean to your agency.
Application completion rate directly correlates with the total number of applications received for a single job. This recruitment metric gives insight into the application process and platforms that are used for the job posting.
The number of applications received for a single job matters to know, do you have the right application process approach? Or using the right platforms for a job posting?
If the application completion rate is meagre, that means either the reach of the job opening is insufficient or the process of application submission is long-drag-out. Many more reasons are there for a low application completion rate, such as:
Consequently, by finding out the completion rate, you are able to identify the reason for low arriving applications. And you can work on optimizing the process in order to increase the number of application submissions.
Cost per hire is directly related to the total amount in terms of money and resource has been spent on a single hire. Thus, cost per hire provides the measurement of the amount spent to fill the open position. And this shows the cost of investment in recruiting and hiring the candidate.
It takes the total cost investment like recruiting fees, advertisement, etc., and divides it by the total number of hires that take place through the recruitment efforts.
Every talent acquisition leader, once in a while, reaches the point where they need to measure the return on investment. By calculating all costs per hire of every open job, leaders can determine the average amount that is spent on hiring new talent. With the help of this matrix, hiring managers can set a new and realistic benchmark for future hiring.
When you hire somebody, you have ways of measuring their performance. This can be done with a scorecard, and employers can use this as a way of determining the value of new applicants. This recruitment metric includes various factors to tag the hire as a quality one, such as retention rate, culture fit, management fit, etc.
The initial step of finding the quality of hires defines the factors for measuring the quality of new hires. The performance of hire always includes the counting of 1 to 100 as a scorecard.
When measuring this, you are not only determining their strength on the screening but them as actual employees. This is perhaps one of the most significant metrics in looking at the long-term growth of a hire. Long-term employees will always end up being the most valuable employees. By measuring this matrix, employers can keep the health of their existing new hires as well as the health of future hires.
The turnover rate is associated with the total number of new hires who have left the job due to various reasons, namely, termination, resignation, or job abandonment within a year.
Determine the first-year turnover and then divide the number of employees who leave your firm by the total number of employees a year. Recruitment agencies can then view this metric and get a deeper look into the employees' perspectives.
The firms you are connected to will determine your reputation, so you do not want your applicants to go into a lousy firm. With a Talent Acquisition System able to automatically calculate this and sort out the underperforming firms, good recruiters are able to use this tool effectively to weed out the underwhelming clients.
After leaving the job within a year, refilling the position again is no lower than a hassle and makes the recruiting process expensive. The turnover rate helps the business to know different aspects of turnover rate, such as:
To calculate the efficiency of hiring, divide the recruiting costs by the starting pay of new employees. The efficiency ratio is directly linked with how efficient your existing hiring is.
Calculating this gives you an idea of how many applicants you are able to take. This is important for the long-term growth of your business so you can meticulously configure your model into one that is not economically detrimental.
Present to interview ratio is about the total number of candidates selected for the interview phase. By looking at the ratio of candidates presented and candidates qualified, you are able to see how well the recruiting agency is filtering through candidates.
If a large portion of applicants is not getting through the hiring manager, then it is obvious that the recruitment agency may not have properly screened the applicant to view their qualifications. Online recruitment software improves this number by allowing easy online screening and fast recruitment.
Once you effectively screen each applicant, you can also keep a high number of applicants overall since the process is done online.
If you apply for a job and do not get a response in time, you will most likely accept the next call-up. To reduce the number of applicants that decline your acceptance because of this, automated software is available to automatically accept and decline applicants right away.
Measuring the exact time between the interview and the manager's response is still crucial. This is because valuable applicants may not be available when you do end up responding back. This is especially important in today's competitive market, so narrowing that time gap is going to be the key to success for any recruitment agency.
Time to hire is also known as a time to fill. And it is associated with the overall time spent to fill a single open position. This is one of the significant recruitment metrics that shows time is real money.
By calculating the time to hire, employers and the human resource department get a clear picture of time. The total time they are investing in recruiting methodology. Moreover, collect insight into, if they spend too much time hiring a single candidate or spending too less. And that directly affects the quality of the hire and is stated as a bad hire.
Thus, stop assuming and start measuring. In this 21st century, almost every recruiting agency and recruiter uses different kinds of software. The software might be the Applicant tracking system or Candidate relationship management software. The reason is to streamline the approach to hiring.
But if you measure your recruitment metrics to know the black holes of hiring, then you can use the recruiting software much more efficiently. Furthermore, the online recruitment software provides you with some deep insight into your existing recruitment process in the form of reports and graphs. Thus, choose the best one, like iSmartRecruit.