What are recruitment KPIs? Isn’t that the first question that comes into the mind of recruiters like us? See, each organization is different, and their difference is reflected in their hiring process. Hence, at one point in time, it becomes of utmost importance to have talent acquisition metrics for the recruitment process. The primary reason for this assessment is to ensure that the recruitment team stands aloof to factors like efficiency, time to hire, and accurate candidate analysis.
However, there are times when hiring managers keep wondering what the best recruitment KPIs and talent acquisition metrics to consider for their organization. And truth be told; indeed, there are several metrics to consider that can help in your journey of becoming the best recruitment specialist. Let’s dive a little deeper into this.
Reduce Time to fill
There is a certain time that each hiring manager takes to fulfill the job vacancy of their organization; this is called time to fill or time to hire. Basically, it is the recruitment KPIs that are measured to take an average number of days it takes to fill a job recruitment. So the faster you can fill the requirement raised by the other teams, the less time to hire it is. However, there is a flaw in this system: a slow time to hire can drastically reduce the quality of hiring and minimize the candidate’s hiring experience, making them drop out from the hiring process itself.
Hence, it becomes quite important for the recruiter to keep the TAT for onboarding minimum. A sweet example of this would be to check how much time it is taking to get a candidate onboard with the company, from entry to ATS to joining the office. If a large number of candidates were in the beginning, but only a few finished the onboarding process. Perhaps you should consider revising the hiring process and minimizing the step for recruitment. And that’s why the time to fill/hire recruitment KPIs becomes a crucial factor in the talent acquisition metrics.
Also Read: Explained: What Is Full Cycle Recruitment?
Maintain the quality of hire
It is true that maintaining the quality of hiring is a challenge. You can keep in account all the steps to hire the best candidate, such as shortlisting the CV, taking a quality introduction session, deep technical skill assessment, HR rounds, and document verification. However, we still don’t know if the hiring will turn out to be positive for the organizational benefit. The quite simple answer to this problem is the process of evaluation of the candidate, you see, each candidate is different, and each one has different needs and aspirations. If the organization is able to match the candidate’s needs and aspirational values effectively, then it turns out to be a quality hiring.
Hence, it is important for the organization to measure the quality of hiring, it helps the recruiters in analyzing the candidate’s performance and come to an effective solution to better the quality of hire and recruitment KPIs. One way to do this is to ensure that there is a structured hiring process traand each candidate is given a fair and unbiased platform to showcase their talent and skills. It also helps in making the candidate interview more swift and qualitative and improves the overall candidate hiring experience.
Reducing the cost of hiring a candidate
Most of us don’t realize this, but there is a certain hiring cost that is involved in the hiring process of a candidate. Be it advertising for job vacancies, hiring an agency as a third-party recruiter, interviewing expenses for overseas candidates, and accommodation costs for the hiring for higher profiles, cost to train the candidate such as fresher before joining. All of these factors make the hiring process a little costly for the organization to bear, this can take a toll on the hiring budget if it is overlooked. Hence, it is important for recruiters to ensure that the cost to hire the candidate is as minimal as possible.
A simple solution to this would be introducing an online hiring platform and video interviews to the hiring process wherever it is possible. With this, the recruitment team would also be able to collect the necessary hiring data to improve their recruitment KPIS and talent acquisition metrics.
Reduce adverse impact
First things first, it is indeed quite a challenge to reduce the adverse impacts during the hiring process in one go. It is a prolonged process that involves not just creating a good candidate experience but also ensuring that each interviewer is top-notch and adheres to the quality guidelines of the interview. The rule is quite simple and states that a certain protected class should not be discriminated against on the basis of caste, creed, gender, or ethnicity. And frankly, it is not quite simple to minimize every single basis from the hiring process until proper and constant interviewer training is conducted.
Hence, it is a necessary recruitment KPIs to keep in check that each interviewer is adequately trained. It also helps in creating a diverse work culture within the organization, bringing in new ideas and openness to cultural knowledge across the globe. Ideally, each recruiter should keep a database of how many protected class candidates were screened and, from those, how many were selected; if the data shows negative results, then perhaps it is time to channel a different strategy for hiring.
Keep the retention rate low
The key challenge in front of today’s corporate work culture is the rising retention rate, and let me tell you this: there is no good answer. It is a bitter truth that perhaps each organization needs to buckle up, digest, and sit together with their team to figure out a solution. However, the most prominent reasons for retention rates tend to be increment and job satisfaction, for some, it can be work culture, and for some, it can be a performance issue. Whatever the case might be, a rising retention rate is an alarm not just for the human resource team but for the company as well. As there might be an issue with the company’s work culture, the impact of a rising retention rate is completely negative for a company, as this disrupts the bandwidth and mental state of all the employees working together.
Thus, it is crucial for organizations to identify the retention rate at the earliest and start working towards the goal of minimizing it. The core problem for the rise of retention rate will vary from organization to organization. However, the determination to improve the performance score will lead the human resource team in tackling the situation in a much better way. Hence, it becomes necessary for recruitment KPIs and talent acquisition metrics to be considered.
At the end
These are the 5 recruitment KPIs and talent acquisition metrics that one needs to consider while hiring any candidate. However, this largely depends on the job profile and type of organization that one is recruiting for. The one that this quite true is that if hiring managers keep the metrics in check, and surely they would be able to increase recruitment efficiently within the organization.