Are you keeping track of the recruiting metrics that matter? Here are the top five metrics that every Human Resources Manager should be measuring in 2022.
According to research done by Aptitude, 76% of hiring managers believe that attracting top-quality candidates is their biggest challenge. It is a no-brainer that today’s recruiting practices are more complex than ever. Successful recruiting strategies require talent acquisition managers to take into account a metric-driven approach.
However, there are many stages in the recruiting funnel to consider, meaning that identifying the metrics to measure might prove to be a daunting task. This is because you are accountable for everything from candidate sourcing and hiring manager satisfaction to quality of hire.
Considering all these processes, it is evident that there may be plenty of metrics that recruiting teams can track when looking to get the best hires.
However, some may be more important than others as it all falls down to what your business considers success in terms of recruitment.
Nevertheless, it’s important to have a list of the most important metrics to follow; otherwise, if you spent your time and other resources tracking every bit of metric that you can find online, you will be left with no time to do the actual recruiting.
In this post, we highlight five of the most important recruiting metrics to track in 2022, regardless of the industry you’re in.
But first, what exactly are recruiting metrics?
What are recruiting metrics?
Recruiting metrics are measurements used by hiring managers to track their hiring success and optimize the process of hiring future candidates. These metrics help evaluate the entire recruitment process, giving insight into whether the organization is hiring the right people and using the right methods.
Also referred to as hiring metrics or staffing metrics, these measurements are also important as they help ensure that the recruitment process is diverse, inclusive, and fair for all candidates.
Most important recruitment metrics of 2022
1. Time to fill
Time to fill refers to the time it takes to find and hire a new candidate. It is measured by the number of days between publishing a job opening to offering a successful applicant an offer letter.
Some of the biggest influencers of this metric are supply and demand. The other main determinants are industry demands and how fast the hiring department operates.
This is an important metric to track as it measures the efficiency of your recruiting process. Benchmarking using your experiences is a good starting point, as you figure out how long it takes during candidate acquisition, the filtering process, interviews, and finally handing over an offer letter.
This way, you can easily work on the best ways to improve your processes should you notice it takes you longer than the average period to fill such a position in similar industries.
2. Cost per hire
It is important to keep track of the total amount spent during any recruitment process. It can be calculated by the total cost invested divided by the number of new hires.
This is an important metric to measure as it shows you how much you spend on single and multiple hires and your average cost. You can easily build realistic future hiring budgets, cut unnecessary costs, and save on resources by setting cost-effective hiring strategies.
3. Hires per month
How many new hires does your organization require? What’s the average number of new employees onboarded in a month?
This is one of the universal metrics for recruitment teams to track as they paint a picture of the company’s growth.
Once you track the hires per month for a particular organization, it will help you develop a robust strategic plan based on the size and hiring capacities. Furthermore, the current market trends and nature of the roles are also crucial to consider.
4. Source of hire
The source of hire considers the various channels that your new candidates are sourced from.
This metric is helpful as it points you towards the sources to spend more time on, as they are seen to provide better, high-quality applicants. Knowing this information helps recruiting managers to control their budget allocation/ planning and know where to focus more efforts.
Understanding the pipelines of previous candidates will help you predict recruitment patterns for future hires.
5. Attrition rate
The attrition rate is when organizations lose employees within a given period.
It is a no-brainer that replacing top talent can be costly. You need to consider extra recruiting and hiring costs and the resources required to onboard new talent. Besides attracting them, you also need to retain top talent.
It would be prudent to keep track of the organization’s attrition rate to better understand whether the job descriptions and postings accurately communicate expectations. Furthermore, it helps determine whether the hiring teams are transparent during the recruitment process regarding the major aspects of the job.
Focusing on metric-driven recruitment
Metric-driven recruitment processes are an absolute must, given the complexity of today’s recruiting. With the above metrics, you can easily build a high-performing recruiting function to consistently deliver top talent for your organization.
It is a no-brainer this entire process eats up too much of your time, which you’d have used to focus on more important things – like running your business. Forget all that hassle and leave the work to metric-driven recruiters and staffing agencies like Mindsoft to source, recruit, and retain top talent that will drive your company to success.