Why You Need a Wide Talent Pool
Upper management often requires metrics such as recruitment volumes, costs, and effectiveness from HR departments. While all this recruitment-related data often exists, it usually needs to be gathered from various sources and combined in Excel sheets through massive data collection processes each quarter.
How can you gather data more efficiently? What do the metrics actually tell us about recruitment, and what are the most important recruitment KPIs? Let’s start with the basics.
Some of the most widely used recruitment metrics are
Reporting these numbers gives one side of the story. Knowing how much time and money were invested in securing the results is very important as well. On average, it takes 27 days to fill a position. Do you know your number? How about the cost? The industry average over the past few years was around 4,000 EUR per hire.
It’s pretty normal not to know your numbers—only 41% of companies report the cost per hire. Nonetheless, adding the following metrics to your recruitment data reporting is highly advisable:
It’s good to know how many new employees you hired last year. However, without knowing how many of them were to replace retiring personnel, for example, we’re not seeing the whole picture. Hence, add the following KPI to your reporting:
You know what to start measuring, but how can you find this valuable data? Being able to pull the numbers above in real-time requires a concise and coherent data source. If you have a good ATS, you can probably pull most of the data directly from your system and then stitch it together to find your relevant KPIs to steer the group. If not, now is the right time to change to a more modern ATS that supports the most important recruitment metrics.
The traditional metrics listed above are clean numbers that reflect trends on a high level. But what about the quality? Wouldn’t it be beneficial to know the success ratio on a more relevant level? Some of the more soft but sophisticated KPIs that organizations are following are
When all this data is available, you are in a position to analyze and improve your recruitment activities in each of the phases.
It goes without saying that increasing the candidate experience and relevance of candidates increases the success ratio for your recruitment. If you’re in a consumer business, you should be even more interested in the candidate experience because a poor candidate experience can negatively affect buying behavior.
By monitoring the candidate experience in real-time, you can quickly make changes to your recruitment process. It is beneficial to know what your candidates actually think about your process. Perhaps your recruitment process takes too long, you do not communicate enough during the process, or your candidates would love to get more feedback about why they were not selected. By collecting feedback, you will know how they feel and what you can improve.
Also, learning why your offers have been rejected may save you from making the same mistakes again and save a lot of time and money in future recruitment efforts. Furthermore, knowing which (paid) channels work best for you increases your chances of finding the match for less money.
Analyzing recruitment data can help organizations recruit smarter, more efficiently, and with better precision. Every organization must evaluate their relevant KPIs, but the most important thing is to start gathering data.
Want to know how to gather, analyze, and visualize your recruitment data effectively and in real-time with TalentAdore?