Recruitment is a huge part of a company’s success. Bringing in the right employees can enhance and exceed the goals of a business. However, the opposite is also true if the hired employee isn’t a good fit or doesn’t have the right qualifications. To avoid the latter, looking at recruitment metrics can help recruiters make better choices on behalf of their company.
The top 3 metrics for recruitment are:
- Quality of hire
- Time to hire
- Cost per hire
Let’s look at why these metrics are so valuable.
- Quality of Hire
Sometimes abbreviated as QoH, this metric measures the level and quality of the work a new hire brings to a company. Recruiters look at a few things to calculate this:
- Employee turnover rate
- Job performances
- Satisfaction of employees
To get a good idea of the quality a new employee brings to the table, evaluating them shortly after hiring them is best. This can generally be up to a few months post-hire. It should also be after a few weeks to allow the employee to get used to the work. When trying to evaluate quality, a numerical rate is preferred versus a general idea. Formulas have been generated that help with this.
Improving the quality of a new hire is possible as well. Companies should be capable of identifying an employee’s personal and professional weaknesses. An outline of what the company considers to be of good quality work must be created as well to use as a basis.
- Time to Hire
This metric focuses on the time it takes for a business to hire a new employee. Recent years have seen a significant decrease in time to hire due to technological advancements and consumer demand. Alternatively, it makes this metric even more important. Time to hire is defined as the period between when an application is submitted and when someone agrees to come on board as a new employee.
The best way to reduce time to hire while ensuring a new hire is a good addition to the company is to fine-tune the recruitment process. Whether the hiring process is company- or job-focused, it should house the goals and values of the company. Utilizing good electronic hiring tools is vital for this. Online skill assessments, virtual interviews, background checking software, and more are excellent tools that help decrease a company’s time to hire.
- Cost Per Hire
Tied to time to hire, this metric is directly affected by the hiring process. The longer a company takes to hire a new employee, the more money they typically spend. Companies in a hurry to hire may cut corners where they can, decreasing the quality of the hire. While this lowers the cost per hire, lower-quality hires can lead to an elevated turnover rate or the ratio of new employees who leave a company after a few months. The main goal of a company has turned into hiring qualified employees in a short time frame. Instead of focusing on this metric, work on fine-tuning the hiring process without sacrificing quality and skillsets. By doing that, the cost per hire should decrease as well.