Anything that needs to be improved should be measured. This goes the same for your talent acquisition strategy.
Companies should look into their talent acquisition strategy and use their talent acquisition and recruitment data to check what’s working and what is not. Like someone said, “What gets measured gets improved.”
A robust talent acquisition strategy can not only save you time and money but also helps you attract the best talent from the market. So, how do you measure if your talent acquisition is working? Here are seven metrics or tips for evaluating your talent recruitment process.
7 Parameters that Help you Measure your Talent Acquisition Strategy
Quality of Hire
The quality of hire tops the list of performance KPIs as it is the value new hires bring to the company. It shows if your talent acquisition strategy is working or not and how good your hiring team is.
The definition for quality of hire varies from organization to organization. Some employers define it as how well the candidates perform in the first few months and fit the company culture. For others, it is the turnover, performance, and promotion rates in a specific period.
Time to Hire
Time to hire is another metric that provides factual information about how your talent acquisition team is performing and how to improve your strategy.
No matter how big or small your organization is, it is ideal to keep the time-to-fill position low. Talent exists in the market for only ten days. According to a survey, around 57% of job seekers find the interview process boring and less interesting if it is lengthy. The majority of companies consider the average time-to-hire is between 7 to 15 days. So, if your hiring takes too long, it is a clue that your strategy needs to be improved.
Cost per Hire
Analyzing the cost per hire is essential to managing your recruitment budget effectively. The cost per hire is the money you spend on recruiting from start to end of the process. The cost of hire is the sum of all internal and external recruiting costs divided by the number of hires. The internal recruiting expenses include costs associated with your talent acquisition teams, such as recruiter salaries, employee referrals, interview, and administration costs. The external recruiting costs include advertising costs, technology costs, and expenses related to job fairs, relocation, travel, signing bonuses, agency fees, etc.
Usually, the higher you spend on each position, the better ones you hire. However, if your cost per hire is higher, but your time-to-fill and quality of hire are lower, you will have to revise your recruiting strategies.
Potential Candidates per Opening
The candidates that pass the screening process fall into the category of potential hires or qualified candidates. It is a crucial metric to be measured because it shows how successful your talent acquisition strategy is. When you can attract the right candidates, the number of qualified candidates increases which is much better than attracting unqualified candidates and making it harder to fill the position.
You can improve the number of potential candidates per hire by writing clearer job descriptions and defining candidate persona so that you know whom to target.
Sourcing Analytics
Sourcing analytics help you study the performance of different job boards and platforms to advertise your job openings. It allows you to understand which channels are working and which ones you still need to improve. Recruiters use different channels to post job openings: Indeed, Dice, LinkedIn, Facebook, employee referral, etc.
To understand the performance of your sourcing strategy, you need to tag candidates to channels they submitted their applications from or where the recruiter found the profile.
Today, there are numerous ways of sourcing candidates. It is crucial to try and test different channels and keep track of how they’re working.
A brilliantly designed ATS not only publishes your jobs on various channels but keeps all your sourcing data organized and makes measuring your strategies easy.
Offer Acceptance Rate
Offer acceptance rate is the ratio of the number of candidates accepting a job offer and the number of candidates you offered the job. The effective your talent acquisition strategy is, the higher the offer-acceptance rate will be. Although some candidates refuse your offer because they got a better offer, the work culture, compensation, and flexibility can also be the reasons. The offer acceptance rate is one of the important metrics to measure and improve your talent acquisition strategy.
Satisfaction Rate
This is the metric that companies often ignore. The satisfaction rate indicates how happy your new hires are throughout the recruitment process and after joining the company. It is vital to measure your candidates’ satisfaction because it also affects offer acceptance and attrition rates. The attrition rate is the rate of candidates leaving the job in a certain period. If you don’t improve your satisfaction rate, you will see your new employees leaving soon.
One of the biggest mistakes most employers make is they don’t assess the performance of their talent acquisition process. Measuring talent acquisition strategy will enable you to understand how your talent acquisition team and their strategies impact your business.
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