Key metrics, also known as quantifiable measures, are used by businesses to gauge their performance and are integral to understanding and improving the hiring process. Hiring managers need to identify and track these crucial metrics to make informed decisions and enhance their recruitment strategies. However, it’s not just hiring managers that need to know this – your executive team will likely be looking at these metrics, too. Reporting on these key metrics can help you better make the case for process changes and position yourself as a strategic leader.
A successful hiring plan will incorporate these key metrics.
1) Hiring Time
Hiring time represents the entire duration of the hiring process, from posting the job to fully onboarding the new hire.
Why it matters: Understanding the average time taken to fill a position empowers hiring managers to structure the candidate experience, and help set expectations for both your team and potential hires. make strategic plans, accommodate expected time lapses, and better prepare for the hiring process.
Why it matters to your executives: Your CEO understands that hiring time directly impacts business operations and team productivity. By monitoring hiring time, you can provide your leadership with realistic expectations of when a new hire will be up and running. This helps them make contingency plans to keep the business running smoothly.
2) Hiring Sources
Knowing where candidates are sourced from is vital. This metric considers the platforms candidates use to discover job openings (or where their resume was sourced from), the ratio of passive to active job seekers, and the impact of referrals.
Why it matters: Understanding where candidates originate provides valuable data on the effectiveness of various sourcing channels and, most importantly, the quality of hires they bring. This helps you better identify the most effective hiring sources and improve strategies for generating candidate referrals.
Why it matters to your executive: Where you get your candidates often comes with a cost, whether it’s to a job board, staffing agency, or advertising. When you can clearly show at budget time which channels result in quality hires, you are more likely to get buy-in from your leadership team.
3) Cost of Hiring
Hiring comes with significant expenses, often totaling close to $50,000 when considering various aspects such as paperwork, onboarding, and training.
Why it matters: Tracking the cost of hiring helps managers prepare for expenses, identify potential inefficiencies, and optimize resource allocation to save money in the long run.
Why it matters to your executives: Not surprisingly, leadership is always mindful of the financial implications of the hiring process. Tracking the cost of hiring allows them to make well-informed budgetary decisions, identify areas for cost optimization, and ensure that resources are allocated efficiently.
4) Retention Rates
High turnover rates can signal underlying issues in onboarding processes, the work environment, or any number of other problems (compensation, benefits, location, lack of career growth, etc.).
Why it matters: Monitoring retention rates allows managers to identify patterns, gather employee feedback, and take proactive measures to enhance employee engagement and satisfaction.
Why it matters to your executives: Retention rates hold significant meaning for executives as they reflect employee satisfaction, engagement, and overall organizational health.
