Metrics are becoming more and more essential for successful recruiting managers. Unfortunately, most metrics that are regularly used in recruiting cover administrative rather than strategic areas. These are my top recommended strategic ó as opposed to administrative ó recruiting metrics:
- Performance of hire: On-the-job performance ratings (or performance appraisals) after 6 or 12 months in the job.
- New hire failure rate: The percentage of new hires in key jobs that were terminated or asked to leave.
- Turnover of new hires: The percentage of hires that voluntarily quit within their first year, or average tenure compared to a standard.
- Start dates met: The percentage of key positions filled by the manager’s designated need date.
- Manager satisfaction: The percentage of key managers who are satisfied with the hiring process and the candidates.
- New hire satisfaction: The percentage of new hires in key jobs and applicants for key jobs who are satisfied with the hiring process.
- Giveaway/takeaway ratio: The number of employees in key jobs that you “poach” from a direct competitor firm, compared to the number they poach from you.
- Project delays: The number of projects that are delayed because of talent shortages.
- New hire time to productivity: The time it takes for new hires to meet the minimum output standard.
- Source quality: The percentage of the hires in key jobs, by source, with the highest on-the-job performance and tenure rates.
- Referral rate: The percentage of hires from employee referrals (indicating your employees believe you have a good-place-to-work brand).
- Diversity hires: The percentage of hires in key jobs that are diverse.
- Training success: Scores by new hires on mandatory initial training.
- Boomerangs: The percentage of top performers who left the firm but who have been re-hired (as a result of recruiter contacts).
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Other evidence that your recruiting efforts are having a strategic impact:
- Your results are mentioned in the annual report.
- Recruiting does not appear on any executive committee agenda (indicating that there are no major recruiting problems).
- Managers cite you in a survey as a prime contributor to business success and productivity.
- Other major firms benchmark against your results and practices.