Top Recruiting Metrics

The most-used recruiting metrics, from a new study by The Newman Group, in conjunction with ERE, of 500 recruiting and staffing professionals of varying company size.

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Open reqs by recruiter 70%
Aggregate time-to-fill 69%
Number of hires per period 60%
Cost per hire 57%
Functional time-to-fill 47%
Internal placement percentage 47%
Offer-to-accept ratio 45%
Interview-to-offer ratio 44%
Decline-to-offer ratio 35%
Diversity 33%
Time-to-fill by exempt/non-exempt reqs 29%

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5 Comments on “Top Recruiting Metrics

  1. Measurement creates focus. Without seeing the options in the survey, the responses listed focus on tasks, expenses, work-load and head count throughput.

    Staffing is a business process that by its nature includes outputs such a: waste (120 day separation rate and its related costs), rework (replacement costs for 120 separations) and performance variation of new hires (performance/productivity range from best to worst hired). These process measures seem to be lacking the attention they deserve, as each has real dollars and economic impact associated with them. These are also the types of measures used to monitor other business processes, thus hold a certain familiarity with the CFO.

    Cost per hire, while interesting, is not a business driver. Open reqs per recruiter is a measure of load, but void of relevance to the process efficiency, recruiter resources for differentiating among candidates, hiring manager availability and the like.

    Staffing process owners will gain greater attention, credibility and funding when the metrics focus on the economic impact of the product delivered – new hire productivity.

    Think its time for better metrics? Go figure.

    Joseph P. Murphy
    Shaker Consulting Group
    Developers of the Virtual Job Tryout®

  2. I agree with Joe. Not one of those metrics listed looks at candidate quality in terms of the ability to perform on the job. I continue to be amazed by what I see as a lack of interest in looking at the real ROI related to the hiring process.

  3. All of us have a goal of hiring the best employees for our workplace, because we know the impact of hiring and retaining the best of the best will have on our business processes, customer relations, and overall results.

    Why are companies looking to start measuring and reporting on Quality of Hire? The links between high performing companies and the number and type of high performing employees are obvious. Leading companies with leading HR and Talent Management strategies are searching for methods to show the links between strong Human Capital Practices and Company Performance.This last spring, I hosted a seminar in St Louis on the illusive staffing metric: Quality of Hire.

    Like my friend Joe Murphy said, the old metrics are not going to show us the way.

    Some of our research says these that these are some of the new metrics we should be considering:
    -Retention Rates of new hires
    -Time to productivity for new hires
    -Forced Ranking potential of new hires
    -Key New hire voluntary/ Involuntary turnover rate
    -Mgr satisfaction with on the job performance of new hire
    -Manager satisfaction with the hiring process (responsiveness, cost, time)
    -Salary increase % of new hires vs other employees
    -Number of months to promotion of new hires
    -Manager subjective assessment of performance of the hire after 1 and 6 months

    Design your metrics collaboratively with key stakeholders (CFO, Top managers, and hiring managers) to ensure credibility. Convert your statistics to dollar impacts whenever possible to demonstrate the economic value of recruiting and retaining top performers!

    The key is tying your talent management strategy and measurements to your business objectives and results.

    Jeff Struve
    Human Capital and Talent Acquisition Solutions LLC
    St Louis, MO

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