Recruiting Metrics: How To Get The Best ROI

By James Moore, Director of Talent Acquisition for Excelsior

recruiting metrics

I’ve found that the best way to get a ROI out of recruitment is by creating recruitment metrics that measure key areas of concern as they relate to your specific business strategies. I know this sounds very fundamental and simplistic, but when done correctly, you can map out determining factors that can help gain leverage and momentum in the recruiting process.

As with all measurement systems, recruiting metrics should be designed to manage and measure staff recruiting efficiency, effectiveness and alignment with the environment, culture, mission, values and strategy of the organization. Our company President often says, “What gets tracked and measured gets done and what does not, you can’t manage.” This concept is similar to what is known as Management by Objectives (MBO) or “manage to results,” which was made famous by Peter Drucker in his 1954 book, The Practice of Management.

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Being able to map out the criteria of the recruitment process can be instrumental to gaining the ROI you are seeking. Here are a few of those indicators:

  • Hiring Time – time taken to fill a vacancy from posting to offer; measures the efficiency of the current recruitment process by the number of days/hours to fill a role.
  • Recruitment Cost – average costs involved in the recruitment process; provides indication of how much it costs to hire an employee, which could be more significant than you initially think. Recruitment costs can include:
    1. Advertisement
    2. Time spent reviewing resumes
    3. Time spent interviewing
    4. Cost of not having someone in the open role
    5. Impact on current staff
    6. Training cost
    7. And, of course, any recruiting fees you may be paying to either internal or external recruiters

And this is just to name a few.

  • Fill ratio – average time required to fill a vacancy. This will give you a spotlight on the efficiency and effectiveness of your current recruitment process. Ask yourself, “is our process working and cost effective?”
  • Interviews per vacancy – average number of interviews completed before an offer is made. This helps define the thoroughness of the recruitment process but also helps to measure the effectiveness of time spent.
  • Recruiting staff size – number of staff actively completing the entire recruitment life cycle process; utilized as a benchmark to measure the process and the time spent hiring a key role for your company. Ask yourself, “Do we have enough hands on deck to get the results?”  Remember that every day without this key position being filled is money lost for the organization.
  • Candidate pool size compared to Recruiting staff per vacancy – which gives us two things, the average number of candidates per open role, as well as the number of roles one recruiter can handle efficiently. This will give you insight into the success your organization has at attracting potential employees as well as a way to streamline the process to become cost effective for you and time efficient for the recruiter.

As you know, this list could go on and on. Being able to measure the effectiveness of your recruiting efforts for your organization is instrumental to your business and revenue growth. It’s the talent you have employed that fuels your business and the process it takes to get them employed. I would definitely suggest immediately establishing recruiting metrics for your company, and once it’s complete, ask yourself an important question: “Am I getting the Return on Investment in my current recruitment process?”

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