Recruiting metrics are an essential part of any data-driven recruitment and hiring strategy. The (supposed) issue is the number of metrics and data points they could measure seems endless.
Organizations constantly find themselves asking which metrics actually matter and what data they should focus on to make the most informed hiring decisions.
To ensure your hiring team leverages the right data, we’re breaking down the 12 most important recruiting metrics you should be tracking. But first, let’s look at what recruiting metrics are and the role they play in hiring top talent.
Recruiting top talent is one of the most important drivers of business success. However with so many recruiting metrics to track, it can be overwhelming to know which ones truly matter.
In this article, we’ll explore the 10 most critical recruiting metrics that provide insight into the effectiveness of your hiring process. Mastering these key metrics will enable you to make data-driven decisions to constantly refine your approach.
1. Time to Hire
Time to hire measures the number of days between when a candidate applies to when they accept a job offer. The shorter the time to hire, the better – top candidates get snapped up quickly in a competitive hiring market.
Aim for a time to hire of less than 30 days. If it creeps higher, look for ways to streamline your hiring process and eliminate bottlenecks.
2. Source of Hire
Tracking where your top hires come from shows which sourcing channels deliver the highest quality candidates.
Analyze this metric over time to double down on your best sources and reduce investment in underperforming channels Referrals, your company’s career site, and niche job boards tend to provide strong hires
3. Cost Per Hire
This recruiting metric calculates your total spending on hiring divided by number of hires. Costs include advertising, agency fees, travel expenses, background checks, and internal recruiting team costs.
Benchmark your cost per hire ratio against industry standards. Work to streamline the hiring process and use automation to drive this figure down.
4. Offer Acceptance Rate
The percentage of candidates who accept job offers shows how appealing your employer brand is. A low rate signals issues like non-competitive pay or a poor candidate experience.
Aim for an offer acceptance rate above 75%. If your rate falls below 50%, undertake research to understand why candidates are rejecting offers.
5. Quality of Hire
Quality of hire measures new employee job performance during their first year. High performers indicate you’re attracting and hiring suitable people.
Use data like performance scores, 360 feedback, and manager satisfaction to calculate this metric. Aim for at least 80% of new hires to achieve a “meets expectations” rating or higher.
6. Applicants Per Opening
This metric displays the number of candidates applying for each job opening. Too few applicants suggests your job ads need broader reach. An excessive flood of applicants makes screening difficult.
Aim for 5-20 qualified applicants per opening. Adjust job post formatting, content, and distribution channels to hit this target range.
7. Time to Productivity
This tracks the number of weeks or months for a new hire to reach full productivity. The faster new employees contribute, the better.
Set clear goals for new hires to achieve key productivity milestones at 30, 60, and 90 days into their new role.
8. First Year Turnover Rate
What percentage of new hires leave within a year of starting? High early turnover is costly due to recruiting and training expenses.
Aim for less than 20% first year turnover. Exit interviews with early leavers can reveal why people depart quickly.
9. Recruiter Performance
Evaluating individual recruiter metrics ensures your team is performing optimally. Useful metrics include email response rate, candidate pipeline generated, and interview-to-hire conversion rate.
Set targets for each metric and track recruiter performance over time. Provide coaching to continually elevate recruiting skills.
10. Candidate Experience Rating
This passive metric provides insights into how candidates perceive your hiring process. Survey candidates at each stage and monitor net promoter scores.
Positive feedback indicates a strong candidate experience. Low scores highlight areas of frustration you need to improve.
Make Data-Driven Recruiting Decisions
In today’s hiring landscape, you need hard metrics to guide your recruiting strategy, not just gut feel.
Consistently analyze this list of key recruiting metrics to pinpoint what’s working well and what needs refinement. The numbers will illuminate strengths to double down on and pain points requiring urgent attention.
With a data-driven approach, you’ll be able to attract and secure top talent more efficiently. Your hiring process will evolve to stay ahead of competitors.
Implementing an HR analytics platform makes tracking these recruiting metrics simple. Dynamic dashboards provide real-time visibility into your performance. Leverage the insights to keep enhancing your talent acquisition capabilities.
The war for talent rages on. Arm yourself with recruiting metrics to build an unstoppable hiring machine. Master these must-track metrics to gain a winning edge.
Quality of hire
This metric refers to the performance of a hire typically within their first year. It also considers the employee’s adjustment time, their acclimation to their teams and culture, and any outcomes of performance reviews.
While measuring quality of hire can be subjective, it’s arguably one of the most important metrics to track. It doesn’t matter how quickly you fill a role, or how much you reduce the cost of hire. Poor performance can indicate you have the wrong candidate filling the wrong role.
Given poor hiring can cost mid-sized and large-scale companies across industries thousands of dollars annually, ensuring you’re measuring quality of hire is crucial.
Time to fill
Time to fill refers to the amount of time it takes to source and hire a new candidate. Typically, recruiters measure time to fill based on the number of days between advertising an open role and hiring the right candidate.
Supply and demand often influence this metric — and several factors can lend to this, such as industry demand or how quickly a hiring team operates.
This metric matters because time to fill helps recruiters and hiring managers better understand how long it usually takes them to fill open roles.
13 HR Metrics You Need to Know
What are recruiting metrics?
Recruiting metrics are measurements used to track hiring success and optimize the process of hiring candidates for an organization. When used correctly, these metrics help evaluate the recruiting process and whether the company is hiring the right people.
What are hiring metrics & why should you use them?
When used properly, these metrics help your hiring team evaluate your recruiting process, the success of your hiring strategies, and whether you’re hiring the right talent for your company.
How many recruiting metrics should a recruiter follow in 2023?
It’s much more complex than that, and this article is going to tell you the 21 recruiting metrics every recruiter should follow in 2023: What Can You Learn From Recruiting Metrics? Recruiting metrics can give you answers to some of the critical questions like: The time it takes to hire employees. How efficient is your recruitment funnel?
How do you calculate a recruiting metric?
This measurement also helps you identify how many new hires you can bring on within a given fiscal year based on your budget. Calculate this recruiting metric by picking a given time frame, adding your total internal and external recruiting costs within it, and then dividing the result by how many employees you hire during that period.
