| If you are not currently using Hr recruiting metrics to | | | | company. By compiling new hire performance data, |
| measure new hire quality or hiring manager | | | | you will be able to see how well new hires adjust, if |
| satisfaction, then you should begin doing so as this | | | | additional training is required, or if more information |
| information could be very valuable in explaining | | | | needs to be passed on to the new hire during the |
| changes that need to take place in the recruiting | | | | recruitment or orientation stages. |
| system or simply offer ways to make a good system | | | | If you notice, for example, that large a number of new |
| even better. | | | | hires leave the company before their evaluation period |
| While you do not have to implement all of these | | | | is up, and then you need to find out why they are |
| metrics at once, choose one or two that will help your | | | | leaving as this will effect the company’s reputation |
| recruiting system immediately and work from there. | | | | over time. There are many reasons when new |
| Over time, you can add more metrics until an entire | | | | employees leave: |
| measuring system has been created. | | | | - Incorrect information given during recruitment |
| | | | stage· Inadequate training |
| The Big Five The five recruitment metrics used by | | | | - New hires not given the position they were originally |
| recruiters are: | | | | hired for |
| - Recruiting Cost ratio (this includes staffing costs and | | | | - Policy changes implemented after new hire started |
| new employee salaries over the year) | | | | - Shift changes after new hire started |
| - Recruiting efficiency | | | | - Family/personal issues |
| - New hire performance | | | | These are all possibilities that will have to be |
| - Hiring manager satisfaction | | | | investigated. |
| - Employee starts (difference between date of offer | | | | Tracking new hire performance will also give you |
| and actual start date) | | | | perspective into the types of personalities that stay |
| Metrics like these can be approached in different | | | | with the company and those that don’t. This may |
| ways. Understanding how your company operates | | | | help when recruiting others. |
| and the individuals within departments will help you | | | | Hiring Manager Satisfaction |
| conduct your research. Even if you don’t | | | | |
| incorporate all five metrics into your recruiting analysis, | | | | Understanding what hiring managers expect from HR |
| it is in your best interest to choose metrics that will be | | | | recruiting is important because it is up to recruiters and |
| valuable. Improving the recruitment process will not only | | | | managers to help new hires adjust to their new |
| save money, it will also build your company’s | | | | positions. Grading recruiters on their efforts is a way to |
| reputation which will attract more qualified candidates, | | | | judge the recruitment process overall. If a hiring |
| diversity, and innovative employees. | | | | manager is not familiar with the grading system used |
| Recruiting Cost Ratio | | | | to determine overall satisfaction, you should inform all |
| The recruiting cost ratio is simply a number used to | | | | hiring managers the criteria used in rating satisfaction |
| describe how much money HR spends on recruiting | | | | so each manager will be able to give accurate |
| new employees. This is a simple calculation: | | | | feedback. You can help hiring managers in a variety |
| RCR = (Total Staffing Costs / Total Compensation | | | | of ways with feedback: |
| Recruited) x 100* | | | | - Create a questionnaire before implementing a |
| Total staffing costs include recruiter travel, events, cost | | | | manger feedback policy. Ask managers what they |
| for job fairs, paperwork, supplies, recruiter salaries, | | | | are looking for and what they expect. Use this |
| bonus’ offered to new hires, and any other | | | | information to discuss a grading system or other |
| expenses your department needs in order to function | | | | system that will provide accurate feedback. |
| properly. | | | | - Make sure all managers are on board before |
| Total compensation recruited refers to new hire | | | | implementing this system. |
| employee salaries or hourly wages for that year. | | | | - Ask for new hire feedback by sending periodic |
| If you add these numbers and end up with a low | | | | questionnaires that include criteria chosen by you and |
| percentage, then you are on the right track to | | | | the mangers. This will make giving feedback easier |
| becoming a more efficient department. If the | | | | because managers already know what to expect on |
| percentage is higher than if should be, then you should | | | | the questionnaire. |
| look at where the department is spending money and | | | | - Use a simple grading system and spend a few |
| the types of positions that were filled in order to justify | | | | minutes with hiring managers periodically interviewing |
| costs or in order to find ways to cut costs in the | | | | them on the pros and cons of the current recruiting |
| future. | | | | process. |
| Recruiting Efficiency | | | | While it is difficult to make all managers happy, you will |
| This is another metric used to determine how efficient | | | | be able to compare responses and see similarities |
| HR is about recruiting new hires and balancing | | | | which can be used to make changes to the current |
| expenses. After figuring out the recruiting cost ratio, | | | | recruiting system. |
| you should subtract 1 from the percentage to figure | | | | Employee Starts |
| out how efficient the department is. Recruiting | | | | This refers to the time between signing a contract to |
| efficiency numbers should be high in order to be | | | | the actual start date for new employees. The time |
| considered efficient.Becoming more efficient may | | | | between should be as short as possible, otherwise the |
| require hiring more employees during the year to justify | | | | cost of holding a position becomes very expensive. |
| costs, cutting costs by traveling less, or not participating | | | | This time can be calculated very easily: |
| in those job fairs that cost too much and yield little in | | | | Time = (Actual Time to Start / Contracted Time to |
| respect to new hires. Tracking how people find your | | | | Start) x 100* |
| company is an excellent way to judge venues that are | | | | If the percentage ends up being over 100, then too |
| successful and those that are not. These metrics | | | | much time is lapsing between contract signing and the |
| may be good starting points if you haven’t been | | | | first day of work. Monitoring this time can help make |
| using metrics to measure the recruiting process so far. | | | | the recruiting process more efficient. By having a more |
| Understanding how much is being spent on recruiting | | | | accurate idea of start dates, recruiters will be able to |
| and the success rates will give you a good idea on | | | | manage their time and be able to interview more or |
| where improvements should be made. | | | | less candidates, fill other positions while waiting for the |
| | | | ideal candidates, or be able to pursue other hiring |
| New Hire Performance | | | | venues. |
| When gauging new hire performance, it is important to | | | | |
| be consistent and maintain a record of all new hires in | | | | Metrics in a Nutshell |
| each department. In order to do this, you will need | | | | Recruiting metrics can help make HR departments |
| assistance from the hiring manager. | | | | more efficient. It is important to not only gather data |
| Before implementing this metric, discuss grading | | | | using metrics, it is also important to devise a plan using |
| systems with hiring managers and decide on a | | | | the data to create a better recruitment system. This |
| universal system. This can be a grading system or a | | | | may mean monitoring recruitment spending, time |
| point system. Make sure all managers understand the | | | | between hiring and actual start dates, and |
| system and are willing to use it. | | | | implementing changes based on hiring managers |
| The best time to evaluate new hires is between 90 | | | | evaluations. |
| and 180 days after they started working for the | | | | |