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