Understanding key recruiting analytics to improve hiring performance
May 5, 2023
As a recruiter, you know how important it is to keep track of recruiting analytics. But it can be hard to know which metrics to focus on and how to use this data to improve your hiring performance.
This article dives deeper into the key recruiting analytics you should be tracking, as well as some tips to ensure that you’re getting the most out of your recruiting data. We’ll look at metrics like the source of candidates, number of applicants, time to hire, cost per hire, quality of hire, retention, overall velocity of hires, and applicant-to-hire ratio.
At the end of this article, you’ll understand why these metrics matter and what they tell you about your talent acquisition process. Let’s get started learning more about key recruiting analytics!
Source of candidates: know where your applicants are coming from
Are you curious to know where your applicants are coming from? Tracking the source of candidates is key to understanding your hiring performance. Knowing where your applicants come from can help you refine your recruitment tactics, decide which sources will be most effective, and develop a strategy for acquiring the best talent.
For example, if you find that most of your applicants are coming from job boards like Indeed, Glassdoor, or LinkedIn, you can evaluate whether those sources generate enough quality candidates and decide if a larger budget should be devoted to those platforms. On the other hand, if referrals are proving to be an effective source, you may want to consider increasing efforts in building employee referral programs.
By taking into consideration the source of each candidate, you can take targeted steps to ensure that your company is getting the right people in their roles.
Number of applicants: track application volume and trends
Using analytics to track the number of applicants is a must for any successful recruitment process. This metric can help you measure your success in terms of candidate outreach and the overall appeal of your company. At a glance, you can review the total number of applications and determine whether a particular source is yielding more acceptable candidates than another.
In addition to tracking application volume, looking closely at trends can be beneficial in uncovering any patterns or correlations between sources. If you find that one source generates a higher number of applications, but fewer qualified candidates, you may want to focus on another source for future recruitment efforts. You might also want to consider ways to improve the quality of applicants from certain sources.
The data collected from tracking the number of applicants can help inform future recruiting strategies and even shed light on where improvement might be needed. Analyzing this metric regularly will give you valuable insight into how successful your recruiting efforts have been and where changes might need to be made for better results.
Time to hire: improve speed and efficiency of the hiring process
You should also be tracking how long it takes to hire a new employee. It’s essential to be able to assess the speed of your hiring process. Measuring the time from when a job is posted to when an offer is accepted will help you identify any bottlenecks and inefficiencies. If you spot an issue, you can take steps to streamline your recruitment process, so you can attract, assess, and hire qualified candidates faster.
To measure time to hire, consider using recruitment automation or applicant tracking system (ATS) software, like impress.ai, which can help track this data accurately and can also provide metrics like:
Number of applicants
Cost per hire
Quality of hire
Overall velocity of hires
Getting a better understanding of these key recruitment analytics will enable your team to optimize their hiring performance and attract top talent in no time.
Cost per hire: control and optimize recruiting spend
Understanding the cost per hire is key for any business trying to optimize its recruiting spend. This metric simply looks at the total cost of recruitment divided by the number of hires. This can include anything from advertising costs, agency fees, administrative costs (background checks, drug tests etc.) and even internal staff costs for time spent on interviewing and onboarding.
Tracking cost per hire allows you to monitor your recruiting budget and look for ways to reduce spend while still getting the best results. It also helps you to compare different candidate sources and decide where best to invest your resources, for example, it may be beneficial to focus on in-house activities like job boards or referrals rather than paying expensive agency fees.
You can take the cost per hire a step further and analyze the total cost of acquisition (TCA) which is all expenses involved in attracting, hiring, and onboarding new employees, including benefits. TCA calculation helps companies adjust their budgets accordingly, so they get the most out of their investments in recruitment activities as it’s an invaluable tool for any HR department that wants to ensure they are spending their money wisely!
Quality of hire: measure new hire performance and impact
Measuring the overall quality of hires you make is important to understand the impact that your recruiting strategy is having on your business. The quality of hire metric will help you track and measure the performance of each new hire, as well as their impact on your business.
One way to measure the quality of hire is to track job satisfaction, especially during onboarding and within the first 90 days after hire. Looking at employee engagement surveys and metrics like compensation, promotions, and key metrics within their respective roles will give you a better picture of how satisfied they are in their job.
Another way to measure the quality of hire is by getting feedback from managers and peers regularly. This could look like 360 reviews, surveys on how they interact with team members or customers, as well as measuring goal achievements and success benchmarks for each individual employee.
By measuring the performance, over time you will be able to get a better understanding of which recruitment channels are bringing in top talent enabling you to adjust your strategies accordingly.
Retention and overall hiring velocity: ensure new hires are the right fit
One of the most important metrics when evaluating your recruiting performance is retention and overall hiring velocity. With retention, you want to focus on looking at the percentage of new hires that stay with your company for more than a year. If you’re hiring the right people, then they should be staying with your company long-term.
To track overall hiring velocity, keep an eye on the time it takes to move through the hiring process from application to start date. A high number likely means something is off in either the quality of applicants or how quickly you are responding to them.
By tracking these two key metrics, you can ensure that your new hires are a good fit for your business and team culture. This will help you make sure that your recruitment strategy is working as it should and that you are getting quality candidates who will help drive business growth and success.
Having a deep understanding of recruiting analytics helps you understand where you are falling behind and where you can improve. It is essential to have a strategy in place to measure the progress of your recruitment efforts and track the right recruiting metrics.
These key recruiting analytics metrics are the most important to track, but there are likely other more specialized metrics that you might need to measure. The key is to constantly measure, analyze, and adjust your recruiting strategy to ensure you are building a strong hiring pipeline, reducing time to hire, and hiring quality candidates.
Ultimately, it is about understanding how your recruitment efforts are performing, allowing you to make well-informed decisions that will help you optimize your hiring process and improve your hiring performance.
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