One of the biggest drawbacks of recruiting without the right tools is that when all’s hired and done, there’s no record to learn from. It has been a disposable experience. To extract full value from any recruitment process the steps taken need to remain visible and repeatable.
Anyone who has undertaken hiring on any scale will have come across promising candidates who, while they weren’t the right choice at this stage or for this role, are worth noting for the future. It’s too easy to lose track of them with email and spreadsheets.
Every hire is an opportunity to broaden your network, build new relationships and talent spot for the future. Recruiting professionals refer to this as creating a “talent pool”. Recruiting software, like Workable, gives you a permanent record of every hire and a head start on filling that talent pool.
It also unlocks the chance to learn and improve from the process itself using reports and analytics. When there is a record of where candidates come from (which job boards, social media or referral routes), how long it took your eventual hire to move from applied to promising, to interview and offer, it’s possible to unlock valuable lessons.
When there is more than one open position, recruitment analytics become essential because they offer a high level view of your whole hiring effort. And with it answers to these questions:
1Where are your hiring bottlenecks?
2Which hiring managers need help?
3Which positions need urgent attention?
4Which are your best sources for hires?
Too much of recruiting analytics has been about calculating the cost per hire. Cost per hire is calculated by adding up all of your recruitment costs from ads to external recruiters, referral bonuses, plus your own hiring team’s compensation and benefits costs, and dividing it by the total number of new hires for the calendar year.
As well as being tough to meaningfully calculate, for smart companies it may be the wrong place to look. The point is not to hire more cheaply, it’s to get better results from hiring. With this in mind here are a trio of hiring metrics worth considering:
1Time to start: Duration from ad to on-boarding
2Effectiveness ratio: How many openings you have versus how many you’re filling.
3Sourcing. Measuring not just the what but the why of your best talent pools
A lot of talk in the talent industry focuses on Quality of Hire. But this is a super metric that assumes you’re already got performance metrics, measurable core competencies, retention records and a host of others. Not having these is not a good reason to ignore recruiting metrics but it does mean the Quality of Hire looks more like the finish line than the start.
I’ve seen recruiting organizations spend all their time in the metrics-gathering phase, and never get around to acting on the results — in industry parlance, “boiling the ocean.” You’re far better off gathering a limited number of metrics that you actually analyze and then act upon.Tweet