“Qualified applicants per requisition” is a good indicator of the effectiveness of your sourcing channels. This takes into account not simply the total number of applicants for a position, but the number of quality or qualified applicants. One source may produce hundreds of applications, but maybe only ten of them actually made it beyond the screening questions or minimum requirements. The way that you determine what a qualified applicant means will vary based on the specific requirements that you establish for each requisition, but it is important to establish an average over all requisitions for a specific time period. Ultimately, qualified applicants are the ones that matter and the ones that you will want to keep in contact with for future opportunities.
Applicant SatisfactionWhile related to the employee retention rate, it is important to look at applicant satisfaction on its own to ensure that your recruiting efforts are placing applicants into positions where they feel they can grow and excel. The best way to measure this is simply to have a standardized new hire survey, and then use performance reviews as another chance for employees to express how satisfied or dissatisfied with their job. Surveys can include questions on the hiring process, onboarding, and overall job satisfaction. These metrics will help you determine how positive an applicant’s experience is from the moment a recruiter reaches out to them. This allows a company to take a step back and look at their processes from an outsider’s perspective, and shed some light on how they are portraying their organization to applicants versus what they experience when they are hired.
Companies with highly-developed talent management strategies know that they need to constantly be looking for quality candidates, even when there is no immediate opening in the organization.
This is when an automated Applicant Tracking System (ATS) becomes crucial. If you post a job opening for a project manager and receive hundreds of applications, there may be only a dozen that stand out as quality candidates. However, you can only hire one at that time. Down the road, though, the company may expand, opening up three new project manager positions. Rather than starting the process over again, you can start with the dozen that you had already screened-in for the last position, potentially cutting the time to fill that position by half!
If we think about recruiting as sales, candidates are like leads in a sales pipeline. It’s important to have a good mix of leads – existing leads from past requisitions that may be interested in a new job opening, net new leads from job boards that you may just be monitoring until the right time, and employee referrals.
Quality of hire may sound rather subjective and difficult to determine, but nevertheless is one of the most important metrics. Because the cost per hire and retention rate are constantly scrutinized, it is important to find quality hires that are going to stay with your company for a long time, thus diminishing the need for another costly hire down the road.
It will take some time to determine the quality of a new hire, but the longer the employee is at the company, the easier it will be to establish. This should take into account not only performance ratings, but also their potential. Over time, you will be able to see a trend in their performance reviews, and determine their overall worth to the organization. This metric can then be linked to the sourcing channels to help determine where the highest quality candidates originated from, as well as the time to hire so recruiters can get a sense of how long it takes to find the right candidate