Tracking Hiring Milestones and Recruiting KPIs – Part 1

Tracking Hiring Milestones and Recruiting KPIs – Part 1

Knowing what to measure and when to measure it helps define your HR team as a crucial addition to the company’s success.  Gone are the days of simply posting job opportunities on your company website, and hoping for the best. Building a strategy, being smarter about where you are finding candidates, and knowing how effective your recruiters are will determine the future of your organization’s talent. When it comes to recruiting, there are dozens of metrics that you could report on, but we have picked out just the top five most commonly used to focus on in Part 1 of this post, with another five coming in Part 2.

 

1 – Time to Start

 

Time to Start refers to the amount of time it takes to bring a new hire on board from the moment that you first publicize the open position.

 

It is important to distinguish that this means the time until a new hire’s first day on the job, not the day they accept the offer. This is probably the most important recruiting metric to focus on as it relies on the efficiency of the recruiters and the sourcing channels used, but also determines the success of your overall recruiting strategy. Job vacancies within an organization can mean a loss of productivity until that position is filled, so the longer the time to hire, the longer your organization is lacking in that area.

 

Of course, the time to fill is going to vary based on the job level and perhaps the skill set that is required. As time goes on, however, HR should be able to determine an average time frame across all positions and work towards reducing that time.

 

2 – Retention Rate

 

Employee retention is an important metric for many reasons. Not only does it show how successful your recruiting efforts are in finding qualified candidates, but is also a great indicator of the overall health of an organization. For now, we will focus on what the retention rate can tell us about recruiting efforts.

 

If your organization has a hard time retaining people for longer than a year after their hire date, you may be hiring the wrong type of candidate. Once you have determined the cost per hire for each position, it’s no wonder that the retention rate is such an important metric. Your company could be bleeding money with this unnecessary turnover. The cost of replacing an employee can be upwards of two times their salary! (Article from the Center for American Progress)

 

So, as with any problem, the first step is to identify whether or not your organization has a reasonable retention rate based on your industry’s standards as this can vary widely by industry.

 

Then, rather than trying to look at retention rates for all positions across all levels of the organization, it will be more insightful to analyze by sections. For example, you can look at the turnover rate for a specific role. If one role is causing turnover every year, maybe you need to take a look at the responsibilities of that role. Are there unrealistic expectations or unattainable goals? Another way to look at the data is turnover by pay grade or even by department. In this way, you can determine if the retention problem is company-wide, if it’s in a certain department because of a bad manager, etc.

 

Ultimately, measuring the retention rate will allow you to pinpoint whether or not the issue is a recruiting one. To quote an article from Forbes, “The best recruitment strategy is a solid retention strategy and this has to start at the top.”

 

3 – Applicant Satisfaction

 

While 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 they are with their job. Surveys can include questions on the hiring process, on-boarding, 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.

 

In today’s social world, this firsthand experience and testimonial is as important to a company’s reputation and messaging as any other marketing effort. The real goal is highlighting where a change needs to occur internally.

 

Is there an opportunity for more training for not just the interview process, but the competencies of employees? Is there a reason for employee dissatisfaction with the company that can be fixed to help retain top talent? It may be as simple as the job descriptions need to be revised. But it may be the job, the role, or the company direction that may need to be refocused, clarified or redirected. These are just some of the insights that can be gained by using applicant satisfaction company’s self-reflection.

 

 

4 – Sourcing Channel

Sourcing channel or source of hire simply refers to the efficacy of the different job boards or media a company uses to publicize its current job openings. The reason for tracking this metric is simple – there are hundreds of options for sourcing candidates, but depending on your industry or your specific organization, certain sources will prove to be more effective or provide higher quality candidates than others.

 

Talk about sourcing channels comes up often when thinking about Big Data – gathering the information above, you are able to combine this data to see the big picture and support your sourcing choices. As noted by David Bernstein on HR.com, “Big Data analysis also enables the employer to measure the effectiveness of their recruitment campaigns in real time and make necessary adjustments—sooner rather than later—to improve performance.” Not only do we need to take a look at what we’ve done in the past that worked, but what are we doing now that isn’t working? And how might we shift our resources towards more effective sources?

 

5 – Quality of Hire

 

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.

 

The formula for Quality of Hire should be comprised of recruitment-focused quality measures and post-hire contribution / performance quality. The factors that contribute the data for each side of this metric can differ from one organization to the next. Deltek’s Quality of Hire report plots recruitment efficacy and directly correlates this to post-hire performance appraisal scores.

 

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.

Because of its organizational impact, quality of hire is a more important metric to track than time to fill or cost per hire.

 

For more recruiting KPIs, keep an eye out for Part 2 of this blog post coming soon!

 

You may also find our Top 10 Recruiting Metrics Cheat Sheet to be helpful in your efforts to streamline your recruiting plans in 2017. 

  

Should I Use an Agency to Find Candidates?

Should I Use an Agency to Find Candidates?

For some companies and for some types of jobs, it is not uncommon that as soon as a job is posted online, applications come flooding in.  But what about the times when that isn’t the case?  Or when you need a highly specialized hire that may not be looking for a job at this time?  This is a perfect opportunity to take a look at other options, and one great resource to pursue is working with external recruiters or recruiting agencies.

LinkedIn has a great list of how staffing firms can help you excel and some of the advantages of working with them.  Some of the biggest reasons that companies start working with recruitment agencies include:

  • When the types of applicants they want are in high-demand and probably already in a job (and possibly not looking at this time).
  • When they have a hard to fill job that is not getting enough qualified applicants through their normal channels.
  • When they have already looked on job boards and not located resumes that fit their requirements.
  • When their company has grown significantly and the current team is overwhelmed with the number of job openings and the time required to fill them.

When you make the move to work with recruiting agencies, there are some considerations you will need to keep in mind in regards to the terms of your agreement as well as the responsibilities and expectations of the external recruiter.

  • What payments terms does the recruiting agency have?  In most cases, this will be based on the hires annual salary and paid after the employee is on the job for a certain number of days.  For example, you might end up paying out 20% of the employee’s annual salary to the recruiter after the new hire has been with the company 90 days.
  • What is the recruiter’s warranty period?  Many will offer you a timeframe during which, if the hire doesn’t work out of leaves, they will find you a replacement hire at no cost.
  • What additional services will the vendor complete for you?  Make sure that you work with an agency who, at a minimum, will pre-screen and meet every candidate that they send your way and that they will verify the qualifications before sending to you.  Also, depending on the recruiter’s field and specialty, some may offer additional services such as skills testing, background checking, drug screening, etc.

Keep in mind that these things can be negotiated – especially if you are making multiple hires through the same agency.  Make sure you discuss and come to agreement on the terms and price.  Also, make sure you shop around and thoroughly review each recruiting agency you use.  You may end up sending out to multiple agencies, but sometimes you can get competitive pricing if you work exclusively with a single vendor.

Additionally, there are some terms and scenarios you might want to review with a recruiting agency that may or may not be a part of their original agreement.

  • Do they offer a lock-out period?  This would be a time during which the recruiter cannot place your candidate in another position at a different company, necessitating you filling the position again.
  • At what point do you have to pay for the resume?  For example, what if the recruiter sends you a resume for someone that already applied through your website?  Or what if the same resume is submitted by multiple recruiters?  Make sure this is clearly defined and easy to document.
  • What happens if the recruiter sends unqualified candidates?  This doesn’t seem to be the norm, but it can happen, so make sure you have open lines of communication to address this situation quickly.

With all of this in mind, our last piece of advice is to make sure that everything about the relationship and the resumes you receive and hire is well documented.  Take steps to ensure you are able to find and report on the information about the resumes that have been sent your way.  Utilizing tools such as applicant tracking solutions and vendor management systems can help ease some of the burden of tracking this manually.  Also, having this as a part of your ATS makes it easier to track the resumes sent from recruiting agencies and house them in the same place as external or internal candidates which will help ensure consistency in your own hiring practices.

How to Cater to Different Types of Hires for the Best Results

How to Cater to Different Types of Hires for the Best Results

firefighter in uniform holding a hose standing in front of fire engine

 

Posting jobs and hiring new employees can be a huge time investment, making it a big disappointment when your favorite candidate doesn’t accept the offer or leaves after being on the job for only a short time period. There can be many underlying reasons for this shock to the system, and one thing that it helps to keep in mind is that your hiring processes cannot always be a “one size fits all” tool. Your candidates may come from many different sources and backgrounds, and how you interact with them during the hiring process can influence their decisions to join or stay at your company long-term.

This blog series will focus on several different groups of candidates and considerations for working with those groups. For example:

  • How can you attract external candidates to apply to your openings?

  • How might you adjust the hiring process to meet the unique needs of candidates referred by your current employees?

  • Are there any special ways to keep in touch and market new job opportunities to respected alumni?

  • How can you get and keep the attention of the millennial workforce?

  • How can you make applying to jobs fast and easy for hourly workers?

Over the next couple of months, join us as we provide some best practices when accounting for the diverse needs of today’s workforce. Our focus will be on the candidate sources below, and we would be happy to receive further suggestions from our readers on additional groups you might like us to focus on.

  • Current employees

  • External candidates

  • Alumni

  • Contractors

  • Agency candidates

  • Interns

  • Social network contacts

  • Family members

  • Remote employees

  • Employee referrals

  • Millennials

  • Hourly workers

  

Acquisition 14.0 Release

Acquisition 14.0 Release

 

The new Acquisition Module is more robust than ever! Here are some of the highlights you should know:

  • Create Requisition (job profile or template, dynamic form, approvers, screening questionnaires, and attachments)

  • Manage Requisitions

    • Personalize page, bulk actions, crossposting, and social media sharing

  • Career Center 

  • Manage Candidates

    • Personalize page, hire eligibility, and bulk actions

  • Resume Dashboard

    • Resume, route resume with feedback, invite to apply, pool, workbench steps and tasks, and offers

  • Onboarding 

  • Resume Search

  • Resume Submission

    • Branding, mobile, search, job details, resume parsing, screening questionnaire, diversity, and bulk upload

  • And more!