The road to a more efficient hiring process begins by understanding that your hiring team may need to adjust how it thinks about recruitment metrics. So we’re here to help you address the issue.
Fortunately, utilizing the right recruitment metrics will lead to a more efficient hiring process.
It All Starts With Cost-Per-Hire
If your recruitment metrics don’t start (or include) cost-per-hire, then you’re already starting off on the wrong foot. Because measuring cost-per-hire is crucial to understanding what is—and isn’t—working for your early-career recruiting needs.
So how do you calculate that stat? Consider the following:
- How much money is being spent on external
- These include elements such as job sourcing, background checks, drug testing, marketing, and more.
- How much money is being spent on internal
- Examine how much it costs for your applicant-tracking system, travel, referral rewards, and other aspects of early-career recruitment.
Once you add up all these expenses, your hiring team can figure out how much it takes to add new team members.
Keep in mind, strong employer branding can help companies cut their cost-per-hire by 50 percent, according to the Society of Human Resource Management. When you consider the average cost-per-hire with personnel costs included is $6,275 per employee, you can save a nice chunk of change by having an efficient hiring process.
A Long Time-To-Hire Is Costly
On average, the time it takes to hire a new employee is 24 days. That’s more than three weeks, and if your recruiters are going on campus to hire, it can take up to three times as long!
So, an efficient hiring process can make your time-to-hire go from a metric you want to ignore to one that you brag about. One way to achieve this is to consider only having one or two people perform on-site candidate interviews. It makes your team focus only on qualified candidates, so interviewers’ productivity isn’t lost.
This way, your hiring team won’t be afraid of losing out on qualified candidates.
Acceptance Rate Is Important, But It Doesn’t Always Tell The Whole Story
Measuring your team’s acceptance rate is important, but it’s necessary to have a nuanced understanding of this metric. While a high acceptance rate may indicate an efficient hiring process, it can also be the product of a strong employer—and often consumer—brand. For instance, companies such as Google and Amazon, two of the most powerful organizations in the world, will more likely have a higher acceptance rate than others, regardless of the efficacy of their hiring process.
Having said that, it’s still important to know where your hiring team stands. In 2018, the average employer acceptance rate was 68.2 percent, a decrease from 71.8 percent from the year before, claims NACE. Anything around that is considered strong.
A low acceptance rate may indicate a weak employer brand or inefficient hiring process. Yes, top talent will more than likely have multiple job offers to consider, but if they’re saying no to yours, then there’s a good chance that your company culture wasn’t clearly explained throughout the hiring process, or it took too long for your team to make a job offer.
Strong Early-Career Recruiting Creates A Strong Conversion Rate
Are you monitoring how often your interns are turning into full-time hires? If not, you should because it’s an important indicator of efficient early-career recruiting. Because a recruit-once, hire-twice strategy is a cost-effective—and efficient—way to handle early-career recruiting needs.
If your hiring team hasn’t been monitoring this metric, you should start now. The average conversion rate from intern to full-time hire is 46 percent. So use that as your baseline, and look to improve on it.
Also, a strong conversion rate allows you to spend more time with qualified candidates. Because you’ll be able to see the qualities needed for successful early-career employees, you can easily focus on applicants with these traits.