When it comes to hiring top talent, creating an efficient early-career recruiting process helps your hiring team run circles around your competition. Why? Because qualified candidates want to work for an organized organization, for starters.
What lets companies know if their early-career recruiting process is efficient and effective? Recruitment metrics. Here are four recruitment metrics that your hiring team can start tracking immediately:
Calculating your company’s cost-per-hire (CPH) is a surefire way to make sure you’re off to a good start. And it’s not hard to do. In fact, Glassdoor provides a simple formula for companies:
Cost-Per-Hire= (External Costs + Internal Costs)/Total Number of Hires in a Time Period
Once you figure out your CPH, you can compare it to the national average—NACE pegs it at $6,275 per employee (with personnel costs included). Also, you can reevaluate your recruiting practices, because adding up all the costs, you’re bound to see certain places where you’re spending a lot of money—cough cough, on-campus recruiting, cough cough—that aren’t necessarily delivering ROI.
Figuring out your company’s time-to-hire is more straightforward. You start measuring once you post the job. After that, you’ll want to note the following, according to LinkedIn:
- When you made the offer
- When the candidate accepts the offer
- When the employer starts the job
If you pay attention to all three, you can start to see where the breakdown happens. If your candidates are dropping out of the hiring process, then it’s indicative of your team’s time-to-hire being too long.
3. Quality Of Hire
Understanding quality of hire will help your hiring team determine where the baton’s being dropped. Is your hiring process inefficient, causing your team to lose out on top talent and hire unqualified candidates to fill open positions? Or maybe the majority of your applicants that come from one (or multiple) source(s) are leading to less-than-stellar employees. Either way, measuring quality of hire can fix this.
In order to calculate quality of hire, you must choose what criteria is used to determine the quality. What does a successful employer do that an unsuccessful doesn’t? How long does it take for employees to contribute to the company? Are they engaged with their position and the company? What do they contribute to your company culture?
Here’s a formula you can use to measure quality of hire:
Quality of Hire = (Job Performance score + Ramp-up Time score + Engagement score + Cultural Add score)/ Total Number of Criteria
Analyzing quality of hire helps your hiring team be more efficient in terms of the types of candidates you need to recruit. Because good employees start off as good candidates.
4. Conversion Rate
Is your company’s internship program creating a strong pipeline of future hires? Monitoring your conversion rate will give you the answer. The average conversion rate for turning interns into to full-time hires is 46 percent, so if it’s less than that, your company’s not maximizing its potential return on investment for its early-career programs. Why? Because it’s helping top talent reach their potential…for other companies.
Calculating your conversion rate is easy:
Conversion Rate = (Accepted Offers/Number of Interns) * 100
Focusing on these four recruitment metrics will help your hiring team learn how it can speed up and optimize your early-career recruiting, so your candidates feel like it’s a sprint.