Good data is the key to driving any good business decision, and the area of talent management is no exception. But with so much information to analyze, how do you know what it is you really need to know?
Seven metrics that matter
When it comes to recruiting, here are the seven metrics that should matter to HR professionals.
1. Time to hire
Once you post your job opening, how long does it take before your new hire actually starts? The standard varies depending on industry and job title, but generally speaking, companies with shorter times to hire have better talent management processes than organizations that need more time to get an employee in the door.
2. Sourcing channel
Where do your candidates come from? Ideally you have multiple sources, including job boards, social media such as LinkedIn, and internal referrals. If you aren’t tracking which channels are generating the best candidates, you could be wasting time and energy on posts and searches in the wrong places.
Be sure to note:
* How many applications come from each source
* How many qualified applications come from each source
* Where the candidate you hire first heard about the position
3. Cost of hire
Don’t forget to consider all the costs involved in a new hire. Include each of these factors when adding up the expense:
* Advertisements or board postings
* Time spent administering social media accounts for recruiting purposes
* Time spent reviewing applications and interviewing candidates
* Recruiter fees
* Accounting and administrative costs tied to setting up a new employee
Poor retention can cost you tens—if not hundreds—of thousands of dollars each year. If that sounds high, consider not only the direct expenses but also the lost productivity from the open position, as well as the time and money spent on recruiting, hiring, onboarding and training.
Every three to six months, review turnover rates for specific positions and compare them to the turnover rates of specific departments. You also can analyze turnover rate by pay grade. Look for trends and try to spot problem areas for which you need to find solutions as soon as possible.
5. Open vacancies vs. positions filled
In larger organizations, it’s important to compare the number of openings to the number of vacancies that recently have been filled.
This can be tracked monthly or quarterly and should be considered alongside the time-to-fill statistics. If you’re managing talent acquisition successfully, you will have a low amount of openings compared to positions filled.
6. Offer-to-acceptance ratio
If you’re making offers but not hearing “yes,” you’re losing time and money and possibly damaging morale. For each search process, track the number of offers you extend before making a hire. This measure can be analyzed in tandem with your cost-of-hire numbers, and a hiring software can help.
7. Gender mix
This metric is about more than just numbers of men vs. numbers of women. It’s important to parse how your gender mix breaks down across your team at three levels: front line, middle management and senior leadership. Periodically assess the mix within various teams throughout your organization and within the company as a whole.
How to implement these metrics
First, set a regular interval for measurement and analysis, such as quarterly or semi-annually. Make this process known so your hiring managers are consistently gathering and recording the information you need throughout the measurement period.
Use an online reporting tool to gather the information from your multiple sources and populate dashboards that display your critical data points.
Once you’ve analyzed the information, be sure to share it with your hiring managers and mid-level leaders. They need to be able to compare how their department stacks up relative to other teams across the organization.
Paycor’s Custom Reporting tool is a flexible, intuitive resource for collecting and collating data for hiring metrics and countless other information specific to your organization. And Paycor’s Applicant Tracking solution can become your recruiting command center, ensuring that you get the right people for all your openings in a timely, efficient way.
To learn more, contact a Paycor
Source: Recruit Loop
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