With the dynamics of leadership changing drastically, businesses of the future need to set a definitive executive leadership hiring benchmark to evaluate the recruitment process.
With the dynamics of leadership changing drastically, businesses of the future need to set a definitive executive leadership hiring benchmark to evaluate the recruitment process.
With the average cost per hire being $4,425 and 36 to 42 days for onboarding, organizations and hiring managers are always under pressure to optimize costs and time taken for recruitment. The best way to do it is by setting a benchmark for the hiring process with well-defined parameters, and this blog will help you achieve just that.
Read along, as we explain the key hiring metrics and the ways to track them
Tracking key metrics for hiring analytics
Tracking key metrics for hiring analytics
Reference is the biggest source of recruitment for businesses to this day. As of 2021, over 82% of employers rated it the most successful among other sources for maximum ROI. The only question is – how to monitor the quality of your referral sources?
Firstly, you need to evaluate your key sources of referrals. Some of them are third-party recruitment services, job search websites, digital billboards, and even your current employees. Choosing the right reference source for your business helps in saving significant time and resources while acquiring the best talent available for a given job position.
To effectively measure the quality of referral sources, collect the data of successful hires in your organization from one referral source. You then have to evaluate how many of them were quality hires and good performers and grew quickly in the corporate hierarchy. This will give you the most efficient referral source for your organization.
Additionally, make sure to observe the latest trends and patterns in the source that gave you the right talent to further tune your hiring process for expected outcomes.
Turnover rate
Employee turnover rate is a measure of determining recruitment success by how often an organization replaces one employee with another. The reason for it can be resignation, retirement, termination, or internal transfer of employees.
An ideal employee turnover rate ranges from 10% to 20% depending on the industry. Anything above 40% is a matter of serious concern, as it indicates significant employee dissatisfaction.
To find your organization’s employee turnover rate, divide the total number of employees that left the organization by the average number of employees in a given period. Multiply the final result with 100 to get your employee turnover rate percentage.
Application completion
Once a candidate replies to the job offer, the first step towards getting him/her onboard is gathering basic information through online applications. These application forms are the first introduction of the candidate with basic information like name, age, education, professional expertise, work experience, etc.
The key challenge in getting quality information from employee applications is getting them to fill it thoroughly and as quickly as possible. Your job application form should be concise and easy to fill for a candidate.
With that said, here are a few reasons a candidate might abandon the application completion at any stage:
- The application form is too long
- The application form isn’t compatible or optimized for smartphones
- The application form isn’t compatible or optimized for smartphones
- The application is full of technical errors
Your entire recruitment process depends on the application completion as it’s the very first formal interaction between an organization and potential hire. You can track how many candidates abandon application forms using online tools like Google Analytics.
Offer acceptance
All your efforts toward finding an ideal candidate culminate at offer acceptance. It’s the final step of the hiring process and also the most crucial step for organizations to onboard the best candidate before its competitors.
The offer acceptance rate is the comparison between the number of employees getting on board and the number of candidates receiving the offer. It’s a straightforward metric of hiring analytics that gives a clear indication of your hiring efficiency.
To measure your offer acceptance rate, divide the number of candidates accepting the job offer with the number of candidates that receive the job offer. If your offer acceptance rate is lower than expected, you need to make some changes in your job offerings, like making your job profile more attractive with added compensation and benefits, providing new learning opportunities, etc.
Quality of hired candidates
Last, but certainly not least, the most crucial hiring metric for organizations is the quality of hired candidates. Simply put, it’s the answer to the question, “Is your organization hiring the right people for the right role?”
Although there are no one-size-fits-all metrics to measure the quality of hire, organizations can set their own benchmarks depending on the following factors:
- Number of employees growing in the corporate hierarchy
- Number of years working in the organization
- Quality of work done and targets achieved
- Strong communication among co-workers and strong work ethics
- Seamless transition of an employee in your organization’s culture
Most organizations nowadays use a 360-degree approach to assess the quality of hires based on parameters set by the senior leadership in line with business goals.
Final thoughts
Measuring hiring success gives organizations more control over the effectiveness of their recruitment campaigns by hiring an ideal candidate for any job position. These hiring metrics help hiring managers fine-tune their processes to get the best outcomes from their hiring efforts.
VBeyond Corporation helps you further simplify the recruitment process by finding talent with the right skill and culture fit for your organization.
