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Recruiting Metrics 101: Why, What, and How
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Recruiting Metrics 101: Why, What, and How
Why
It may take bit of a leap to embrace metrics but once you do, the benefits are almost immediate. And measuring, just measuring, improves performance. And if that isn’t motivation enough you should note that senior executives tell us that the inability to document HR and human capital performance is the number one reason for terminating HR professionals.
What
All metrics are numbers, but not all numbers are metrics. Real metrics measure outcomes associated with customer driven objectives. They are not an end in themselves, but in the end must be calculated as metrics are the ultimate arbitrator, the final judge of performance.
Hiring managers have identified the most important recruiting metrics as new hire quality, time, hiring manager satisfaction, and recruiting efficiency.
How
Quality is Metric 1
New hire quality and when to measure it should be defined before recruiting is initiated. This simple process of noting what the hiring manager considers to be quality performance after the new hire is acclimated automatically improves recruiting performance. Quality for a mail clerk, for example, may be 99% accuracy and processing all mail within two hours after six weeks on the job. A global logistic director could also be evaluated on accuracy and time as well as value but probably after at least six months in the position.
Time, the Metric that Makes Recruiters Great
Just in time manufacturing doesn’t mean that new materials or components magically arrive at the factory when a manager runs out of them. It means that the manager and the suppler have jointly planned and contracted for them to arrive on a specific date. The recruiting time metric is the ratio of the contracted days to start compared to the actual days to start. The contracted time is the number of days the hiring manager and the recruiter jointly target as the start date.
More Than Satisfy Hiring Managers
Instead of the traditional post hire critique, use a template to both define hiring manager satisfaction before initiating recruiting as well as to evaluate recruiter performance after the position has been filled. This is not only a fairer process but one that also fosters a better working relationship with hiring managers.
Recruiting Efficiency, a Metric That CFO’s Like
Efficiency, the ratio of costs to productivity is the best financial measure of any activity. To calculate your Recruiting Efficiency, follow these steps:
1. Add up your recruiting costs for the period being measured.
2. Determine your Total Compensation Recruited for the same period by either adding up the base starting compensation for all new external hires or multiplying the average base starting compensation by the number of hires. This, not the number of hires, is your staffing productivity.
3. Calculate your Recruiting Cost Ratio. Divide the Recruiting Costs (1) by the Total Compensation Recruited (2). The result is your RCR.
4. Subtract your RCR from one – the result is your Recruiting Efficiency
1 – RCR = Recruiting Efficiency
Start with one or two recruiting metrics and phase the others in over three to six months. It’s sure to enhance your performance and your career.
It may take bit of a leap to embrace metrics but once you do, the benefits are almost immediate. And measuring, just measuring, improves performance. And if that isn’t motivation enough you should note that senior executives tell us that the inability to document HR and human capital performance is the number one reason for terminating HR professionals.
What
All metrics are numbers, but not all numbers are metrics. Real metrics measure outcomes associated with customer driven objectives. They are not an end in themselves, but in the end must be calculated as metrics are the ultimate arbitrator, the final judge of performance.
Hiring managers have identified the most important recruiting metrics as new hire quality, time, hiring manager satisfaction, and recruiting efficiency.
How
Quality is Metric 1
New hire quality and when to measure it should be defined before recruiting is initiated. This simple process of noting what the hiring manager considers to be quality performance after the new hire is acclimated automatically improves recruiting performance. Quality for a mail clerk, for example, may be 99% accuracy and processing all mail within two hours after six weeks on the job. A global logistic director could also be evaluated on accuracy and time as well as value but probably after at least six months in the position.
Time, the Metric that Makes Recruiters Great
Just in time manufacturing doesn’t mean that new materials or components magically arrive at the factory when a manager runs out of them. It means that the manager and the suppler have jointly planned and contracted for them to arrive on a specific date. The recruiting time metric is the ratio of the contracted days to start compared to the actual days to start. The contracted time is the number of days the hiring manager and the recruiter jointly target as the start date.
More Than Satisfy Hiring Managers
Instead of the traditional post hire critique, use a template to both define hiring manager satisfaction before initiating recruiting as well as to evaluate recruiter performance after the position has been filled. This is not only a fairer process but one that also fosters a better working relationship with hiring managers.
Recruiting Efficiency, a Metric That CFO’s Like
Efficiency, the ratio of costs to productivity is the best financial measure of any activity. To calculate your Recruiting Efficiency, follow these steps:
1. Add up your recruiting costs for the period being measured.
2. Determine your Total Compensation Recruited for the same period by either adding up the base starting compensation for all new external hires or multiplying the average base starting compensation by the number of hires. This, not the number of hires, is your staffing productivity.
3. Calculate your Recruiting Cost Ratio. Divide the Recruiting Costs (1) by the Total Compensation Recruited (2). The result is your RCR.
4. Subtract your RCR from one – the result is your Recruiting Efficiency
1 – RCR = Recruiting Efficiency
Start with one or two recruiting metrics and phase the others in over three to six months. It’s sure to enhance your performance and your career.
