Recruitment Matrix
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This document provides information on key performance indicators (KPIs) for recruitment. It discusses important metrics to track such as quality of hire, turnover and retention, hiring manager satisfaction, cost per hire, time to fill, time to hire, source of hire, and offer acceptance rate. Calculating and analyzing these metrics can help improve the efficiency and effectiveness of an organization's recruitment and hiring processes.
Recruitment Matrix
- 1. RECRUITMENT MATRIX Published by - Arunesh Chand Mankotia Quotes-http://ownquotes.com/profile/aruneshchandmankotia/ MyBlogs- http://aruneshchandmankotia.wordpress.com Slides- https://www.slideshare.net/aarunesh/edit_my_uploads Linked in http://in.linkedin.com/in/aruneshchandmankotia
- 2. KPI In Recruitment KPI stands for Key Performance Indicator and it can be used in any field or business function to measure performance. In recruitment, key recruiting metrics refer to the important factors related to the hiring process that you should consistently examine. For example, the speed with which hiring teams make a decision may be a KPI for a company that values quick turnaround and does mass hiring.
- 3. Learning from Recruitment Metrics Quality, cost and productivity of your hiring process. Key Learning's – How good are we at spotting the right candidate and how long does it take us to hire them? How many qualified candidates do we need to make a hire and how quickly do we move them from one stage to the other? Do we effectively engage the best candidates and getting them to accept our job offers? How much money do we spend per hire and how does our spending change depending on the role we’re hiring for? How efficient is our hiring process and which steps or stages are most productive?
- 4. Important Hiring Metrics to Track Quality of hire - Quality of hire (QoH) measures the value new hires bring to a company. Performance metrics include any kind of measurements that indicate a new hire adds value, like meeting X sales quota, delivering Y number of product units or achieving Z customer satisfaction ratings. Turnover and retention metrics - They give an indication of whether new hires are good fits. They’re risky metrics though, because attrition might have other causes like an ineffective on boarding process or ineffective management practices. Hiring manager satisfaction ratings - They show how impressed hiring managers are with the quality of their company’s hiring process and their eventual hires.
- 5. PR: Average job performance of new hires (e.g. 80 out of 100 based on quantifiable targets or hiring managers’ feedback) HP: percentage of new hires reaching acceptable productivity within a determined period HR: retention rate after a year N: number of indicators (in this case, N=3) Calculations QoH index = (PR + HP + HR)/3 QoH index = (70 + 80 + 90)/3 QoH index = 80 .
- 6. Cost-per-hire (CPH) is one of the most intriguing recruiting metrics – Internal costs - Internal costs refer to “internal staff, capital and organizational costs of the recruitment function.” In-house talent acquisition team salaries Salary costs of time spent by hiring managers Learning & development costs for your recruiting team External costs - External agency fees, Job board posting, Aptitude test, Assessments/Background check, Employer branding activities, career fairs. Total number of hires - Total number of hires might be measured differently across companies. But, generally, companies could include all internal or external hires, both full-time and part-time, Went through a hiring process lead by a hiring manager Were on payroll as temporary staff and promoted into a full-time position Have fixed term contracts of more than a year and are on the company’s payroll
- 7. Recruiting yield ratios - “Yield ratios show what percentage of candidates pass from one stage of the hiring process to another.”
- 8. What is time to fill? Time to fill is the amount of time you need to fill a position. This metric helps you plan your hiring better and also serves as a warning when your hiring process takes too long. How do you calculate time to fill? Time to fill represents the calendar days until your company fills a position. To count those days, first define the time. A hiring manager submits a job opening for approval. HR or Finance approves a job opening. A recruiter advertises a job opening. The end of your time to fill is usually the day a candidate accepts your job offer. How do you calculate average time to fill? company’s average time to fill by adding all time to fill measurements for each position you filled in a given period (e.g. a year) and then divide by the number of roles.
- 9. if you hired for three roles, with 20, 30 and 40 days time to fill respectively, then your average time to fill is 20+30+40/3 = 30 days. This calculation should refer to the same time period. Benchmark - The Society of Human Resource Management (SHRM) reports an average time to fill of 42 days. Workable also found benchmarks on time to fill per industry. For example, the average global time to fill in Engineering is 62 days. How can we reduce time to fill? Build a candidate database. You don’t have to look for candidates from scratch every time a position opens. Your ATS already has many qualified candidates who may have made it to the final stages of a hiring process, or applied after a position was filled. Source actively. Reach out to passive candidates and connect with them. Even if you don’t have an immediate opening, lay the foundation for a strong relationship so you can contact them in the future. Scrutinize your time to fill. Your time to fill has many layers: time to interview, time from application to phone screen and more. Find which stage takes too long and think about how you can improve it. Create an effective referral program. Offer incentives for referring candidates and send reminders of job openings to your colleagues.
- 10. Time To Hire, Time to hire measures the time between the moment your eventual hire entered your pipeline (through sourcing or application) and the moment they accepted your job offer. This metric indicates how fast you spotted your best candidate and moved them across the job’s pipeline. To calculate time to hire, imagine that the day you opened a specific position is Day 1. Then, if your best candidate accepted your job offer on Day 25, and they applied on Day 10, your time to hire is 25-10 = 15. What’s a good benchmark for time to hire, The moment the best candidate applies, your hiring team should be ready to identify them. Considering that the most talented people are off the market in 10 days, it’s best to aim for the shortest time to hire possible.
- 11. Improve your time to hire – Break down your hiring process. Measure how much time it took to move candidates from one stage to another. That way, you can discover whether your hiring team spends too much time on a particular phase. Calculate time to hire per team. If there’s one particular team that inflated your average time to hire, talk to the hiring manager to discover the cause. Train hiring teams. Both recruiters and hiring managers benefit from interview training, which can help them spot the best candidates for a role more quickly. Use templates. Communicate with candidates by crafting effective emails through customizing templates. This can shorten the time you spend on scheduling and answering questions and will also reduce your time to fill.
- 12. Source of hire - Source of hire (SOH) shows what percentage of your overall hires entered your pipeline from each recruiting channel or source - job boards, referrals, direct sourcing. Use surveys, Maximize your Applicant Tracking System (ATS.), Examine web analytics, Data Management.
- 13. Offer acceptance rate - Offer acceptance rate (OAR) shows what percentage of candidates accepted your job offer. Here’s the formula to calculate OAR. Offer acceptance rate helps you determine the overall success of your recruitment process. If your OAR is 90%, there’s good cause to believe your process works well. If your OAR drops to 30%, your hiring process is in trouble. An OAR between 30% and 90% is harder to interpret.