15 Recruiting KPIs & Metrics to Increase Recruitment Efficiency in 2024

Summary: Analyzing the recruitment metrics is essential to find the necessary improvements to improve recruitment strategy and hire top talent. What are the most important recruitment metrics you can consider for optimizing the recruitment strategy? Find the article below!

Recruitment metrics help in properly evaluating the entire hiring process and finding necessary ways to constantly improve the outcome.

Analyzing these metrics would help businesses create and implement data-driven talent acquisition and retention strategies. Let’s learn about different recruitment metrics and how you can leverage them to strengthen the workforce.

What Is Recruitment Analytics?

Recruitment analysis is all about using data and number-crunching to improve how companies find, choose, and hire new employees. It helps HR leaders and recruiters understand how well their recruitment process is functioning now, and what it could deliver in the future. This means they can figure out important things like:

• Which places or methods work best for finding suitable candidates?
• How much money does it cost to fill a job opening?
• How many people apply for each job opening?
• How long does it take to fill a specific position?

To get all these answers, HRs rely on recruitment analytics that takes into account information like where candidates come from or what they say about your hiring process. Through this data, recruiters can make smarter decisions and improve their overall recruitment process.

What Are Recruitment KPIs?

Recruitment KPIs, or Key Performance Indicators, are the metrics that organizations use to measure and track the success of their recruitment processes. These indicators serve as a guide for recruiters to assess their performance and make informed decisions about sourcing, hiring, and managing talent.

Recruiting KPIs vary from company to company based on their specific goals and objectives in relation to recruitment. For example, Company A may prioritize time-to-hire as a key recruitment KPI because they might want to quickly fill vacant positions and minimize productivity losses.

On the other hand, Company B might focus on the quality of hire as their main KPI, aiming to attract top talent that aligns with their long-term growth plans.

What are Recruiting Metrics?

Recruitment metrics can be defined as the parameters used to track, analyze, and improve hiring procedures. When evaluating the processes against these parameters properly, an organization can learn whether they are hiring the right personnel. Properly understanding and analyzing these metrics would help in constantly optimizing the recruitment process.

Recruiting KPIs vs. Metrics

When it comes to measuring the success of recruitment efforts, there are two key terms that often come up: recruiting KPIs and metrics. While both are important for understanding and evaluating the effectiveness of recruiting strategies, they have some differences.

Recruiting KPIs are the parameters to measure the performance and effectiveness of your hiring process. These KPIs for recruiters are quantifiable and demonstrate how well they are meeting their targets. Examples of recruiting KPIs include time to fill a position, cost per hire, quality of hire, and candidate satisfaction.

On the other hand, metrics in recruiting refer to any measurable data or statistics used to assess various aspects of the recruitment process. These can be qualitative or quantitative and provide insights into specific areas such as sourcing methods, candidate engagement, or diversity hiring.

Examples of recruitment metrics include the number of applications received, source effectiveness percentage, interview-to-offer ratio, and the ATS system’s utilization rate.

Why Do You Need to Track Recruiting Metrics?

Measuring and analyzing recruitment metrics is important because it can help in finding out:

• The right time to fill in the job positions.
• Which sourcing channel brings the most talented candidates.
• How much money does an organization spend per hire.
• Which stages of the recruitment process are productive, and which are not.
• The number of candidates you need to interview for the open job position.
• To analyze your return on investment on the new hires

What are the Most Important recruiting KPIs to Track?

Tracking the right Key Performance Indicators (KPIs) is essential for measuring the success of your recruitment efforts. Here are some important recruiting KPIs to consider:

There are multiple types of recruiting metrics that help you evaluate and optimize your recruitment procedures. Some of the most common metrics include application completion rate, sourcing channels efficiency, interview to hire ratio. Some other most common recruiting metrics you can consider for improving your recruitment procedures are:

1. Qualified Candidates Per Opening

It is defined as the number of people applying for a particular job opening. The number of applicants available for a job helps us understand the demand for specific job roles in the market. By adding relevant criteria for any job opening, an organization can get the most qualified candidates.

2. Application Completion Rate

Formula to Calculate Application Completion Rate: No. of applicants completed the application / No. of applicants started filling the application

This recruitment metric measures the number of applicants who have completed an application as compared to those who did not. Lower application rate might be indicative of issues candidates might have faced while applying for a role like the higher application loading time, device incompatibility, etc. By analyzing these issues, an organization can find out how to streamline the application completion procedure for candidates.

3. Sourcing Channel Efficiency

Formula to Calculate Application Completion Rate: No. of applicants completed the application / No. of applicants started filling the application

This recruitment metric measures the number of applicants who have completed an application as compared to users who did not. Lower application rate might be indicative of issues candidates might have faced while applying for the role like higher application loading time, device incompatibility, etc. By analyzing these issues, an organization can find out how to streamline the application completion procedure for candidates.

4. Time to Hire

Time to hire is the time frame starting from the moment when a candidate applies for the job till the time, he/she is hired. The time to hire depends on the specific job profile and the number of steps included in the interview procedure.

Fewer interview steps might reduce the hiring time and increase the chances of getting the right candidate quickly.

Suggested Read: What is the Role of AI in Recruitment

5. Quality of Hire

Formula to Calculate Quality of Hire: Factor1+ Factor2+Factor3/Number of Factors

The Quality of Hire recruitment metric analyzes the performance of a candidate in terms of work. This is based on multiple quantitative factors such as the number of sales completed, tickets resolved, or the tasks completed on time. By analyzing this metric, the organization can find which employees would be beneficial in the long run.

6. Cost Per Hire

Formula to Calculate Cost Per Hire: Total Recurring Cost/ Number of hires

Cost per hire includes the annual cost spent on the hiring procedure divided by the total number of candidates hired. The cost can be internal and external including advertising, training, time spent on hiring, cost including in onboarding the candidate, etc. By analyzing the cost, an organization can find out the amount it spends to hire a candidate.

7. Interviews to Hire

This metric provides valuable insight into the efficiency and effectiveness of your hiring process. If you find that it takes several layers of screening to make a single hire, it may indicate that there are inefficiencies in your processes.

On the other hand, if you need just a few steps to make successful hires, this could indicate that your recruitment strategies and evaluation methods are quite effective.

8. Offer Acceptance Rate

Formula to Calculate Offer Acceptance Rate: No. of offers accepted / No. of offers X 100

This acceptance rate is defined as the number of candidates getting the offer letter against the number of candidates who accepted it. The lower acceptance rate might highlight the issues in the recruitment process.

There might be issues related to salary, work time flexibility, and employee benefits. However, working on these issues might help in improving the offer acceptance rate.

9. Candidate Satisfaction

Candidate satisfaction is undoubtedly one of the most important recruiting key performance indicators (KPIs) to track. After all, a satisfied candidate is more likely to accept a job offer and stay with the company for a longer period.

By measuring candidate satisfaction, recruiters can gain valuable insights into their hiring process and identify areas for improvement.

10. First-Year Turnover Rate

First year attrition rate is one of the most important recruiting metrics that also helps to measure hiring success. There are two types of attrition; the first is managed attrition when employee leaves as told by the company.

Second is unmanaged attrition when an employee leaves because of his own will. If the employee leaves in the first year itself, it is considered a failed recruitment. However, if the employee stays for more than one year then the recruitment is considered a successful one.

11. Hiring Manager Satisfaction

This metric measures how satisfied the hiring managers are with the overall recruitment process and the candidates presented to them. By monitoring this KPI, recruiters can understand if they are meeting the expectations of their hiring managers and delivering high-quality candidates.

12. Adverse Impact

Adverse impact refers to discriminatory practices within the hiring process that may result in bias against certain groups or individuals. This KPI helps measure and ensure equal opportunities for all candidates, regardless of their gender, race, or other factors.

This KPI not only helps mitigate legal risks but also supports a diverse and inclusive workplace that values fairness and equal opportunity for all employees.

13. Submit to Interview Ratio

Formula to calculate Submit to Interview ratio: The ratio of candidates submitted/presented to hiring managers to the number of given interviews

The Submit to Interview metric helps measure the effectiveness of the initial screening process. It determines how many candidates are being selected for interviews compared to the overall number of applications received.

A low submit to interview ratio indicates that the screening process is not effective in identifying qualified candidates, leading to wasted time and resources on unnecessary interviews. On the other hand, a high ratio suggests that recruiters are successfully filtering out unqualified applicants, resulting in more efficient use of their time.

14. Interview to Offer Ratio

Formula to Calculate Interview to Hire Ratio: Number of Interviews Taken / Number of Offer Letters Extended

An interview to hire ratio defines the number of candidates a hiring manager will have to evaluate before making the selection. It measures the number of interviews taken till the final candidate is selected and closed with the offer letter. By analyzing this metric, an organization can find out how much time is spent on interviewing candidates to fill in a position and find ways to reduce the interviewing time.

15. Candidate Net Promoter Score (NPS)

NPS measures the likelihood of a candidate recommending your company to others based on their experience during the recruitment journey. This metric goes beyond traditional KPIs like time-to-fill or cost-per-hire and focuses on the overall satisfaction and perception of candidates.

Suggested Read: 10 Best Recruitment CRM Software for Recruiters & Small Businesses

New Methods to Increase Recruitment Effectiveness

With the advent of new technologies and changing demographics, there are several innovative approaches that can significantly increase recruitment effectiveness.

• Employee Referral: It encourages current employees to refer qualified individuals in their network. This program offers incentives like referral bonuses to increase participation and attract top-notch candidates who fit well within the organization.
• Social media recruiting: Leverage platforms like LinkedIn, Facebook, and Twitter to promote job openings and engage with potential candidates. You can also run targeted ads to reach individuals with specific skill sets or backgrounds.
• Use AI-powered tools: You can use artificial intelligence (AI) tools like Skillate, Manatal, SeekOut, etc. that help recruiters with candidate screening, resume parsing, skills assessment tests, and video interviewing. These technologies can efficiently shortlist qualified applicants while streamlining the selection process.
• Attend Job Fairs and Industry Events: It is one of the most effective ways to hire candidates. Participate in industry-specific job fairs or events to connect with potential candidates who are actively seeking opportunities within your field. This approach allows you to engage directly with prospective talent while showcasing your company’s offerings.
• Develop Partnerships with Colleges and Universities: You can forge relationships with educational institutions that offer programs relevant to your industry or desired skill sets. Collaborate on career development programs, internships, or mentoring initiatives that can help attract emerging talent or fresh blood from these institutions.
• Prioritize Candidate Experience: Always make sure that your recruitment process provides a positive experience to candidates from start to finish. Keep candidates informed about their application status and provide feedback when necessary. A smooth and respectful hiring experience will increase your reputation as an employer.

How to Simplify Recruitment KPI Reporting and Recruitment Effectiveness?

To simplify recruitment KPI reporting and improve recruitment effectiveness, consider the following steps:

Asses Your Recruitment Goals

Before directly diving into recruitment KPI reporting and effectiveness, it’s crucial to assess your overall recruitment goals like:

• What are you trying to achieve with your hiring efforts?
• Are you looking for a specific number of new employees within a certain timeframe?
• Is your focus more on quality, aiming to find the best possible candidates for each open position?

By clearly defining your recruitment goals, you will be able to streamline the reporting process and focus on metrics that truly matter.

For example, if your goal is to hire a certain number of employees in a specific period, tracking metrics such as time-to-fill or applicant conversion rates can provide valuable insights into the efficiency of your recruitment process.

Leverage Recruitment Technologies

The adoption of recruitment technology is at rocket speed. According to research conducted by Employ and Jobvite, 59% of HR decision makers surveyed have intentions to boost their investment in ATS (Applicant tracking systems) in 2023.

Additionally, 50% of these decision makers are looking to allocate more funds towards CRM systems as well. By embracing technology solutions specifically designed for recruitment analytics, you can streamline your KPI reporting and enhance the overall recruitment effectiveness.

Collaborate with stakeholders for recruitment

Collaboration with stakeholders can significantly give you an upper hand in simplifying recruitment KPIs. Involving stakeholders from different departments can bring fresh perspectives and ensure that they are using the right metrics. By doing this, recruiters can gain a better understanding of the specific needs of each department and tailor their recruitment strategies accordingly.

Gather feedback on the recruitment process

Engage with individuals who have gone through your process to gather feedback and enhance your recruitment efforts for the future. Seek input from new hires, as well as those who withdrew or were not hired.

You can also create a survey and have respondents rate each question on a scale of one to five, or something similar. This way, your recruitment team can gather even more valuable insights. Moreover, you can include multiple choice or open-ended questions.

Consider questions like:

• How was your overall experience with the recruitment process?
• Rate the clarity of the job description and requirements.
• How effective was the communication throughout the recruitment journey?
• Were the interview questions relevant and aligned with the role?
• Rate the responsiveness and timeliness of the recruitment team.
• How satisfied are you with the onboarding process?
• Did you feel adequately informed about the company culture and values?
• How likely are you to recommend this company to other job seekers based on your experience?
• What suggestions do you have for improving the recruitment process?
• Is there any additional feedback you would like to provide?

Engage with your passive employees

Engaging with passive employees of your company is a powerful and often untapped medium for improving recruitment effectiveness. These are individuals who are not actively looking for a job but may consider new opportunities if the right one comes along.

This recruitment approach demonstrates genuine interest in their skills and is bound to capture their attention. Moreover, leveraging social media platforms and personal connections can aid in identifying potential candidates while also promoting your company’s visibility.

Additionally, certain Applicant Tracking Systems (ATS) like Zoho Recruit use machine learning capabilities to speed up locating qualified passive candidates for available positions.

Tips to Create Your First Recruitment Report

Recruitment reports are essential in providing insights into and measuring the effectiveness of your recruitment processes. However, creating your first recruitment report can be daunting. To help you get started, here are a few tips:

• Define clear recruitment goals and KPIs Gather relevant data and metrics
• Use visualizations to present data effectively Include an executive summary for key insights
• Segment data based on different recruitment stages
• Analyze the effectiveness of recruitment sources Assess time-to-fill and cost-per-hire
• Evaluate the quality of hires and retention rates
• Compare recruitment performance over time
• Include recommendations for improvement

Related Categories: Recruitment Software | Payroll Software | Workforce Software