As a recruiter, if you’re not tracking application source through to placement, you’re probably losing money. The more data you have around your recruitment processes, the closer you get to predicting outcomes. The more analytics you pull, the more likely you’ll be able to create accurate forecasts to build a solid strategy from. Here are three main recruiting metrics you should be monitoring.
Know Your Cost Per Hire
Cost per hire measures the total amount of money invested in finding and hiring your ideal job candidate. You can use the metric to gain insight into what is and isn’t working for your recruiting process and efforts. You also can optimize and improve future recruiting strategies and budget planning based on the data. The metric is key to forecasting which recruitment budgets are needed based on the number of hires you need to make. To calculate cost per hire, add up all internal costs of hire, including hardware, software, employee referral incentives, and fixed costs, as well as external costs of hire, including advertising and marketing expenses, recruiting event costs, travel and drug screening. Then, divide by the number of hires in a specific time frame.
Know Your Cost Per Qualified Applicant
Cost per qualified applicant shows how much you spent on a job, campaign or source to produce a qualified applicant. Calculate your cost per qualified applicant by taking your total spend on a job and dividing by the total number of quality applicants received for that job. Combined with cost per hire, you can determine the monetary cost of talent acquisition activities, understand the impact of your efforts, modify strategies and anticipate future costs. These analytics determine which media channels and vendors produce the highest quality candidates for specific positions or skill sets. They also identify and eliminate deficiencies in your strategy. Plus, the analytics show where your recruitment budget may be wasted based on cost data that exceeds estimates. Further, they reveal recruitment costs based on job type, location and/or industry.
Know Your Offer Acceptance Rate
Your offer acceptance rate tracks how many of the offers extended to your candidates are accepted. Tracking the metric over time shows how effective your talent acquisition strategies are. For instance, if your offer acceptance rate is low or trending down, you should review the incentives you offer candidates. For instance, make sure their salaries and benefits are comparable to industry peers and ensure candidates meet with and get offers from team members they’re eager to work with. To calculate your offer acceptance rate, add up your number of acceptances and divide by your number of offers, then multiply by 100. Or, add up your number of offers and divide by your number of acceptances.
Free Up Time to Track Your Application Source Through to Placement
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