A Guide on How to Track Recruiting Metrics for Success

A Guide on How to Track Recruiting Metrics for Success

When you’re in charge of the recruitment process for your business, there are many different elements that have to come together to make it all work as it should and to ensure you get the results you’re looking for. Some things you’ll need to pay close attention to are your recruitment metrics, and this guide on how to track recruiting metrics for success should help you get started. More than that, it should help you move forward. With that in mind, read on to find out more.

Table of Contents

What Are Recruitment Metrics?  

So, just what are recruiting metrics? It’s easy to say they’re important and to give you ideas on how to track them properly, but unless you actually know what they are and what they do, it’s potentially not going to seem like much of a priority – and it is.

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Basically, recruiting metrics are quantifiable measures that help businesses and organisations understand how well their hiring process is doing and how successful the results are compared to what they were hoping – or expecting – would be the case. By carefully tracking these specific metrics, businesses can get a much clearer picture of things like the time to hire, which is a key indicator of how efficient the hiring process really is, for example.  

Another metric to look into is the source of hire, which shows where candidates come from (such as from a job ad, social media, online job board, a referral, and so on). This is a handy piece of information to have because it shows hiring managers where they can allocate their recruitment budget – to stop paying for advertising that doesn’t work and focus more on areas that do.  

Another key metric is cost-per-hire, possibly one of the most essential to track. Again, when you have a limited recruitment budget, fully understanding your cost-per-hire can help pinpoint areas for improvement.  

There are many other types of metrics to look at when it comes to recruitment, and we’ll go into them in more detail later in this post. For now, it’s important to know what recruitment metrics are in broad terms and why you need to track them (as well as how to track recruiting metrics), which is what we’ll discuss now.  

 

Why Track Recruiting Metrics?  

Having a good team in your business is vital if you want success. They say that if you look after your employees, they’ll look after your customers, and that is true, but you also have to have good employees to start with, and using your recruiting metrics to find them and keep them will make a lot of difference to the overall outcome.  

With that in mind, here are some of the reasons why tracking these metrics is so important.

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Making Your Tactics More Effective  

The last thing any business owner wants is to lose money or spend it unnecessarily, and this is the first reason why tracking metrics in recruitment is so vital – you’ll be able to optimise the effectiveness of your recruiting process and ensure you don’t waste any money in the process.  

Metrics like time to hire and the application completion rate give you a great overview of how efficient the process is, and you’ll be able to see when job seekers make a decision about whether or not to continue their application. By knowing this, you can tweak the process to ensure that candidates do make it all the way through, giving you more choices and making your recruitment budget go further.  

 

Good For Time Management  

Time is money, as they say, and you want your recruitment process to make you money, not lose it. This is where the time to hire metric comes in useful and why measuring it is going to help you improve your processes and your business. Good time management helps you because it means you won’t have to take too much time away from the business to hire people, but it also helps your potential candidates because it proves to them that you know their time is precious; they’ll have a much more positive experience, and that’s going to ensure you get more candidates as time goes on (word spreads, whether it’s positive or negative).  

 

Enhancing The Candidate Experience  

Following on from the point above, your recruiting metrics can also make the candidate experience better in other ways, other than good time management. When you track metrics like offer acceptance rate and send out candidate experience surveys, you’ll get a much better idea of how the potential employees feel about everything, from the initial job advertisement to the application process and even the interview itself. Using insights you get from these metrics, you can improve the process for the next round of candidates, making a much more positive and engaging experience for anyone involved.  

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Allocate Resources Properly 

You only have a finite amount of money when it comes to what you can spend on hiring someone, and although that’s going to be a bigger or smaller amount depending on your business and the budget you have, it’s still an amount you need to take care of and spend wisely.  

When you measure metrics, you can see where people have found your job opening and how they’ve applied – you can then allocate funds and resources to the most popular channels and stop paying for anything that isn’t bringing in a decent number of applicants. In that way, you’ll stop wasting money and expand your reach to get a bigger pool of potential candidates.  

 

Ensure The Quality Of Hire 

Metrics like the quality of hire look into the longer term impact of any decisions you make in the recruitment process – it’s not just about getting positions filled as quickly as possible because that’s where mistakes happen. It’s more about filling positions with the right people, even if that takes longer.  

These are the people who can do the job well, of course, but who are also going to be with you for the long term; it’s far cheaper to keep an employee on than to find new ones because they’ve left. Tracking the quality of hire will give you plenty of insights into whether the recruitment process is giving you the people you want and need – if not, you can make adjustments as necessary.  

 

Financial Impacts 

Recruitment metrics actually go past just the hiring process itself and can show you exactly what the financial impacts of talent acquisition really are. You can look at things like average costs and return on investment (ROI) to see how efficient your recruitment process is in terms of the budget you have set aside for it. This will help you in the future because the next time you need to hire someone, you’ll know precisely how much money you’ll need to do it.  

 

How To Track Recruitment Metrics  

man stood thinking

It’s clear that knowing how to track recruiting metrics is vital for your business for all kinds of different and important reasons, but how can you do it? What processes are needed? We’ve got some useful information for you about that, so keep reading to find out more.

Identify Key Metrics 

The first thing to do when you want to track your recruiting metrics is to know which metrics you want to track! That’s going to depend on what your goals are and what you’re looking for – what information do you need to improve your recruiting process and perhaps the results of that process as well? You can look at various things (as we’ve mentioned above), such as time to hire, source of hire, offer acceptance rate, and application completion rate. Knowing how important each metric is to you is vital, so think about each one carefully.  

 

Use Recruitment Analytics Tools  

To make the tracking process simple, think about using recruitment analytics tools that can give you a central place to monitor all the different metrics you want to see – you’ll get real-time data, and you’ll be able to make changes and adjustments quickly before the issue you notice becomes too problematic.  

Recruitment analytics can make the tracking process quicker, easier, and more successful, and you’ll have everything you need to make informed decisions, thanks to the accurate, up-to-date information you’ve got access to.   

 

Use Hiring Automation  

Hiring automation is another way to speed up the process while also keeping your recruitment metrics in order. Automation tools can monitor all your chosen metrics and other important information, giving you all the benefits of analytics without you or your recruitment team really having to get involved – you’ll just get the results and have a chance to work on them.  

 

Have Clear Processes  

It’s also a good idea to come up with clear and precise recruitment processes that can become standard across your organisation. Why is that important? It means that when you’re collecting data, you’ll be able to get accurate information every time that you can measure against previous or future data results. That’s the best way to get a reliable answer about how well your recruitment processes are working – if they become better over time, they’re working well, and if they become worse, you’ll need to make changes.  

 

Regularly Review And Adjust  

Once you have your recruiting metrics, that’s not the end of the story – they’re not going to stay exactly the same, and you’ll need to constantly review them and adjust your recruiting processes accordingly. This might be one of the most important things to bear in mind because times change, candidates expect different things, and your business will evolve, too. If your recruitment strategy doesn’t adapt as well, you might find you don’t get the applicants you want, either in terms of numbers or quality.  

 

Final Thoughts  

When it comes to talent acquisition, tracking recruiting metrics is hugely important and should be something that every business owner puts at the top of their to-do list. It doesn’t have to be a chore either when you’ve got a good strategy in place, and you understand the metrics you need and what to do with the results. When you’ve got all that, recruitment becomes easier and your business can be more successful.  

For more information on essential recruitment metrics you should be tracking, why not download our recruitment metrics cheat sheet?  

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