The recruitment funnel—and its associated funnel metrics—is a way to measure the journey of a…
You already know we live in a tech-driven world—which means you probably also know the importance of data across a variety of job functions. Many teams, like HR and acquisition teams, will set and measure metrics, even of seemingly qualitative results that you might not associate with numbers. Keep reading to learn about some of the most important HR metrics you should be considering.
Why Track HR Metrics?
It may seem strange to track metrics in a position focused on people. But when it comes to recruiting, you can’t ignore the numbers. Like other teams, many HR teams use KPIs—or key performance indicators. KPIs are simply metrics to measure performance. There are a variety of HR metrics that matter and can help you track the effectiveness of your recruitment strategy and processes.
Time To Fill Metrics
In the case of the time-to-fill metrics (also sometimes called time-to-hire), the lower the number, the better. This HR metric is straightforward: it is simply the number of days between when the job is listed to when a candidate accepts an offer. You can measure the time-to-fill metrics for individual job postings or for the company or a department’s average time-to-fill over a certain period of time.
Like the time-to-fill metric, the cost-per-hire can be measured individually or as an average. CPH is an important HR metric because if your CPH is increasing, you’ll know that something in your recruitment process is not as efficient as it should be.
At its simplest, the CPH is measured by adding internal and external recruiting costs and dividing by the total number of hires. So for an individual hire, you’d be dividing by one. What goes into your costs can be determined by you and your team. Some examples include factors like job advertising costs and software subscriptions.
Quality Of Hire Metric
While quality of hire can be a difficult HR metric to measure, it’s an important one to consider. After all, it’s no use having a strong time-to-fill metric if the candidate isn’t qualified or the right fit. While you can measure quality of hire for individual employees, it’s a particularly useful HR metric to measure as an index over time. That way, you can take a holistic view of how your hiring process is improving over time—or what areas might need improvement.
Additional HR Metrics
The three HR metrics above are some of the most common that companies will track. But depending on your goals and needs, you may consider others, such as the below as well as AI recruiting metrics.
- Qualified candidates per opening: You can consider a candidate qualified if you move them beyond the first stage.
- Application completion rate: This straightforward HR metric can tell you how strong your job listing is and if it’s getting in front of the right people.
- Hiring manager satisfaction: This can be determined by a survey following the hiring process.
- New hire turnover: This HR metric is based on the time frame of your choice and can help measure a new hire’s fit.
- Offer acceptance rate: This HR metric is measured by dividing the total number of offers by the number accepted.
How To Track The HR Metrics That Matter
While you can track and manage HR metrics manually, doing so can quickly become an unwieldy and time-consuming task. The best way to track important KPIs, like the time-to-fill metrics, is by using recruitment software.
A robust solution will help you not only collect relevant data but also analyze it. PandoLogic can help companies understand the big data they want to track during all steps of the hiring process. Plus, with real-time results, HR professionals can make real-time decisions—such as adjusting budget or changing campaign strategy. pandoIQ, PandoLogic’s programmatic job advertising platform, is the only programmatic platform that continuously reviews and optimizes job ad performance throughout the campaign to ensure you meet your hiring needs.
If you’re not already tracking the HR metrics that matter, now’s the time to start. Then you’ll have helpful benchmarks to compare against in the future.