Transcript Recruiting Metrics for Improved Performance

Recruiting Metrics for Improved Performance
Presented By
Tom Darrow
September 11, 2008
NC SHRM State Conference
Copyright 2008 Talent Connections. All Rights Reserved.
Your Experience With Metrics
•How have you used metrics?
Copyright 2008 Talent Connections. All Rights Reserved.
Agenda
•Recruiting Metrics – Why?
•Recruiting Metrics – What to Measure…
•Recruiting Metrics – How to Use…
Copyright 2008 Talent Connections. All Rights Reserved.
To Ponder
“There are three types of lies.
Lies, Damned Lies, and Statistics.”
Benjamin Disraeli
What does 2 + 2 equal?
Copyright 2008 Talent Connections. All Rights Reserved.
Recruiting Metrics – Why?
•To identify process steps that need improvement
•To anticipate market trends and initiate competitive
adjustments
•To report recruiting results to senior management
•To support business cases for programs and
expenditures in recruiting
•To evaluate and reward recruiting staff
•To evaluate effectiveness of change initiatives
Copyright 2008 Talent Connections. All Rights Reserved.
Metrics to Measure
“What gets measured, gets improved.”
Recruiting Metrics
Quality
of Hire
Time
to Fill
Cost
Per Hire
Process
Efficiency
•
•
•
•
•
Resumes
Screens
Interviews
Offers
Accepts
Acceptance
Rate
Recruiter
Production
• Fills
• Use of
system
Source
Channels
• Efficiency
• Cost by
source
channel
Copyright 2008 Talent Connections. All Rights Reserved.
Quality of Hire
“What gets measured, gets improved.”
Recruiting Metrics
Quality
of Hire
Time
to Fill
Cost
Per Hire
Process
Efficiency
•
•
•
•
•
Resumes
Screens
Interviews
Offers
Accepts
Acceptance
Rate
Recruiter
Production
• Fills
• Use of
system
Source
Channels
• Efficiency
• Cost by
source
channel
Copyright 2008 Talent Connections. All Rights Reserved.
Quality of Hire – How to Measure
•Short Term
– Create quality of hire ratings
• A = Exceeds job description requirements
• B = Meets job description requirements
• C = Could meet job description requirements with minimal training
and coaching
– Set company-wide annual percentage goals
• A = 20%
• B = 60%
• C = 20%
– Within a week of hire, collaborate with Hiring Manager to secure
ranking
– After 6 months, secure another ranking from Manager
Copyright 2008 Talent Connections. All Rights Reserved.
Quality of Hire – How to Measure
•Long Term
– Review performance reviews
• Results by recruiter, source channel, department,
hiring manager
– Review retention
• Results by recruiter, source channel, department,
hiring manager
Copyright 2008 Talent Connections. All Rights Reserved.
Quality of Hire –
Considerations/How to Improve
•Expand sourcing channels
– Researchers
– Contract Recruiters
•Is the company’s compensation plan competitive?
•Time to Fill – Is it competitive?
•Create interview methodology and train management
•Encourage internal transfers
•Utilize contractors
Copyright 2008 Talent Connections. All Rights Reserved.
Time to Fill
“What gets measured, gets improved.”
Recruiting Metrics
Quality
of Hire
Time
to Fill
Cost
Per Hire
Process
Efficiency
•
•
•
•
•
Resumes
Screens
Interviews
Offers
Accepts
Acceptance
Rate
Recruiter
Production
• Fills
• Use of
system
Source
Channels
• Efficiency
• Cost by
source
channel
Copyright 2008 Talent Connections. All Rights Reserved.
Time to Fill – How to Measure
•Days From Requisition to Acceptance
•Days From Requisition to Start Date
Copyright 2008 Talent Connections. All Rights Reserved.
Time to Fill –
Considerations/How to Improve
•Stop/Start
– Consider it a new requisition
•How much does it cost to not fill opening?
– Revenue loss per day
•Utilize phone screens
•Reduce # of interviewers
•Utilize technology
– Videoconferencing
– ATS
•Streamline requisition and offer approval process
– Fewer signatures
– Automate
– Salary range approval in requisition
Copyright 2008 Talent Connections. All Rights Reserved.
Cost Per Hire
“What gets measured, gets improved.”
Recruiting Metrics
Quality
of Hire
Time
to Fill
Cost
Per Hire
Process
Efficiency
•
•
•
•
•
Resumes
Screens
Interviews
Offers
Accepts
Acceptance
Rate
Recruiter
Production
• Fills
• Use of
system
Source
Channels
• Efficiency
• Cost by
source
channel
Copyright 2008 Talent Connections. All Rights Reserved.
Cost Per Hire – How to Measure
Total Direct Recruiting Costs
Total Number of Hires*
*or Total Number of Positions Filled
Copyright 2008 Talent Connections. All Rights Reserved.
Cost Per Hire – How to Measure
Total Direct Recruiting Costs
• Marketing
•
•
•
•
•
•
•
•
•
Recruiter Salaries
– Brochures
Agency Fees
– Job Boards
Relocation
– Company Web Site
– ERP
Orientation/Training
Interview Training
Background/Drug
screens
ASP/Applicant Tracking
• Testing
Candidate Travel
Signing Bonus
Copyright 2008 Talent Connections. All Rights Reserved.
Cost Per Hire –
Considerations/How to Improve
•Costs Not to include:
– Time of Hiring Managers and others
– Donations/Grants to Universities
– Administrative costs
• Telephone
• Copies
• Supplies
•How to improve
–
–
–
–
Hire recruiters/contract recruiters instead of search firms
World class Employee Referral Program
Eliminate brochures
Agencies – Preferred Vendor List
Copyright 2008 Talent Connections. All Rights Reserved.
Process Efficiency
“What gets measured, gets improved.”
Recruiting Metrics
Quality
of Hire
Time
to Fill
Cost
Per Hire
Process
Efficiency
•
•
•
•
•
Resumes
Screens
Interviews
Offers
Accepts
Acceptance
Rate
Recruiter
Production
• Fills
• Use of
system
Source
Channels
• Efficiency
• Cost by
source
channel
Copyright 2008 Talent Connections. All Rights Reserved.
Process Efficiency – How to Measure
• Resumes
# of Resumes
# of Hires
• Screens
# of Screens
# of Resumes
• Interviews
# of Interviews
# of Screens
• Offers
# of Offers
# of Interviews
• Acceptance
# of Hires
# of Offers
100
4
25:1
80
100
80%
40
80
50%
10
40
25%
4
10
40%
Copyright 2008 Talent Connections. All Rights Reserved.
Process Efficiencies –
Considerations/How to Improve
•Automate process
•Define service level agreement between
Recruiting and customers
Copyright 2008 Talent Connections. All Rights Reserved.
Recruiting Efficiency Ratio
Total Recruiting Costs
Total Compensation Recruited
Copyright 2008 Talent Connections. All Rights Reserved.
Total Recruiting
Costs
Total
Compensation
Recruited
Recruiting
Efficiency Ratio
Copyright 2008 Talent Connections. All Rights Reserved.
Acceptance Rate
“What gets measured, gets improved.”
Recruiting Metrics
Quality
of Hire
Time
to Fill
Cost
Per Hire
Process
Efficiency
•
•
•
•
•
Resumes
Screens
Interviews
Offers
Accepts
Acceptance
Rate
Recruiter
Production
• Fills
• Use of
system
Source
Channels
• Efficiency
• Cost by
source
channel
Copyright 2008 Talent Connections. All Rights Reserved.
Acceptance Rate –
Considerations/How to Improve
•Don’t confuse effort for accomplishment
•Probably the least important metric
•Target should NOT be 100%
•How to improve
– Better assessment
– More accurate job descriptions
– Analyze declines
• Reasons for decline
• What was accepted?
• Recommendations for improving process?
Copyright 2008 Talent Connections. All Rights Reserved.
Recruiter Production
“What gets measured, gets improved.”
Recruiting Metrics
Quality
of Hire
Time
to Fill
Cost
Per Hire
Process
Efficiency
•
•
•
•
•
Resumes
Screens
Interviews
Offers
Accepts
Acceptance
Rate
Recruiter
Production
• Fills
• Use of
system
Source
Channels
• Efficiency
• Cost by
source
channel
Copyright 2008 Talent Connections. All Rights Reserved.
Recruiter Production – What to Measure
•Quality of Hire
•Fills
– Number of filled positions
•Cost per Hire
•Time to Fill
•Use of ASP/Applicant Tracking System
•Customer Satisfaction
– Good process?
– Hire a fit?
•Retention
– 90 day probation period only
Copyright 2008 Talent Connections. All Rights Reserved.
Recruiter Production –
Considerations/How to Improve
•Role of Recruiting vs. Role of Hiring Manager
– Screen, interview, and counsel or just source and forward?
•Ensure criteria used to assess recruiter is within their
control
•Recruiter Workload
– Exempt level positions – 20 to 25 per month**
– Non-Exempt positions – 35 to 50 per month**
– **depends on how many Hiring Managers and how many
similar profiles
Copyright 2008 Talent Connections. All Rights Reserved.
Source Channels
“What gets measured, gets improved.”
Recruiting Metrics
Quality
of Hire
Time
to Fill
Cost
Per Hire
Process
Efficiency
•
•
•
•
•
Resumes
Screens
Interviews
Offers
Accepts
Acceptance
Rate
Recruiter
Production
• Fills
• Use of
system
Source
Channels
• Efficiency
• Cost by
source
channel
Copyright 2008 Talent Connections. All Rights Reserved.
Source Channels – What to Measure
•Agencies, ERP, Campus, Internet, Company
Web Site, Newspaper
–
–
–
–
–
Acceptances
Quality of Hire
Time to Fill
Cost per hire
Process Efficiency
• Resumes to Hire
Copyright 2008 Talent Connections. All Rights Reserved.
Source Channels –
Considerations/How to Improve
•Research alternative sourcing channels
•Create your own sourcing channels
– User group
– Contest
– Newsletter
– Forum
Copyright 2008 Talent Connections. All Rights Reserved.
Other Metrics
•AA/EEO/Diversity
– Measure for adverse impact
– Track metrics for reporting
– Track metrics for enhancing diversity efforts
• Increase diverse applicant flow
•Generational analysis
•What else?
Copyright 2008 Talent Connections. All Rights Reserved.
Using Recruiting Metrics
•Business Planning
– Budgets
– Resource plans
•Improve Process Efficiency
•Business case
– Systems (ASP/Applicant Tracking)
– Recruiter Headcount
•When report?
– Weekly, Monthly, Quarterly, Annually
•Industry Standards/EMA Survey
– WARNING!
•In-house or outsourcing
Copyright 2008 Talent Connections. All Rights Reserved.
Recruiting Metrics – Getting Started
•Commit to data capture
•Compile company metrics from prior two
years
•Set goals for next fiscal period
– Push for a company staffing plan
•Capture data as it happens
•Communicate to senior management
Copyright 2008 Talent Connections. All Rights Reserved.
To Ponder
“Attaining one’s objectives is not a cause for
celebration; it is a cause for new thinking”
Peter Drucker
“People are the one true competitive measure.”
Hal Rosenbluth
Copyright 2008 Talent Connections. All Rights Reserved.
Thank You!
Tom Darrow
Founder and Principal
Talent Connections, LLC
175 Inverness Approach
Roswell, GA 30075
(770)552-1550 ext. 111
[email protected]
www. talentconnections.net
Copyright 2008 Talent Connections. All Rights Reserved.