Transcript Measuring Recruitment - AMITY GLOBAL BUSINESS SCHOOL

Measuring Recruitment
Key Considerations
 Degree of Centralization
 Size of the Organization
 Role of HR in recruitment
 Systems Maturity
What Firms are Measuring Today
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2001
Cost of Employee Behaviors
(absenteeism, smoking, etc.)
Turnover costs
Employee Replacement Costs
Economic Benefit of additional
recruiting
Economic Benefit of various
training levels
Economic Benefits of high,
medium and low performance
on a particular job
2006
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Time to Fill
Offer Acceptance Rate
Training Investment (ROI)
Cost of Hire
Employee Replacement Costs
% of employees trained
% employee utilization
Voluntary & Involuntary
separation rates
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STRATEGIC
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ALIGNMENT
RECRUITS
Hiring rate
Executive satisfaction
R.O.I. by employee
category
PROSPECTS
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On-boarding time
Conversion rate on
Internal referrals
Candidate satisfaction
(with recruitment
process)
Early days turnover
ratio
Job progression rate
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HR
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OPERATIONS
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Response rate
(attraction power)
Query response time
Referral rate
Acceptance rate
Internal client satisfaction
Gap-to-Hire cycle Time
% Appropriate closure
Cost per recruit
Strategic Alignment
Question
 How many Candidates do
you need?
 Are you meeting Executive
expectations?
 Are we getting our
money’s worth?
Metric
 Number of Candidates you
need to find by level, role,
and skill set.
 Satisfaction survey and
interviews with key
business leaders.
 ROI of recruitment activity
in relation to avoided cost
of turnover.
Prospects
Question
 Which methods for finding new
talent are most effective?
 How long does it take to find the
types of talent you need?
 Are we a preferred employer?
 How quickly do you respond to
qualified talent?
 Metric
 Response rates for all
recruiting tactics: web site,
advertising in media and direct
mail, job fairs or other events,
referrals etc.
 Rate of talent acquisition by
level, role and skill set (time to
hire).
 Referral rate.
 Turnaround time for candidate
inquiries received via Web site,
email, phone, regular mail,
referrals and events.
HR Operations
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 Question
How do you decline candidates
who are not appropriate while
ensuring that they send you
referrals? How can you decline
them graciously?
Are your internal clients satisfied
with your ability to support their
recruitment needs?
How quickly are we filling
positions?
How much does it cost to
support the recruiting process?
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 Metric
Time to decision and time to
follow-through communication
and appropriate closure.
Internal Client Satisfaction
Surveys and interviews.
Cycle time from when the need
is identified to start date.
Aged “request” or “vacancy”
reporting.
Time and money associated
with recruiting.
Recruits
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Is our process recruit
friendly and effective?
How quickly do new
recruits become functional
in their role?
Can you manage/handle
their referrals?
Are the new recruits
staying?
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 Metric
Candidate satisfaction
with the recruitment
process (via surveys and
interviews with new
hires).
On-boarding time.
Job progression rate.
Conversion rate. Number
of repeat referrals.
Early days (3-6 months)
turnover ratio.
How to Calculate Common Metrics
 Formulas necessarily differ from
organization to organization and MUST
consider both hard and soft costs that
impact the organization most profoundly.
 These are just the “formulas” – creating the
numbers that fill the formulas is the trick!
 Metric
 Accession Rate
 Cost Per Hire
Cycle Time (time to fill)
 Offer Acceptance
Rate
 Description
 New Hires + Replacement Hires
Total Headcount
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Hiring Costs__ _
New + Replacement Hires
 Days to Fill (from requisition)
New + Replacement Hires
Offers Accepted
Offers Extended