Recruiting KPIs can boost your company’s results and improve your Human Resources -HR- strategy.
These indicators have begun to be highly valued since HR departments have ceased to deal with mere administrative procedures to become an area of added value in the recruitment, assessment, and retention of talent in a company.
Despite the improvement in assessment, implementing recruitment KPIs still has some way to go, as it is considered complex. In this article, we will show you that this is not the case by explaining in detail what recruiting KPIs are and what they are for.
What are recruitING KPIs or key performance indicators?
Recruiting KPIs or Key Performance Indicators are measurement tools that provide a global view of the company’s human capital data to facilitate decision-making based on the objectives predefined in the recruitment strategy.
The implementation of indicators for each dimension of your company seeks to optimize the evaluation of talent, in addition to analyzing factors such as absenteeism, assessing performance, or detecting problems in your teams or procedures.
When we talk about recruitment KPIs, we want to emphasize their importance as they are the first indicators involved in the relationship between the future employee and the company.
What are recruiting KPIs for?
Recruiting KPIs are used to improve your selection processes and identify possible procedures’ weaknesses.
Broadly speaking, they help to:
- Guide company managers in defining the profiles needed.
- Analyze the performance of the HR department.
- Measure the success or failure of previously set objectives.
- Establish an accurate and real-time diagnosis of the selection processes.
- Improve internal and external corporate communication.
Here are some examples of recruitment indicators, as well as some of their formulas.
Average recruitment time
This refers to the days it took to achieve your objective, i.e., the time taken to fill the vacancy offered.
To calculate it, add the days from when the candidate is selected until they accept the offer and divide by the number of vacancies filled.
Duration of the stages in the selection process
Optimizing resources is incredibly beneficial if you keep track of the duration of the different stages of the process.
At this point, it is interesting to calculate the rate of candidates who pass to the next stage in a complementary way.
Candidate conversion rate
This indicator applies to the entire process and to each stage, calculated by dividing the number of candidates selected by the total number of applicants and multiplying the result by 100.
The ratio of candidates hired by recruitment source
Detect and analyze the most effective sources for recruitment in your company as an essential guideline to save time and costs.
Obtain the result by dividing the candidates by type of source by the total number of candidates. Multiply the result by 100 to obtain the final percentage.
Application abandonment rate
This action on the part of the candidate speaks volumes about your company’s ability to attract talent. If it is too high, check the conditions you are proposing; maybe they are not attractive enough.
Analysis of the performance of your corporate website
If you have published the offer on your corporate website or are an agency with your publications, measuring the conversion of visits into applications is essential. You can do this using tools such as Google Analytics.
There is a KPI that does not belong to the selection process but is connected to it: the turnover rate of your collaborators. Knowing it allows you to anticipate your staffing needs.
How to implement recruiting KPIs?
Depending on the type of variables involved, you can measure different dimensions of your HR as long as you respect the following four basic steps that apply to every indicator.
Choosing the unit of measurement
When you are faced with the need to extract data for later analysis, you must select the unit of measurement to capture your results and which should also help you achieve your objectives.
Setting an objective
Answer the question: what results do I want to achieve? That is to say, if you want to reduce your time on personnel selection, you must know which sources are the most efficient or which methods are suitable for selecting the profiles you need, among others.
Plan the source and method of data collection
Closely related to the previous step, the data collection and management methodology approach is essential to simplify the processes.
The sources can be a CRM (Customer Relationship Management, which refers to the customer relationship management system), HR management software, or, failing that, Excel tables, among other possibilities.
Program a frequency for its calculation
Delimiting the periodicity of each indicator allows you to observe the evolution of projects, the stages of a process, and the improvements you are implementing.
In all cases, if you take advantage of the benefits of digitization, you can easily implement your own recruiting KPIs thanks to highly customizable software.
Thanks to the correct management of recruitment indicators, you will increase the participation, commitment, and trust of your candidates and employees, offering safe and respectful environments in your selection or training processes. Our proctoring products will meet your needs in this regard.
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