Recruiting metrics: definition and how to measure hiring success 

Recruiting metrics can boost company’s results and enhance the Human Resources strategy by improving the process of hiring candidates.

In this article we will show you that this is not the case by explaining in detail what are metrics for recruiting and how to measure hiring success.

What is a recruiting metric?

A recruiting metric is a measurement that provides a global view of data relating to the company’s human capital in order to support decision-making based on the objectives predefined in the recruitment strategy.

The implementation of indicators for each dimension of your company seeks to optimize talent assessment, in addition to analyzing factors such as absenteeism, it also contributes to employee performance evaluation or to detecting problems in your teams or procedures.

When we talk about metrics for recruiting we want to emphasize their importance as they are the first metrics involved in the relationship between the future employee and the company.

These indicators have begun to be highly valued since Human Resources departments have ceased to deal with mere administrative procedures to become a value-added area in the recruitment, assessment and retention of a company’s talent.Despite the improvement in assessment, the implementation of recruiting metrics still has some way to go, as it is considered complex.

How to measure recruitment effectiveness? 23 metrics

To measure the recruitment effectiveness you can take as a basis a series of 23 metrics that we list and develop below:

1. Quality of hire. Measures the performance and success in hiring new employees, their job performance, retention rates and their adaptation to the organization. The higher the quality of hire, the greater the effectiveness of the process.
2. Cost per hire. This is the total cost of hiring a candidate. It includes not only the physical process, but also advertising, recruitment agency fees and other recruitment-related expenses. A low cost per hire means that the quality of the recruitment process is higher and more efficient.
3. Offer acceptance rate. This is more than an important metric; it is critical in determining the productivity of recruiters by assessing the percentage of candidates who accept the job offer.
4. Time to hire. Corresponds to the number of days needed to fill a vacancy from the time the job offer is posted. A low time to hire is synonymous with a very efficient recruitment process.
5. Time to fill. Reflects the time it takes for a candidate to identify a job opening and fill the vacancy in an organization. Measuring time to fill is extremely necessary because it impacts the ability of recruiters to find ideal candidates and bring them on board in a timely manner.
6. Application completion rate. Measures the performance and quality of systems, platforms and processes related to job applications. It can detect problems in the selection process if the percentage of applicants who do not complete the process is high.
7. Attrition rate. This is the rate that measures the number of employees a company loses in a given period of time. Its importance lies in the additional cost of replacing talent that decides to leave every so often.
8. Sourcing channel effectiveness. Identifies the job boards, social networking sites or professional forums that offer the best return on recruitment.
9. Candidate experience. This metric measures candidates satisfaction and experience during the hiring process on factors such as company communication with them, timeliness and feedback received. The better the candidate experience, the more effective the hiring process will be.
10. Hiring manager satisfaction. This is a measure of manager satisfaction with the quality of the hires made. This can be done by surveying managers on the competency levels and performance appraisal of new hires.
11. Candidate Net Promoter Score. The NPS is an excellent way to know the candidates’ assessment of the selection process and their situation in the company. Among its repercussions is that the candidates will consider recommending others to fill vacant positions based on their own experience.
12. Interview-to-hire ratio. This ratio compares the percentage of candidates presented by recruiters who are ultimately hired. It shows how well you are searching for and detecting quality candidates.
13. Retention. It’s not just about recruiting people, it’s about getting them to stay with the company for the long term by reducing employee turnover to the minimum possible.
14. Applicants per Opening. As the name suggests, this metric measures the number of candidates who apply for a vacancy.
15. Candidate job satisfaction. Evaluates the candidates’ satisfaction with the company as to whether what was promised during the recruitment process is in line with reality.
16. Number of open positions. This is the number of positions for which the process is still active. It can be compared to the total number of positions offered by the company to determine the success of the recruitment strategy.
17. Selection rate. Reports the number of professionals hired versus those who have applied for a job.
18. Turnover rate. This is a key metric, as it provides information on employees who leave voluntarily or on those who are fit for the job and are fired. Both situations have a direct effect on the recruitment costs incurred by the organization.
19. Recruitment funnel effectiveness. The importance of this metric is great, as it affects the company’s bottom line. The effectiveness and profitability of the recruitment funnel results from efforts to fill open positions and ranges from job posting, branding as an ideal place to work, sourcing active talent or passive candidates.
20. Time in process step. Provides information and breaks down the time to hire compared to the amount of time a job seeker spends on each step of the hiring process.
21. Candidate diversity. Diversity is a measure related to inclusion. It assesses such things as the percentage of diverse candidates and the percentage of diverse hires. If this metric is high, it means that the effectiveness of the hiring process is also high.
22. Candidate response rate. This is the rate of people who respond to a job offer or email. It is also known as Prospect Response Rate or Response Rate.
23. Application drop-off rate. Measures the number of applications that are initiated versus the number of them that are 100 % complete. 

Thanks to the correct management of recruitment metrics, you will increase the participation, commitment and trust of your candidates and employees, offering safe and respectful environments in your selection or training processes. 

Don’t forget that our proctoring plans will meet the needs of your projects in this regard.

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Updated on 30/08/2024