Top 7 Hiring Metrics That You Must Track

Introduction

Talent Acquisition is gaining dominance as a key driver of business growth, in today’s knowledge-based digital economy. 

The rise of Gen AI will not only transform the recruiting process, but it will also elevate TA’s role within organizations, talent leaders predict .

Naturally, hiring the right talent is a top prerogative for not only the CHRO, but the CXO suite. To make recruitment truly deliver value, it is critical to make the recruitment process both efficient and effective. Measuring and tracking the right hiring metrics is a critical input to achieve this. 

What Are Hiring Metrics?

Recruitment metrics are data points that help organizations assess, track, manage, and improve their hiring process. Hiring metrics provide real insights into various aspects of the recruitment funnel, and enable data-driven decisions to “hire right” for the organization. The right hiring metrics help Talent Acquisition leaders improve the hiring process, and also align the hiring strategy with the overall people strategy and business strategy. 

Why Should You Track Hiring Metrics?

The cost of a bad hire is very high – as much as $15,000 on average. Bad hires can lead to negative outcomes such as lost productivity, lost business, lost reputation among both client and employees, reduced employee morale, wasted costs (recruitment costs, training costs, onboarding costs), and even legal implications. Such issues can result from inefficient hiring processes, leading to talent leaks, skills-role mismatch, cultural misfits, and subjective selection bias. Tracking the right hiring metrics acts as a check-and-balance to examine, assess and stay on track,  for both the quantity of hire and quality of hire. 

 7 HiringMetrics You Must Track 

• Time to Hire: Measures the number of days taken to fill a position. It is usually calculated from the day a job requisition is opened till an offer is made or offer is accepted by the candidate. Tracking this helps understand how speedy the hiring process is. The time to hire varies by factors like nature of skill, level of hire, talent diaspora, and so on. For example, certain domain specialist skills or senior roles may take longer Time to Hire.
• Cost Per Hire: Measures the average money spent on hiring a single candidate.
  Cost of Hire = Total Internal costs + Total External Costs / Total number of Hires
  Internal costs can be the cost of hiring a team, systems, resources; while external costs are usually job ads, social media promotions, and hiring consultants.

• Quality of Hire: Usually measured by how successful a new hire is in the company i.e. the performance metrics of the new employee in the first year of employment. It also comprises elements like job performance, productivity, and retention rates.
• Offer Acceptance Rate: Measures whether an organization understands the candidate’s needs and wants. Some factors that influence it are whether job postings are clear and communication is transparent. One can think of it as a measure of overall candidate experience and ‘trust quotient’ between employers and candidates.
• Source of Hire: Measures which hiring channels are working well. Arriving at the right “Sourcing Mix” is very important for recruiters to drive hiring efficiency. This metric tracks which talent came in from which sources, such as recruiting agencies, company career page, job boards, social media hiring, AI-sourcing, referrals, and so on.
• Candidate Satisfaction: Measured by the candidate net promoter score (NPS), it assesses the candidate experience i.e. how satisfied candidates are with the recruitment process. Usually it is gathered through candidate surveys and feedback mechanisms.
• Retention Rate: Measures whether a new hire chooses to stay with the company in the first year i.e. first year attrition or early attrition. Stickiness to an organization may indicate an alignment of a person’s values with the organizational values, and helps harness talent better for business growth. 

How HiringMetrics Can Benefit Your Business?

• Optimized Hiring Process: Hiring is a time-intensive, effort-intensive and operationally heavy process. The entire hiring funnel consists of several stages, from Sourcing to Screening to Selection to Offer Making, to Onboarding. Today, the rapid rise of human-machine teaming presents an urgent opportunity to re-examine the productivity equation. Such complex variables in hiring add to the cost of hiring. Hence, streamlining the hiring process is a must to ensure cost optimization and best fit. 
• Improved Quality of Hires: Finding the right skill-role fit is an ongoing challenge amidst today’s diverse skills landscape. Especially, as AI and Gen AI transform the skills view, soft skills have become critical to organizational success. To add to this, today’s talent is diverse in thought, preferences, generation, mindsets, culture, and such factors. Cutting through the clutter to arrive at the right skills-fit and culture-fit requires high process orientation. Defining the right talent metrics helps. For example, TA should define hiring metrics to measure the candidate experience, to be able to create a strong employer brand and proactively attract one’s “ideal talent”. This in turn, can attract an ideal talent pool, and proactively drive better hiring.
• Data-Driven Decision Making: Externally, recruiters must gather and understand talent intelligence to make strategic hiring decisions that factor in the macroeconomic environment, the business context, and the people needs. Internally, subjectivity can crop up in any talent selection process. A case in point is human biases such as confirmation bias, affinity bias, halo effect, and so on. Companies must turn to valid and reliable data sources, both internal and external, to be able to make objective talent decisions. Data-backed talent decision making is essential to build the skills-based workforce of the future. 

As the skills needed for companies to succeed continue to evolve, TA will be on the frontline of developing skills-based hiring, upskilling, and internal mobility programs that enable companies to adapt.

Get Access to Effortless AI-Driven Hiring With SolveCube

Skills-first hiring allows companies to keep pace with the changing nature of work 

To embrace a skills-first mindset, organizations must derive the best blend of technology and human touch. Technology can drive process orientation, while human expertise delivers the superior ‘humane experience’. SolveCube brings together the best of both worlds in its offering which span across Platform, Talent Acquisition Services, and Talent Tools: 

• Its cutting edge integrated talent platform customizes blended workforce solutions for organizations’ specific talent needs. The advanced AI engine offers unparalleled value in the talent chain – it Sources, Searches, Indexes and Rank Orders the right talent-match. A strong Gen AI capability streamlines hiring tasks like crafting JDs, screening CVs, and matching skills to roles.
  • Acquiring talent is easier and faster, thanks to access to a wide talent pool of experts on short term, fractional, interim or permanent roles. Solvecube’s extensive experience and network enables access to an on demand talent pool of 20,000+  and an aggregated talent pool of 580+ million. For example, organizations can tap into Solvecube’s Growth Partners i.e. industry stalwarts with C-Suite experience, who are now independent freelance professionals and keen to offer their expertise as a service. Similarly, Ninja teams can be sourced and curated on demand from multiple industries to form a team to deliver for short-term and turnkey assignments.
• Companies that need to quickly scale up recruitment efforts can benefit from services like “Recruiters-on-Demand” – a flexible and cost-effective solution that allows access to a pool of experienced HR professionals who can work exclusively on hiring needs.
• Ready-to-deploy people solutions and comprehensive tools such as ice.cube, hr.ready, and p.three. These can help organizations enhance their business-led people strategy with optimal effort, time and investment. 

The Solvecube approach is business-focused, curated, accurate, speedy and scalable.

The idea is to solve for a wide range of workforce challenges and unravel the
true potential of the workforce strategy. Solvecube believes in adding value not just for talent acquisition, but to empower leaders with a complete “blueprint” for the People Strategy.