Effective recruitment of employees is important to the success of any company. The ability to draw in and hire the best applicants is directly related to the overall skill of your organization.
With rising global competition for talent and online freelancing becoming more viable than ever before, hiring personnel will only find it more difficult to source qualified professionals in the future.
Therefore, it is important to have a recruitment process that’s as efficient as possible. When trying to determine if your process is getting the job done, there are two primary metrics to consider: speed and quality.
Speed of the recruitment process
One of the key hiring metrics is the length of time that elapses between the opening of the job requisition and the presentation of the slate of qualified applicants for a job. The target date for presentation of a slate for most positions is 10 to 14 days from the job requisition date.
By calculating both the average time required to provide a slate and the percentage of slates offered in the target timeframe, you can determine if the recruitment team is meeting expectations for speed. If you find that targets are persistently being missed, you should examine potential root causes, like advertising and posting efficiency, proactive sourcing abilities, and recruiter efficiency.
It is also important to get quick feedback from the hiring manager about the quality of the submitted candidate slate. By measuring the time it usually takes for manager opinions, talent acquisition teams could find out significant bottlenecks in the recruitment system, as well as avoid both setbacks and the possible loss of good applicants who get frustrated with the apparent lack of progress.
Presenting a slate of applicants isn’t good enough if the hiring manager doesn’t like any of the choices.
A crucial gauge of quality is the ratio of applicants offered to the number of applicants picked for an interview. Something less than 75 percent should be a reason for concern and the review of both manager criteria and hiring personnel processes.
You should also be looking at the interview-to-offer ratio, which looks at the average number of applicants a hiring manager must interview to be able to make an offer. Preferably, this ratio should be no greater than 3:1, meaning it takes about three interviews or less before an offer is made.
If this ratio is above 3:1, an evaluation should figure out if this is the due to the recruiter sending in poor applicants or of the manager unable to effectively evaluate applicants.
Either way, a high interview-to-offer ratio means waste both in the recruitment department and for the hiring manager.
Finally, you should be reviewing the offer acceptance rate, which is the percentage of offers made to applicants that are accepted. The best number for this rate depends on the position being filled and the industry, ranging from 80 percent in the highly-competitive professions to 95 percent for less-competitive roles.
By creating a baseline and monitoring the offer acceptance rate month over month, a company can identify the competitiveness of their offers and make changes accordingly.
Are you looking for assistance in finding and retaining top talent?
At Quanta U.S., we help companies with any and all aspects of their recruitment process. If you would like to know how we can assist your organization, please contact us today.