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How to Measure the Effectiveness of your Recruitment

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How to Measure the Effectiveness of your Recruitment

​Most people measure recruitment by headcount. But without looking at other metrics, how do you know how effective your recruitment is? Most importantly, additional metrics will help you to improve your process and turn it into a high performer part of your business.

 

Let’s start with the obvious:

 

CVs to Interviews:

How many CVs are you reviewing and how many are you interviewing? Reviewing countless applications can turn itself into a full-time job, therefore coming at an opportunity cost. If your CV to interview ratio is poor, the things to reflect on will be your recruitment adverts, your partners, and your screening team. Tackle it quickly to avoid further wastage.

 

Time to Hire:

A lengthy time to hire can be costly for your organization, as it can lead to productivity losses and increased hiring costs. ‘Time kills all deals’ is a common industry phrase, and it’s absolutely correct! If you are not able to identify the problem, your competition will take advantage of your Achilles Heel.

 

Quality of Hire:

While quantitative metrics are important, it's also essential to assess the quality of your new hires. This can be measured through metrics such as new hire performance evaluations, employee retention rates, and feedback from managers and colleagues. A high quality of hire translates to better productivity, engagement, and long-term success for your organization.

 

Source of Hire:

Tracking the sources of your new hires (e.g., job boards, employee referrals, campus recruitment) can help you identify the most effective recruitment channels and allocate your resources accordingly. This information can also inform your recruitment marketing strategies and help you target the most promising talent pools.

And the not so obvious ….

 

Time Tracking: Do you measure the time attributed to recruitment? And do you turn this time into a physical cost?

A lot of emphasis is placed on a ‘recruitment fee’ and budgets are created with that in mind. But how much does it cost you when Managers through to Partners are meeting with people they don’t hire? More importantly, if they could recover that time, what impact would it have on the bottom line of your business via the additional billable hours or project wins that you will have gained?

 

Tracking your time is important, but tracking the amount of time by employee, level and opportunity cost is critical. If you understand the direct costs of your recruitment, you’ll have a better chance of building a better process and impacting the top and bottom line.