Key metrics, or quantifiable measures used by businesses to determine and assess their level of success, are an important part of keeping track of your business’s overall health. This is especially true when it comes to hiring—key metrics can help you better understand your hiring process and how it can be improved. The most important thing hiring managers can do is develop a strategic plan for hiring. A successful hiring plan will incorporate these five key metrics:
1. Hiring Time
Hiring time is an all-encompassing metric. It takes into account the entire length of the hiring process, from the time that you initially post the job to the time when the new hire has been fully on-boarded and is able to take on the responsibilities of the position. It’s an important metric to have in your database because it will give you an accurate idea of the average length of time it takes to have everything running smoothly again. This metric is especially important for hiring managers to be able to better prepare for the hiring process; knowing the length of the hiring process will allow them to make plans that accommodate the expected time lapse before finding the right person.
2. Hiring Sources
This metric takes into consideration where hiring managers are sourcing candidates, including what platforms candidates are using to find out about the position, how many are passive vs. active job hunters, and how many were sourced through referrals. There are a huge variety of platforms being used for job searches, including LinkedIn, Indeed, and Monster. Informal means of finding jobs, like social networking and making connections at industry events, are also becoming increasingly popular.
Knowing where the bulk of your applications are coming from can help you to better target certain platforms. It can also help you see what needs improvement. For example, you might need a more functional system for referrals from current employees.
3. Cost of Hiring
This metric is an important one, as the cost of hiring is often a lot more expensive than you might initially think. The process often accounts for nearly $50k, covering everything from paperwork to onboarding to training. Keeping track of exactly how much it’s costing you to hire a new employee will help you be better prepared for these expenses as they arise. Knowing exactly where your money is going during the hiring process also means you’ll be able to see if there are any areas in which money is being used inefficiently, which can potentially save you money in the long run.
4. Retention Rates
Having too much turnover is not a good sign. It’s anindication that something is amiss and there might be a problem with onboarding or with the work environment that’s turning people away. Keeping track of metrics for retention rates is importantsince it allows you to see patterns that you might not notice if you’re not looking for them. The best way to spot a problem is by being vigilant and takingactive notice of things: gather feedback from your employees, and take stock of how many employees stay on at your company, and for how long.
5. Filled vs. Unfilled Positions
Keeping track of how many vacancies there are compared to how many positions have been filled is especially pertinent to larger companies. This sort of metric should be updated every business quarter, or even every month, and it will help give hiring managers a better idea of how efficiently the hiring process is working. If you have a higher amount of vacancies than recently filled positions, you may need to fine-tune the way you approach hiring.