by Jessica Lunk
Enterprise organizations know that there is both an art and science to hiring. The art surrounds creating a culture and employer brand that attracts the right people. The science lies behind recruiting metrics.
So what recruiting metrics should enterprises be measuring to keep their hiring efforts on track?
Time-to-hire and cost-per-hire are popularly tracked. But these metrics don’t always tell the whole story.
Time-to-hire is especially important to track for critical roles in the company, and to quickly ramp up a large staff. However, reducing time to hire at the expense of finding the right candidate can set the stage for setbacks and turnover.
Cost-per-hire ratios can help to pinpoint inefficiencies in the recruiting process – but cost-per-hire shouldn’t be used as an excuse to reduce important resources that help get the best candidates in the door.
In addition to the time and cost required to attain talent, enterprises should focus on the output of recruiting efforts.
For a healthy organization, hire quality is more important (and more difficult to measure) than the initial acquisition time frame and cost.
Unlike time to hire and cost per hire, hire quality cannot easily be reported on from your ATS. In addition, there is no magic formula for calculating quality of hire. But that doesn’t mean that your organization should lose sight of its importance.
How do you measure quality of hire?
You can start by measuring the percentage of new hires who stick to the job. This indicates that they fit your culture and are meeting the most basic job requirements. But to really get a sense of quality – the output – of your talent acquisition efforts, you need to measure performance. Are they hitting goals, staying within established budgets, exceeding expectations?
Keeping the pulse of quality of hire reveals how your recruiting efforts are paying off, and provides a framework for assessing the type of talent that excels in your organization.
Does your organization track Quality of Hire? What challenges do you encounter in assessing hire quality?