As businesses become more analytics-driven, they will be able to forecast future resource requirements and hire the right people. Recently, Entelo released their 2017 Recruiting Trends Report, citing important key takeaways:
- Talent acquisition is becoming more personalized in order to attract passive candidates;
- There is a positive correlation between employer branding and higher quality applicants;
- Inbound candidate management must be streamlined and automated to engage top talent;
- Use of data analytics is rising, with nearly 40% of the survey group planning to increase spending on email tools and tracking technology in 2017; and
- Analytics, automation, and predictive recruiting technologies will define recruitment success.
Conclusively, recruitment agencies and HR teams need to transform to meet evolving business demands. Data analytics is the key to showing a precise picture of hiring needs, candidate attraction, and successfully predicting which campaigns and approaches will attract the right talent. Lots of time and effort need to be devoted to finding out the best ways to market the potential candidates, attract the best possible talent, and finally interview and take the best hiring decision. Every organization has a set recruitment strategy in place which is started pretty well, but when it comes to tracking the effectiveness of the strategies once the plan has been implemented many organizations fail to do that. There is a strange mentality going around in organizations – “If you build an effective recruitment strategy, candidates are deemed to come.” Unfortunately, there are only a few employers who are able to perfect the art of getting their recruitment process right the first time. For reaping maximum benefits out of a recruitment strategy, it is important for recruiters to understand which parts of their recruitment strategy are showing positive results and which ones aren’t.
The best way to dig out this particular information is by investing in an effective recruitment software like TalentNow’s RecruitX and using data analytics to maximize your recruitment efforts. Let us now look at some of the data analytics that you can ill-afford to miss if you wish to provide a fresh lease of life to your recruitment efforts:
1. Time to fill
Time to fill is the time it takes from the date a job opening is created through an official email received by the HR professional to the day a job offer is accepted by the candidate. This metric helps in determining the overall efficiency of your recruiting process. According to a survey conducted by SHRM, the average time to fill is 41 days. Time to fill is one of the easiest metrics to improve as there are a lot of recruiting software tools that can be used to automate your recruiting workflow.
To count the number of days to fill the position, decide on your starting point. It can be:
- The moment when the hiring manager submits a job opening for approval or;
- When the HR or finance approves a job opening or;
- When the recruiter advertises the job opening.
The end of the time to fill is usually the day when the candidate accepts the job offer. Decide on your own the best way to start counting the number of days as per the convenience of your organization. But, once you have decided the starting point stick to it consistently for all positions and teams.
To calculate the average time to fill add all the time to fill measurements of each position filled for a given period and then divide it by a number of roles. For example; if you took 30, 40 and 80 days to fill three positions then your average time to fill will be 30 + 40 + 80 / 3 = 50 days.
2. Time to hire
Although the time to hire is often confused with time to fill there is a basic difference between the two. Time to fill is role specific while time to hire is candidate specific. Time to hire is the difference between the day your eventual hire entered your job pipeline (it can be through sourcing or application) and the moment they accepted the job offer. This metric is helpful in gauging the swiftness with which the recruiter spotted the best candidate and moved them across the job’s pipeline.
Time to hire can be calculated with the help of an example. Consider, the day you received an opening for a specific position as day 1. If the candidate accepted the job offer on Day 28, while they applied on Day 15, your time to hire will be 28-15 = 13 days.
3. First-year attrition
There are certain candidates who leave their job during the first year of work which costs organizations a lot of money. That’s why it’s important to keep track of first-year attrition rates so that HR teams can try and reduce it as much as possible. There are two types of first-year attrition – Managed and Unmanaged. Managed attrition is when the contract is terminated by the employer. While unmanaged attrition is when the employee leaves the organization on their own.
You can calculate the first-year attrition metric in the form of a percentage of people who left the job during the year out of the average number of employees during the year. The general practice is to calculate it on an annual basis, but it is good practice to compute it on a monthly basis.
The formula for first-year attrition metric is:
4. Quality of hire
Quality of hire metric helps you determine the value new hires bring to an organization. It includes the contribution of a new hire in the long-term success of the organization in the form of completing tasks, improving their work and helping others. This is quite a difficult metric to measure as quality is very subjective and vague.
Most of the organizations measure the quality of hire by aggregating the new higher performance, new hire engagement and whether they are a good fit for the organization. A high-performance rating means that the recruiter has been successful in the hiring assignment while a lower rating means that the candidate has not been a good talent for the organization. The success ratio for a recruiter is derived by dividing the number of candidates who are considered satisfactory with the total number of candidates hired.
5. Cost per hire
Cost per hire tells recruiters about the total cost incurred to hire candidates for an open job. It includes all the internal and external recruitment costs incurred to fill a number of positions during a specified period of time.
Through this metric, it is possible for the recruiters to get valuable insights about the effectiveness of the hiring processes. The total number of hires represents the total number of positions filled including part-time and temporary hires.
The external cost here represents – agency fees, candidate expenses, new hire training cost, advertising cost etc. While internal cost represents: time spent by recruiters, time spent by a manager, new hire onboarding time, lost productivity and other internal costs.
6. Candidate satisfaction
When the final communication takes place with the candidate regarding your hiring decision irrespective of whether they have been given an offer letter or you have rejected their application, it is important to send a candidate satisfaction survey to know what they felt about the entire hiring process. You can then calculate the results obtained from candidate satisfaction survey and decide on a candidate satisfaction score.
Some of the things that can be included in the survey are:
- The overall satisfaction level of the candidate with the career site (Was it easy to find, easy to navigate, easy to apply etc.)
- The overall experience with the recruiting team (Was the information shared by the recruiter about the position helpful? How was communication throughout the hiring process? Through which communication tool were they contacted? How would the candidate like to be communicated in the near future?
- How many interviews did the candidate go through?
- How would the candidate rate the overall interview process?
- Did the interview team give adequate time to the candidate to ask questions?
A low candidate satisfaction indicates that there has been a mismanagement of the hiring process or there was a lack of clarity in the job description.
Digital technology has provided new avenues for recruiters to think and act creatively. Instead of relying on old, manual approaches, digital analytics give the ability to radically alter the way we source, recruit and ultimately work.
Recruiters today can easily create extensive talent profiles of each role on their CRM. These profiles can contain details of the experience, skills and qualifications required for each role.
Over time, the data you collect from your roles and applicants will start to paint a picture. Databases today are built to categorize this information, clearly referencing which talent profiles your marketing and job adverts are attracting. This data allows you to tailor your marketing approach, appealing to the specific talent you need today and tomorrow.
As your talent acquisition approach becomes more data-driven, you will develop solid, predictive processes to understand which candidate profiles yield the best results for your business and customers. Rather than carrying out expensive marketing that produces little results, you can be confident that your hiring decisions are made based on accurate data.