It’s common for startups to give creative people the opportunity to use their skills in a high-growth environment. This is especially so as the demand for expertise in certain areas increases: companies must develop their own talents.
Agencies face increasing competition for talent searches. This has become one of the most relevant aspects for agencies (if not the most important), since their work or “product” depends on the skill, strategy and creativity of the people.
To attract talent to your company and maintain high-quality work output, you need a solid recruitment program and a deep understanding of the effectiveness of this strategy.
That means you need to focus on numbers that will alert you to problems in your interview process and indicate the best way to retain and recruit highly talented and loyal employees. That is why we bring you the metrics that will help you the most during the recruitment process for your company. Check them out below and improve your company’s talent sourcing performance.
14 recruiting and talent metrics to analyze
- Contract cost.
- Hiring time.
- Source channel.
- Hiring performance.
- Offer / acceptance ratio.
- Turnover costs.
- Withholding rates.
- Permanence in office.
- Employee satisfaction.
- Absence rate.
- Extra time.
- Income per employee.
- Training expenses.
1. Cost of hiring
This number will tell you how much it costs your company to hire a new employee, beyond salary and benefits. A study by the Institute for Research on Labor and Employment, belonging to the University of California at Berkeley, estimates that the cost of hiring an employee is 4,000 USD, and that of a manager or highly qualified person is around 7,000 USD.
Recruitment costs should include the cost of posting on job boards, contracting with interviewers, reviewing applications, evaluating candidates, and interviews.
2. Contract time
60% of companies take between 1 and 3 months to fill a job vacancy. It is important to promptly follow up when a job is published and when the candidate accepts the offer. This will tell you how quickly you selected your best candidate and walked him through the process until you hired him.
3. Source channel
You must monitor the place where you find candidates and know which channels provide you with the best employees (those who accept your offer and become great collaborators for the company). By including this identifier you can check the hiring cost, the turnover rate and the permanence in the position by source. So you can reallocate budgets to hire from the most productive channel.
4. Hiring performance
This figure shows the efficiency of your hiring process. It can be used to monitor every step of the interview and hiring process. You can use the following calculation to understand which candidate sources produce a high-performing ratio.
5. Offer / acceptance ratio
You can confirm the effectiveness of your hiring process by knowing what your offer / acceptance ratio is. This will help you refine your idea of the type of person you should be looking for; someone your agency loves and who also wants to work with you. You could also point out the changes you need to make in the recruiting process. How do you show your culture? Why do these people accept other offers? What prevents people from working in your company? Is salary or location a factor in attracting talent?
Turnover will help you identify retention concerns and should be calculated on a quarterly and yearly basis. In Spain, employee turnover is 59% lower in teams committed to the company, so it is better to follow the number and the market comparison with respect to your annual or quarterly rate.
7. Turnover costs
When an employee leaves your agency, you lose knowledge and productivity. The other employees of the company and the cost of recruiting and hiring to replace this employee are also altered. When an employee quits their job, it costs the company dear, regardless of whether the person was underperforming.
8. Withholding rate
Tracking your retention rate and comparing this number with the turnover rate will give you a bigger picture of the stability of your staff.
It may be better to divide workers into high and low performers to better understand who is leaving and why.
9. Permanence in office
This number reveals how long employees usually stay with your company. You can use this figure to identify how long employees stay before leaving the company. This will allow you to know when coveted employees are “at risk” and also select employees who have a certain level or are in a specific department to monitor their tenure.
10. Employee satisfaction
The employee satisfaction rating tells you how many employees would recommend your organization as a good place to work. This can be measured by tracking specific HR KPIs, which can reduce churn at your company and increase staff retention. You can constantly track this metric and spot significant trends in this regard.
11. Absence rate
The absence rate indicates the average percentage of days that employees are absent for a certain period. It is a key human resources metric that tracks absences that can differ from one period to another and whose results can provide information on the work environment or problem areas in the company.
This HR metric is an indicator that helps evaluate employee productivity based on the overtime they have worked. It can be calculated as an average number of each of the employees and makes it easier to detect the areas that require the most attention.
13. Income per employee
This indicator helps you to know the amount of income generated per employee in a certain period. It is used to compare companies in the same industry. This information helps companies to know if it is worthwhile to continue hiring employees or it is time to invest in automation tools that save hiring costs.
14. Training expenses
The challenge for any organization is to generate smart investment strategies. Therefore, it is worth measuring training expenses to ensure employee retention through training strategies that do not represent large expenses and that ensure future job success.
With these metrics you can optimize your recruitment processes and improve the performance of the recruitment department in your company. Start to analyze and apply them, they will increase the growth of your company.