For HR professionals, there are many recruitment metrics, however, most do not provide the right value when measuring the effectiveness of the function. Typical measures focus on time to fill and agency costs. These measures often have many more questions than answers and if read incorrectly, may have a negative impact on the organisation when improved.
For example, if we notice that time to hire has increased, we may set a KPI to improve this measure. If we find later down the track that we performed so well on this metric, that it has improved by 20% from 70 to 56 days to fill, that would be wonderful!
Significant improvement to this measure if not looked at from a wider perspective, can actually have a negative impact on the organisation.
Here are some recruitments metrics to consider when viewing this from a wider perspective;
1. New Starter Attrition: This metric focuses on new hire fit to the organisation and one way to measure this is to look at the number of permanent new hires within a 12-month window that have left the organisation. Ideally, you would want to set a benchmark by role and review this at the end of each year to understand the significance.
To create a greater impact on this measure, you could also look at total replacement cost to rehire and or total cost of employment minus revenue generated (if revenue-generating).
Ensuring all things are the same, understanding if this has increased or decreased by cohort will allow you to identify gaps for improvement e.g. source of hire, selection within the pipeline or management efficiencies in the first year of employment.
Not all new starter turnover can be avoided, however, if employee fit is considered to be crucial, then there is a dollar benefit that can be achieved by looking at this data.
2. Time to Productivity: This measure is crucial for any business that wants to optimise productivity. Focusing on this metric as a measure of the recruitment pipeline’s performance is possible with the addition of a few key elements.
First look at implementing a job family framework.
Performance can then be measured prior to probation and annually to then gauge productivity. For new employees, has this improved for a similar group of new hires in the past?
To enhance this measure, you could look at machine learning to understand better ways to attract or review potential performance during recruitment, or prior to probation.
3. Time to onboard: The amount of systems and emphasis on technology can be a nightmare for any manager or new starter that wants to make an early impression. This applies to any role but in particular specialist roles where computer work may be a core requirement.
Optimising productivity in the first couple of months should be a priority, this can be difficult, depending on the complexity of enterprise architecture. Tracking the speed at which an employee has been fully on-boarded and is ready to start work is crucial to understanding where potential bottlenecks may exist so you can improve the process for the next new hire. Digital check-lists is one way you can achieve this.