19 Talent Acquisition Metrics That Should Be On Your Radar
Although many recruiting organizations have been capturing and monitoring performance data for quite some time, it’s difficult to make truly measurable improvements without the use of benchmark data.
Benchmark data provides an objective lens through which information can be viewed and comparisons can be made. And it’s often these comparisons that drive changes in behavior, strategy, or technology needed to move the performance needle.
World-class performance isn’t unattainable, but creating a plan for getting from A to B starts with having a solid grasp on where you stand. ERE is launching a new benchmarking service, Talent Acquisition Benchmarking Services (TABS), which allows you to confidentially compare your department’s important talent acquisition metrics and key performance indicators (KPIs) against peers.
You can sign up to learn more about TABS here. And below, we’ve also shared 19 key metrics (broken up into four different buckets) you should be thinking about—the same set of metrics ERE will be providing benchmark data on through TABS.
1. Time to Fill (TTF)
Recent news indicated time to fill is at its highest in fifteen years, and the number of job openings in the U.S. has reached a new record. Time to fill measures the time required to fill a position in days, with a start date of when a requisition is approved by a business through the date the chosen candidate has completed a background check.
2. Time to Accept (TTA)
A sub-metric of time to fill, time to accept measures the time required to fill a position in days, with a start date of when a requisition is approved by a business through the date the chosen candidate has accepted the job offer.
3. Time to Start (TTS)
Another sub-metric of time to fill, time to start measures the time required to fill a position in days, with a start date of when a requisition is approved by a business through the target or actual start date of the candidate.
4. Recruiting vs Business Consideration (RvB)
It’s important to be able to measure recruiting performance in a cross-functional context. RvB is a two-part calculation. It is first calculated by looking at the date of when a requisition is approved by a business or hiring manager through the date the recruiter submits a candidate to the business or hiring manager for consideration. The second part is calculated by looking at when a candidate is submitted for consideration through when the candidate accepts the position.
5. Time in Workflow Step (TWS)
Time in workflow step is a measure of recruiting efficiency as well as the strength of your overall hiring process. It can be used to identify bottlenecks, and measures the time a candidate is in a particular workflow step, starting when she enters the workflow step and stopping once she moves to the next one.
6. Submittals to Business Acceptance Percentage (SBA)
This is the percentage of candidates submitted for consideration versus those accepted by the business or hiring manager to proceed to the next step in the workflow process. SBA information can be used to show the general quality of candidates, the quality delivered by individual recruiters/whole recruiting teams, and can also highlight overly particular hiring managers or businesses.
7. First Year Quality (FYQ)
Knowing how long new hires stay can be an indicator of recruiting performance, and can be used as the basis for future hiring decisions. First year quality measures the SBA metric plus the percentage of candidates that do not leave in the first year (retention), divided by two.
8. Offer Acceptance Rate (OA)
The offer acceptance rate is a high-level metric, but can be used to drill down into the reasons behind low numbers of acceptance. OA measures the number of candidates presented with a verbal or written offer versus the number of them who accept the offer.
9. Submittals to Hire Ratio (SHR)
Less about efficiency and more about quality, SHR shows how well talent acquisition teams are delivering good candidates to hiring managers. It is measured by taking the ratio of candidates submitted to the business or hiring manager for consideration against the number of hires.
10. Application Drop off Rate (ADR)
As the job search process continues to move online, knowing the strength of your apply process is crucial. ADR is measured by looking at the number of candidates who start an online job application minus the number who complete it, divided by the number who start. It is also suggested to do this calculation broken down by device: desktop vs. mobile vs. tablet, and so on.
11. Hiring Manager Satisfaction
Often impacted by the preceding recruiting quality metrics on this list, hiring manager satisfaction is a high-level KPIs showing how well talent acquisition is doing. This measurement could be made in a number of ways, from using a Net Promoter Score (NPS) to a Likert Scale approach.
12. Candidate Satisfaction
It’s imperative that recruiters not only look at the satisfaction of hiring managers or business partners, but also the candidate experience and how that translates to candidate satisfaction. Like the hiring manager satisfaction metric, this measurement could be made in a number of ways, from using a Net Promoter Score (NPS) to a Likert Scale approach.
13. Source of Application (SoA)
Source of application and source of hire are becoming more important as recruiting leaders start taking a closer look at their return on investments. SoA measures the percentage of the total number of applications broken down by their original source (career site, job board, referral, etc.).
14. Source of Hire (SoH)
Similar to the previous metric, this information can be used to show source performance as well as an ROI on efforts made in specific sources. This measures the percentage of the total number of hires broken down by their original source (career site, job board, referral, etc.).
15. Full Funnel Throughput (FFT)
A holistic look at the hiring funnel can show the strength of a recruiting process as a whole. FFT measures performance of the hiring funnel and individual workflow processes in one place, calculated as a ratio of candidates who move from one step in the hiring funnel (or workflow) to the next. It often has multiple ratios listed in succession to show each step.
16. Candidate Withdrew Reasons (CWR)
Not every candidate will move forward in the recruiting process, and talent acquisition teams need to know why. Candidate withdrew reasons measures the total number of candidates who withdrew from the recruiting process in a fiscal year broken down by their reasons for leaving.
17. Requisition Cancellation Rate (RCR)
Recruiting leaders should know not only which talent acquisition efforts are adding value, but also those that are causing a lull in performance. RCR measures the total number of positions filled in a fiscal year plus any job orders cancelled, divided by the total number of cancelled requisitions. A high number of cancellations equates to wasted time and inefficiencies.
18. New vs. Replacement Requisition Type (NvR)
A company may make 100 or 1,000 hires in one single year, but it’s important to know which of those hires are net new positions. Totaling up to 100%, NvR measures the percent of requisitions or job orders created during a fiscal year for net new growth positions versus the percentage of requisitions created to back-fill an opening. This is a productivity metric for recruiters, but it’s also telling over overall business performance.
19. Recruiting Resources Cost to Acquire (CTA)
The days of aimlessly spending recruiting dollars are ending, as more talent acquisition leaders are starting to monitor, control, and optimize the use of their budget. Recruiting resources cost to acquire measures a recruiting department’s total resource costs divided by the number of candidates hired in a fiscal year.
The database of crucial talent acquisition benchmark data ERE is working to create could deliver incredible insights to your recruiting leadership. Learn more about TABS here.
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