TAG was recently asked by Jobvite blogger Rebecca Levinson to share the Key Factors To Evaluate Your Recruitment Process. Our detailed thoughts on this are below.
As with any business support capability, there are three core pillars you can use to evaluate your recruiting process: quality, speed, and cost. Depending on your organization’s priorities these considerations will be prioritized and weighted differently. In addition to these pillars, using a qualitative measure, like net promoter surveys, can provide additional context on how well the recruiting process is working. As a result, these four areas give comprehensive insight into any recruiting process regardless of complexity, volume, or scale.
The typical consideration for quality in recruiting is quality of hire (e.g. how many new hires remain in the organization after ninety days). While this metric contemplates a broader organizational impact there are too many factors outside of the recruiting process that can affect the outcome of this measure. As such, tracking the quality of selection, i.e. the conversion funnel, is a stronger representation of the recruiting process itself. The top line metric is the ratio of the number of candidates presented compared to the number of candidates hired. If you need to triage where your recruiting process isn’t working as well as it should, you can drill down a level to look at the following ratios:
When it comes to measuring the speed of the recruiting process, the common metric is time to fill (i.e. days between when a position is approved to when the new hire starts). Similar to the previously mentioned quality metric, there are too many factors outside of the recruiting process that can impact time to fill as defined in most circumstances. Defining time to fill as the number of days from when the position is approved to when an offer is accepted is a much better representation of the speed of the recruiting process itself. While this doesn’t account for the timing to process background checks, most background check vendors track and report this for you. Just as with the quality metric, you can triage time to fill by looking at the interstitial components of the recruiting process to identify bottlenecks:
The fundamental consideration when evaluating the cost of the recruiting process is cost per hire. The devil is in the details because there are a number of business rules necessary to create a consistent and comprehensive measure. Some of these include:
Another metric to consider for cost of the recruiting process is cost avoidance. The idea is to understand how much spend has your organization avoided by utilizing your internal recruiting team versus contract-to-hire, RPO, or staffing agencies. The simple calculation is to multiply the sum of the salaries for all externals hires during the period by an acceptable average placement fee percentage then subtract the sum of your cost per hire multiplied by the number of external hires. Similar to the cost per hire calculation, it will be necessary to develop consistent business rules and assumptions to make this a useful measure.
Net Promoter Data
While all of these quantitative metrics are a great way to see how well the recruiting process is running, it’s critical to consider qualitative feedback mechanisms to understand how people included in the process feel about its efficacy. One of the best ways to do this is to leverage a net promoter survey for three different groups within the recruiting process: hiring managers, hired candidates, and silver medalist candidates (interviewed but not selected). Using the classic net promoter question (“Would you recommend this product or service to a friend?”) along with some clarifying questions for different steps of the recruiting process will give you great insight into where the recruiting process is working well and where it needs improvement.
Using these four key areas gives deep insight into your recruiting process, what’s working well, and where the opportunities lie to make it even better. When analyzing these metrics, remember they not only reflect the performance and engagement of your recruiters but also the other members of your recruiting team - coordinators, researchers, sourcers, hiring managers, other interviewers, and your leadership team overall. Attracting -- and retaining -- top talent is an organization-wide effort and the gaps identified in analyzing the recruiting process might be simple opportunities to improve the process or symptoms of a deeper question about the organization’s commitment to and prioritization of attracting the best talent. Data can only tell you so much of the story so don’t take it blindly. And don’t forget that nothing substitutes context coupled with good judgement.
Andrew Ostler from Employment Crossing reached out for perspective on What Recruiters Look For In A Resume At First Glance. Our thoughts are included below.
Recruiters are inundated daily with a barrage of resumes from candidates looking for their next challenge. As a result, we've developed quick ways to determine if we'll spend additional time reviewing someone's resume. We typically look at the following (in order):