Measuring RecruitmentMeasuring Recruitment

Key ConsiderationsKey Considerations

Degree of CentralizationDegree of Centralization Size of the OrganizationSize of the Organization Role of HR in recruitmentRole of HR in recruitment Systems MaturitySystems Maturity

What Firms are Measuring TodayWhat Firms are Measuring Today

20012001 Cost of Employee Behaviors Cost of Employee Behaviors

(absenteeism, smoking, etc.) (absenteeism, smoking, etc.) Turnover costs Turnover costs Employee Replacement Costs Employee Replacement Costs Economic Benefit of additional Economic Benefit of additional

recruiting recruiting Economic Benefit of various Economic Benefit of various

training levels training levels Economic Benefits of high, Economic Benefits of high,

medium and low performance medium and low performance on a particular jobon a particular job

20062006 Time to FillTime to Fill Offer Acceptance RateOffer Acceptance Rate Training Investment (ROI)Training Investment (ROI) Cost of HireCost of Hire Employee Replacement CostsEmployee Replacement Costs % of employees trained% of employees trained % employee utilization% employee utilization Voluntary & Involuntary Voluntary & Involuntary

separation ratesseparation rates

Hiring rateHiring rate Executive satisfactionExecutive satisfaction R.O.I. by employee R.O.I. by employee

categorycategory

Response rate (attraction power)

Query response time Referral rate Acceptance rate

On-boarding time Conversion rate on

Internal referrals Candidate satisfaction

(with recruitment process)

Early days turnover ratio

Job progression rate

Internal client satisfaction Gap-to-Hire cycle Time % Appropriate closure Cost per recruit

HR

OPERATIONS

STRATEGIC

ALIGNMENT

PROSPECTSRECRUITS

Strategic AlignmentStrategic Alignment

QuestionQuestion How many Candidates do How many Candidates do

you need?you need?

Are you meeting Executive Are you meeting Executive expectations?expectations?

Are we getting our Are we getting our money’s worth?money’s worth?

MetricMetric Number of Candidates you Number of Candidates you

need to find by level, role, need to find by level, role, and skill set.and skill set.

Satisfaction survey and Satisfaction survey and interviews with key interviews with key business leaders.business leaders.

ROI of recruitment activity ROI of recruitment activity in relation to avoided cost in relation to avoided cost of turnover.of turnover.

ProspectsProspectsQuestionQuestion

Which methods for finding new Which methods for finding new talent are most effective?talent are most effective?

How long does it take to find the How long does it take to find the types of talent you need?types of talent you need?

Are we a preferred employer?Are we a preferred employer?

How quickly do you respond to How quickly do you respond to qualified talent?qualified talent?

MetricMetric Response rates for all Response rates for all

recruiting tactics: web site, recruiting tactics: web site, advertising in media and direct advertising in media and direct mail, job fairs or other events, mail, job fairs or other events, referrals etc.referrals etc.

Rate of talent acquisition by Rate of talent acquisition by level, role and skill set (time to level, role and skill set (time to hire).hire).

Referral rate.Referral rate.

Turnaround time for candidate Turnaround time for candidate inquiries received via Web site, inquiries received via Web site, email, phone, regular mail, email, phone, regular mail, referrals and events.referrals and events.

HR OperationsHR Operations

QuestionQuestion How do you decline candidates How do you decline candidates

who are not appropriate while who are not appropriate while ensuring that they send you ensuring that they send you referrals? How can you decline referrals? How can you decline them graciously?them graciously?

Are your internal clients satisfied Are your internal clients satisfied with your ability to support their with your ability to support their recruitment needs?recruitment needs?

How quickly are we filling How quickly are we filling positions?positions?

How much does it cost to How much does it cost to support the recruiting process?support the recruiting process?

MetricMetric Time to decision and time to Time to decision and time to

follow-through communication follow-through communication and appropriate closure.and appropriate closure.

Internal Client Satisfaction Internal Client Satisfaction Surveys and interviews.Surveys and interviews.

Cycle time from when the need Cycle time from when the need is identified to start date. is identified to start date.

Aged “request” or “vacancy” Aged “request” or “vacancy” reporting.reporting.

Time and money associated Time and money associated with recruiting.with recruiting.

RecruitsRecruits

QuestionQuestion Is our process recruit Is our process recruit

friendly and effective?friendly and effective? How quickly do new How quickly do new

recruits become functional recruits become functional in their role?in their role?

Can you manage/handle Can you manage/handle their referrals?their referrals?

Are the new recruits Are the new recruits staying?staying?

MetricMetric Candidate satisfaction Candidate satisfaction

with the recruitment with the recruitment process (via surveys and process (via surveys and interviews with new interviews with new hires).hires).

On-boarding time.On-boarding time. Job progression rate.Job progression rate. Conversion rate. Number Conversion rate. Number

of repeat referrals.of repeat referrals. Early days (3-6 months) Early days (3-6 months)

turnover ratio. turnover ratio.

How to Calculate Common MetricsHow to Calculate Common Metrics

Formulas necessarily differ from Formulas necessarily differ from organization to organization and MUST organization to organization and MUST consider both hard and soft costs that consider both hard and soft costs that impact the organization most profoundly. impact the organization most profoundly.

These are just the “formulas” – creating the These are just the “formulas” – creating the numbers that fill the formulas is the trick!numbers that fill the formulas is the trick!

MetricMetric Accession RateAccession Rate

Cost Per HireCost Per Hire

Cycle Time (time to fill)Cycle Time (time to fill)

Offer Acceptance Offer Acceptance RateRate

DescriptionDescription New Hires + Replacement HiresNew Hires + Replacement Hires

Total HeadcountTotal Headcount__ Hiring Costs__ _ __ Hiring Costs__ _

New + Replacement HiresNew + Replacement Hires

Days to Fill (from requisition)Days to Fill (from requisition)New + Replacement HiresNew + Replacement Hires

Offers AcceptedOffers AcceptedOffers ExtendedOffers Extended