Recruitment Metrics (aka KPIs)
A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key objectives. In recruitment, KPIs could include metrics like time-to-hire, cost-per-hire, and quality of hire.
Your company sets a KPI to reduce the average time-to-hire from 40 days to 30 days. This helps focus your recruitment efforts and provides a metric for evaluating success.
What are Recruitment KPIs?
Recruitment Key Performance Indicators (KPIs) serve as quantifiable metrics that talent acquisition teams utilise to gauge their efficacy and forecast the likelihood of achieving various objectives. These KPIs function as barometers for success, areas needing enhancement, and subjects warranting further scrutiny.
Defining a KPI
A KPI is distinguished by three primary characteristics:
- Key: It zeroes in on crucial metrics.
- Performance-Related: It is intrinsically linked to organisational goals.
- Indicators: They act as snapshots rather than exhaustive narratives.
While sectors like sales and marketing have universally accepted performance metrics, recruitment lacks such standardisation.
Essential Recruitment KPIs
KPI #1: Qualified Candidates per Opening
This KPI measures the volume of qualified candidates reaching the initial milestone in the interview process. It serves as a precursor to a robust interview funnel.
KPI #2: Candidate Survey Results
This KPI assesses the candidate experience through post-interview surveys. A high proportion of positive responses indicates a favourable candidate experience.
KPI #3: Days to Offer
This KPI tracks the duration candidates spend in your recruitment and interview process, from application to offer acceptance or rejection.
KPI #4: Offer Acceptance Rate (OAR)
OAR calculates the percentage of offers accepted by candidates. A robust OAR typically signifies a well-executed interview process and a strong candidate pipeline.
KPI #5: Recruits to Goal
This KPI evaluates the alignment between your hiring objectives and actual hires. It is a critical metric for assessing the overall success of your recruitment strategy.