For a business to be successful, it needs to be data-driven. By using numbers and analytics to inform key decision-makers, strategic planning becomes a science. Contrary to popular belief, this approach also applies to human resources management. Numbers help plan for the future, but it’s the people who put that plan into action. By using data-driven hiring metrics, organizations can ensure they hire top talent. Here are some of the hiring and recruiting metrics you need to know when searching for a new employee.
Scheduling and Capacity
When a position opens within a business, it’s important for human resources to understand the scheduling and capacity requirements of that position. This means looking at the data surrounding the previous employee that held the position and making informed decisions about how the role will evolve. How many hours of work is associated with this job? Are there periods in which there is more or less work, creating gaps in the workflow?
To be able to properly analyze the different variables (like seasonality and project workload) it’s important to have an employee scheduling tool in place, like this one by Humanity. This methodology applies even in newly formed positions, by analyzing similar roles within the organization.
Time to Hire vs. Time to Fill
Time to hire and time to fill are two similar metrics that offer different perspectives of the hiring process. With time to hire, you’re investigating how long it took to get a person in place from the moment of first contact, usually a submitted job application. This is also referred to as “time to accept.” Alternatively, time to fill indicates how long it took from the moment the previous employee handed in their resignation or the new position was created.
You may be wondering why you would bother with both metrics, as there is an obvious overlap. Having both the time to hire and time to fill gives insight into the cause of any delays. A company might find that they aren’t adequately prepared with a job description and posting process if the time to fill is skewed in comparison to the time to hire. Alternatively, delays in time to hire might highlight challenges with the hiring pool or interview process.
Applicants Per Opening
Evaluating the applicants per job posting can give valuable insights into how your business is viewed in the local and global community. This data can be expanded upon, looking at how the applicant pool compares to how many candidates were chosen for interviews and how many applicants were actually qualified.
It’s worth looking at qualitative data as well. Are people applying to your organization because they need a job or because they want to work in your business specifically? Is there a way to improve the job posting, so it better represents the brand and entices top talent to apply? Are there pre-screening measures that can be put in place to assist with the hiring process?
Cost Per Hire
It’s important to understand the costs associated with hiring. There are the obvious costs, such as paying to have a job posted or hiring a recruiter. Additionally, there are other costs to consider during the hiring process. For example, calculating the value of the time dedicated to the hiring process by managers and HR professionals.
It’s also important to measure costs within the initial onboarding and training process. Someone who is training to learn a position isn’t going to be as productive as someone with experience. Those tasked with training the individual also have a cost associated. Hiring costs can cost between one and five thousand dollars, depending on the nature of the role and the industry. A bad hire can cost ten times that much, which is why understanding the data is important.
The Art and Science of Hiring
To hire the right people, businesses need to find a balance between art and science. The numbers are the science-- they drive decision-making in an analytical manner. The art comes from building a company culture and brand that people want to work for. Empowered human employees create the balance and carry the business forward.