The selection and hiring of personnel is not an easy task, since the success of your company or organization depends on it to a great extent. That is why it is essential to have indicators that help you make decisions based on data when recruiting.
In this article we will explain what recruitment indicators are and we will detail a selection of the best ones to help you in this process.
What are recruitment indicators?
In recruitment and selection, key performance indicators (KPIs) are measures that assess the effectiveness of the recruitment process and the team in charge of executing it. When used properly, they are valuable tools for measuring and then analyzing the stages involved in recruitment.
Recruitment and selection indicators help to optimize the process, as they usually provide information on how close the company is to the recruitment objectives set and allow the necessary adjustments to be made in order to achieve them.
Importance of measuring recruitment and selection processes
Personnel selection is not something that should be done blindly or based on intuition, but should have recruitment indicators that measure the success of the recruitment process, as this is the only possible way to improve and optimize internal processes.
What is measured in recruitment?
What is measured in recruitment is the quality of the process and, above all, the hires made. What does this mean? To know if the recruited workers meet the objectives of the position and the company’s search.
But not only that, recruitment and selection indicators also measure the effort dedicated by the human resources area to this management, the experience of the candidates and the operating costs involved.
And another important measurement issue is time, i.e., how long it takes to hire new personnel, which speaks of the productivity and efficiency of management, and may shed light on the need to invest in more dynamic tools to streamline the process.
The best recruitment and selection indicators
Do you want to know which are the best recruitment and selection indicators? Here we leave you a selection of the best recruitment indicators. Take note:
Time to hire
As its name suggests, it measures the time that elapses from the beginning of a candidate’s recruitment until he/she is hired. In this the result is clear: a shorter average time to hire tends to indicate that the process is agile and effective.
The formula is as follows:
You must divide the sum of the hiring times of all candidates by the total number of hires made.
Ratio of average cost of outsourced search
Indicator used to evaluate the efficiency and cost-effectiveness of using search and recruitment services through external providers.
The formula is as follows:
Total outsourced search costs x 100 divided by the total number of recruitments made.
Effectiveness of recruitment sources
This evaluates whether the sources used to recruit candidates are generating positive results in terms of quality and quantity of candidates who advance in the selection process and are hired.
The formula is as follows:
The total number of hires from a source x 100 is divided by the total number of candidates from that source.
Interview effectiveness rate
This refers to the proportion of interviews conducted by the internal client (i.e. area, manager, area manager or responsible employee who requested the recruitment) compared to the total number of selected candidates that were sent. This indicator measures how many candidates who have been selected and sent for interview advanced in the process and reach the interview stage.
The formula is as follows:
The number of interviews conducted by the internal client x 100 is divided by the total number of selected candidates sent.
Number of qualified candidates per vacancy
This type of indicator determines how many candidates meet the minimum requirements and competencies necessary to perform the role of the position being offered.
The formula is as follows:
The total number of qualified candidates is divided by the total number of vacancies.
Total Hiring Rate
This calculates the rate at which a company is hiring new employees in relation to its current payroll. This indicator can help assess an organization’s growth, its hiring needs and its ability to retain workers.
The formula is as follows:
Total number of people hired x 100 divided by the number of employees.
Hiring cost
The efficiency and profitability of the hiring process is evaluated here. To calculate it, it is necessary to consider all the costs involved in hiring a new employee and divide them by the total number of new employees hired. This calculation is also useful if you add the payroll cost of every recruiting worker and you can contrast the actual cost versus outsourcing of this process.
The formula is as follows:
Divide the total recruiting costs by the total number of new hires.
Annual vacancy fill rate
Measures the percentage of new positions required at the beginning of the year that have been successfully filled. This allows us to know whether staffing needs are being met in a timely manner and to identify whether the initial plan has been respected or whether there have been deviations.
The formula is as follows:
Total intake to fill new positions x 100 divided by the annual recruitment requirement.
Recruitment and selection process efficiency rate
This indicator measures how many of the candidate search requirements have been successfully completed.
The formula is as follows:
You should divide the completed search requests x 100 by the total number of hires made.
If your company or organization requires advice in the recruitment process, Kilpatrick and a good human resources department can be of great help to companies when optimizing the recruitment process, choosing and calculating the best recruitment indicators.