7 Hiring Metrics you Should be Tracking

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7 Metrics you Should be Tracking-01

Hiring metrics are measurements used to track the effectiveness of different recruitment and hiring activities, and these metrics are key in a data-driven hiring strategy. Hiring and recruitment metrics help you improve your hiring process and enhance the productivity and efficiency of your recruitment team. ZenHR provides you with 7 HR metrics that you should be tracking as a hiring manager so you can make more informed decisions.

  • Time to Hire

Time to Hire is the amount of time it takes the HR department to hire a candidate, calculated starting the very first day that the candidate enters your pipeline. Therefore, the time to hire metric provides an insight into how well the recruitment team is performing and allows you to identify any pain points or areas of improvement in the recruitment process.

How to calculate time to hire? The day you post the job is considered day 1. Let’s say the candidate applied on the 6th and he/she got hired on the 20th. Your time to hire is 20 - 6 =14

  • Source of Hire

This metric indicates where your best candidates are coming from, and it helps you track the effectiveness of your different recruitment channels. Once you know the best source, you can allocate your budget effectively to capitalize on it.

  • Quality of Hire

Quality of Hire, also known as the Success Ratio, calculates the quality of your hires as determined by your company’s performance ratings. It’s an indicator of how well your recruitment team selects the right candidates for the open vacancies.

How to calculate the quality of hire? Number of hired candidates that are considered qualified for the job during a year %Total number of hires during this year

  • Application Completion Rate

This metric calculates the number of candidates who started applying for an open vacancy in your company and successfully submitted their application. 

How to calculate the application completion ratio? Number of successfully submitted applications % Total number of candidates who started an application

  • Offer Acceptance Rate

This is a simple metric that provides an indication of how likely a candidate is to accept your employment offer. If your “Offer Acceptance Rate” is low then you should review your compensation and benefits packages.

How to calculate the offer acceptance rate? Number of offers accepted during a specific time period % Total number of offers during this period

  • Applicants per opening

Contrary to the common belief that a high number of applicants per vacancy is a good indicator, it can actually be an indicator that your job descriptions are too broad. The more narrow and accurate the job description is, the less the number of applicants should be – without compromising the number of qualified applicants.

  • Cost per Hire

You should keep an eye out for this metric, as it could make or break your HR department’s budget. This metric calculates the average cost to fill an open position starting from attracting the candidate to onboarding him/her.

How to calculate the average cost per hire? Total recruitment costs % Total number of hires

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