5 Examples of Recruitment KPIs (+ Tips to Track Hiring Success)
Like any business process, constant improvement should be one of your recruitment goals. But how do you make sure your enhancements are working as intended?
The solution is to track recruitment key performance indicators (KPIs), which can show areas for improvement. If you notice it’s taking longer to fill positions, it could be a sign to speed up your hiring process. Otherwise, your company might suffer. In other words, hiring KPIs are crucial because they also affect areas like productivity and company growth.
Did you know that bad hires cost up to 30% of their first-year earnings? So, track every necessary KPI for your recruitment process’ improvement. Doing so lets you reduce costs, make better hiring choices, and improve the quality of new talent.
Let’s go over everything to know about KPIs, from HR recruitment KPI examples to how to improve them.
What Are Recruitment KPIs?
Recruitment KPIs track and analyze your hiring process’ effectiveness. They help you understand your hiring efforts’ performance by keeping tabs on areas like time to hire and cost per hire. By measuring these points, you’ll find aspects to improve and get the best people for your team.
KPIs offer insights into your recruitment process’ quality and efficiency. By measuring how long it takes to fill a role, you can assess your hiring speed. Tracking talent quality helps make sure you’re attracting candidates who can perform well and stay longer. Balancing these two metrics can achieve better hiring outcomes.
Pre-employment tests enhance your talent acquisition KPIs. For instance, EmployTest speeds up your hiring process and improves candidate quality by filtering out unqualified applicants from the start, allowing you to make successful hires faster.
5 Examples of Recruitment KPIs to Track
Let’s look at some recruitment KPI samples for you to stay on top of. These figures will give you a clear picture of how to improve your hiring process.
1. Time to hire
“Time to hire” tracks how long it takes to fill a job from posting to hire. A shorter time means quicker onboarding. To better improve your time to hire, you can use pre-employment tests. By implementing these tests to filter candidates based on skills and competencies, you focus only on the most qualified, reducing the time spent on unfit candidates.
2. Cost per hire
Cost per hire is how much you spend to hire someone. It includes advertising costs, recruiter salaries, and tools expenses. Calculate it by dividing your recruitment efforts’ cost by the number of hires. You may lower this by using cheaper ads or using pre-employment tests to reduce costly interviews.
3. Application completion rate
This talent acquisition KPI example shows how many candidates start and finish your hiring process. It doesn’t matter if you accept them or not. The point is to show off how seamless and engaging your hiring process is. Let’s say your completion rate is low. Simplifying your forms and removing unnecessary steps could help applicants finish.
4. Offer acceptance rate
This metric shows how many candidates accept your job offer. It tells you how much your offer aligns with candidates’ expectations. Boost your acceptance rate by checking that your salary and benefits are up to par with industry standards. It also helps to promote a good candidate experience throughout the process.
5. Net promoter score (NPS)
NPS considers how likely candidates are to refer your company to others based on their hiring experience. You may ask candidates to rate it on a scale from 0 to 10 during onboarding. Improving this metric involves making sure they have a positive experience, regardless of whether they get the job or not. Be transparent, communicate well, and receive constructive feedback whenever possible.
6 Tips to Track and Improve Recruitment KPIs
Knowing the most common examples of KPIs for recruitment isn’t enough. It’s essential to be strategic to improve your metrics, so consider practicing these tips.
1. Regularly review and analyze metrics
Consistent reviews and revisions spot areas that need improvement. Periodically check your KPI data to identify trends and issues. Set clear goals for each metric, such as wanting to speed up your hiring process. For example, if you’re looking to reduce time-to-hire, focus on eliminating delays to enhance efficiency.
2. Take into consideration feedback from candidates and hiring managers
Gather feedback through surveys or interviews to understand how candidates and HR view the process. Aligning your practices with their expectations and company needs could lead to better outcomes. For example, improving communication can boost your acceptance rate and NPS.
3. Align recruitment metrics with business goals
Recruitment KPIs should support your business goals, whether it’s growing a team or filling specialized roles. Need to increase the number of computer-literate hires? Consider using pre-employment tests. To improve retention, try to hire candidates with a stronger cultural fit and/or provide job previews so the candidate will understand what the job actually entails.
4. Establish clear KPI definitions and benchmarks
Everyone in the recruitment team should understand what every KPI means and how to measure it. For example, cost per hire should include all stages and expenses, whether minimal. Also, regularly compare your performance with competitors to see where you stand.
5. Conduct post-hire evaluations
Check whether your new hires perform well and fit into the company culture. Doing so can help you evaluate KPIs like quality of hire and turnover rate. You could also have managers give feedback on new hires to see if they meet performance expectations.
6. Review job descriptions
Verify that your job descriptions are clear and concise and accurately describe the role and your company culture. If there are changes, remember to update them ASAP. These efforts will help attract the right talent and help you hire qualified candidates faster.
Strengthen Your Recruitment Processes!
Tracking recruitment KPIs is crucial to optimizing your hiring process. This helps you attract better candidates and supports your company’s long-term growth. In the end, you’ll create a stronger, more capable team that drives your organization to the next level.
Include a pre-employment assessment test to speed up hiring and improve the quality of your hires. We’ve got your back—EmployTest offers a variety of tests to help you find the right candidates.
Boost your hiring strategy with expert tips by reading our comprehensive planning guide today!