What Are the Most Important Recruitment KPIs? Here Are 9 of Them

the most 9 important recruitment kpis you should be measuring

Not all candidates who apply to your job are of the same caliber, have the same skills, or are beneficial to your company. So, how do you know if you’re hiring well? It’s using recruitment KPIs and metrics.

Recruitment key performance indicators (KPIs) measure the impact and strength of your company’s hiring and interview process. They also show you where you need to improve, whether candidates are struggling, or if you have unrealistic expectations.

In this article, we’re looking at the most important recruitment KPIs and metrics for businesses today.

What are recruitment KPIs?

what are recruitment KPI?

What are recruitment KPIs?

Recruitment KPIs, or recruiting KPIs, are key performance indicators that show you whether you’re achieving your hiring goals or not.

Hiring is a process. It takes time, effort, money, and sometimes training.

But what if there are gaps in your recruitment process? What if the candidate you’re hiring leave after a few months?

What if your hiring process is so long, it hurts your teams’ and company’s productivity and revenues?

What if there’s a problem? How do you know where this problem is in your recruitment cycle?

 

Using hiring KPIs and metrics, you can see the effectiveness of your hiring strategy and identify any gaps or weaknesses.

 

Why do recruitment KPIs matter?

Key performance indicators for recruitment are essential when evaluating the performance of your HR team, whether in-house or outsourced.

You should review your recruitment KPIs and metrics when evaluating your HR team.

Using recruiting KPIs and metrics you can measure the success of:

  • The entire hiring process
  • The interviews or interviewing process
  • Finding the most suitable candidates for your open vacancies

By using and measuring metrics for your recruitment you can:

  • Identify areas of weakness
  • Evaluate your hiring process and change what you need
  • Create a better work environment
  • Retain talented employees for longer

Among other benefits.

What are the most important recruiting KPIs?

9 recruiting KPIs and metrics

The 9 Most Important Recruiting KPIs

In HR, there are many recruiting KPIs. That’s because recruitment is closely connected to employee retention, employee engagement, business growth, and more.

Let’s look at the most important recruiting KPIs that you should be measuring–regularly!

Here are 9 recruiting KPIs and metrics you need to know.

1)  Quality of hire 

The Society for Human Resource Management (SHRM) describes the quality of hire KPI as “the holy grail of recruiting.”

And yet, many employers and HR employees overlook this important recruitment and HR KPI.

You can review hundreds, even thousands, of resumes to hire one person. However, not all candidates applying for a role are of the same quality.

The quality-of-hire entails recruiting metric entails

1) The level of compatibility between the candidate’s experiences and skills and the position you’re trying to fill.

2) The quality they bring to your company.

Reviewing 1,000 resumes for candidates who don’t fit your role means you’re looking at low-quality hires. These are people who will struggle to fulfill their duties in your company. They’re also likely to hinder your company’s growth.

 2)  Time-to-hire 

Two related metrics are the time-to-hire and time-to-fill metrics.

The time-to-hire metric measures the average amount of time a potential candidate begins engaging with your company and vacancy till they’re sent an offer, and they accept that job offer.

HR companies and agencies like Tawzef use the ‘time-to-hire’ metric to evaluate the efficiency of their talent acquisition process.

If it takes your team(s) a long time to hire an employee, then there might be problems worth exploring.

Is the job description too vague? Or too much for one employee? Is your HR team reviewing resumes for quality hires?

 3)  Time to fill

The other recruitment KPI is the time-to-fill indicator, which begins when your company lists a vacancy. It ends when your company finds a suitable candidate and closes the position.

4)  Cost per hire

The cost per hire (CPH) is one of your most important HR KPIs and metrics because it involves money.

The CPH measures the average amount of money your company spends to hire a new employee. The cost per hire may differ based on the level of seniority of the role you’re trying to fill and in which department.

The CPH for a sales manager will be higher than that of a junior social media specialist. However, it’s important to measure the cost per hire in your company to review the effectiveness of:

  • Your HR or talent acquisition team
  • The hiring process
  • Your overall compensation and benefits offering

 5)  Rate of attrition

The rate of attrition, also known as the rate of employee turnover, is an important HR and recruiting metric. Companies often forget that filling a vacant position doesn’t mean that the hiring process is over.

It’s important to see how long new employees stay with your company and calculate the rate and cost of employee turnover.

While there are many factors that impact employee turnover, calculating the cost of turnover can give you an idea on how much you’re spending on the hiring process and new hires. It can provide you with insights on areas you may need to improve such as:

Among other areas.

And when you calculate the rate of attrition, it’s important you calculate first-year attrition.

 6)  Source of your hires

Where you’re getting applicants for open jobs is an important recruitment metric known as ‘source of hire(s).’ You should especially know where you best hires are coming from.

When you have a job opportunity, you spread it around. You publish it on:

  • Social media
  • Your website
  • Hiring websites and job boards
  • You may ask your current employees–and sometimes former employees–for referrals
  • You may work with recruitment agencies like Tawzef to find suitable candidates for you

This recruitment metric helps you see:

  1. Where your best employees are coming from
  2. Which options are the most affordable
  3. Which sites send you less qualified candidates

 

Keeping an eye on your source-of-hire KPI shows you the best channels to invest in, and which to skip or drop.

 

Recruitment KPIs and metrics for experience and satisfaction

The recruitment process isn’t all about hiring-related metrics. It includes several internal or post-hiring KPIs that look at the hiring experience and the level of satisfaction associated with that experience.

Here are 3 more recruitment KPIs and metrics that are rarely considered as part of the hiring process but are just as important.

 

 7)  Candidate experience 

We don’t talk about the candidate’s experience in the Middle East, but we should. It’s an important recruitment KPI because it looks at your employment process as a whole.

To measure this recruitment metric, you’ll need a candidate experience survey, which uses a Net Promoter Score (NPS). It determines the candidate’s satisfaction with different stages of the hiring process and shows you areas you can improve.

We recommend using the candidate experience survey with candidates you hire and those you don’t hire.

8)  Candidate-job satisfaction rate 

This recruiting metric looks at whether the candidate found hiring expectations in line with the job they filled or not. It helps businesses and HR ensure that job descriptions are clear and complete.

It also makes sure the candidate found the job similar to what they read in your job posting and what was discussed during their job interview.

9)  Hiring manager satisfaction

This is a recruitment metric that looks at how satisfied the hiring manager is with their new hires. This can be done one-to-two months after hiring.

We recommend making this evaluation during the new employee’s probation period.

“When the hiring manager is satisfied with the new employees in their team, the candidate is likely to perform well and fit well in the team. In other words, the candidate is more likely to be a successful hire.”Academy to Innovate HR

 

Manage recruitment KPIs better with Tawzef

manage recruitment kpis better with Tawzef

Manage recruitment KPIs better with Tawzef

Improving any of these recruitment KPIs and metrics can have tremendous benefits for your company. They can improve your overall hiring process, help you hire faster, and boost satisfaction for both candidates and hiring managers.

Creating and measuring recruiting metrics can help you avoid the common mistakes employers make and improve your employee retention metrics. They can also support your employee retention efforts.

But what if you don’t know which recruitment metrics aren’t performing? Where do you start when measuring these recruitment KPIs? Who is qualified to evaluate the strengths and weaknesses in your recruitment process?

 

Sometimes, it’s a good idea to get an outside eye, external expertise that can support your hiring needs and help you improve.

As an HR consultancy with over a decade of experience hiring candidates in Egypt and the Middle East, Tawzef helps companies with both their HR needs and hiring needs.

Tawzef supports companies by:

and more.

All of these services and more are designed to ensure your hiring and business needs are in line.

 

So, if you need help creating recruiting KPIs and metrics for your company, or if you need help managing the entire process and finding the right candidates, get in touch with Tawzef. Our team of experts will help you with all your business and HR needs.

 

 

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