Five important metrics to watch in TA, and one to eliminate from your vocabulary.
In the dynamic landscape of talent acquisition, the ability to measure and optimize performance is essential for success. From attracting top-tier candidates to seamlessly integrating them into the organization, every step of the hiring process presents an opportunity for improvement. However, not all metrics are created equal. While some provide valuable insights into the efficiency and effectiveness of your recruitment efforts, others may lead you astray. I've outlined five key metrics to watch, and one we need to stop leveraging.
1. Time to Hire: The Gold Standard Metric ✅ ⭐️
Time to hire measures the number of days between a candidate's application submission and their disposition (hired/not hired). Unlike time to fill, which only accounts for the time it takes to fill a position regardless of candidate quality, time to hire considers the entire recruitment process, including screening, interviewing, and evaluating candidates thought the lens of quality. By focusing on time to hire, organizations gain a comprehensive understanding of their efficiency in securing top talent.
No matter what's happening in the labor market, speed is always critical. This metric is an excellent indicator how fast your company is moving candidates through your recruiting process; ultimately putting you in position to secure the best talent. It also can help TA teams illustrate areas of the business where recruiting processes are being unnecessarily protracted. The data helps guide conversations that can add efficiency to your process.
2. Quality of Hire: Beyond the Interview ✅
While quantity may be tempting, quality should always take precedence in talent acquisition. The quality of hire metric evaluates the performance and retention of new employees over time. By tracking this metric, organizations can assess the effectiveness of their hiring process in selecting candidates who not only meet the job requirements but also excel in their roles and contribute to the company's success.
In early-stage or smaller organizations this is often binary (are they still working here?) but as your People & Talent function matures you need to introduce a more sophisticated approach to measurement. Things like performance, engagement, and eNPS can all be used to better gauge quality of hire.
3. Source of Hire: Unveiling Recruitment Channels ✅
Understanding where your most successful hires come from is crucial for optimizing recruitment strategies. Source of hire metrics provide valuable insights into which channels—such as job boards, employee referrals, or social media platforms—are most effective in attracting top talent. By allocating resources to the most fruitful channels, organizations can maximize their recruitment ROI and streamline their hiring process.
Having a compelling way of measuring your Quality of Hire is critical to optimizing the actionability of your sourcing metrics. Source of Hire is also integral to understanding the performance of your organization's Diversity, Equity, and Inclusion efforts (this is a really important topic to consider, and we'll be releasing a blog on this topic within the coming weeks).
4. Candidate Satisfaction: A Window into Employer Branding ✅
In today's competitive job market, candidate experience plays a pivotal role in attracting and retaining top talent. Candidate satisfaction metrics, such as Net Promoter Score (NPS) or feedback surveys, allow organizations to gauge how candidates perceive their recruitment process. By addressing pain points and improving the candidate experience, companies can enhance their employer brand and position themselves as employers of choice.
5. Offer Acceptance Rate: Projecting Success ✅
Offer acceptance rate measures the percentage of job offers extended that are ultimately accepted by candidates. A low offer acceptance rate may indicate issues with aligning candidate and company expectations, compensation, company culture, or the overall candidate experience. By monitoring this metric, organizations can identify areas for improvement and tailor their offers to better align with candidates' expectations and preferences.
... and now the one metric we need to stop talking about in TA:
🛑 Time to Fill: Ineffective and Irrelevant! 🛑
Time to fill measures the amount of time between a job requisition being opened and a candidate accepting the offer. And, in my humble opinion, it's a joke. In a world where businesses are struggling to fill roles, and quality is (and always should be) the key driver in making a hire, why are we looking at how many days a requisition is open? Instead, monitor Time to Hire (above), which focuses on getting qualified candidates to the finish line quickly - measure speed & quality together.
While there are numerous metrics to track in talent acquisition, not all carry the same weight in assessing performance and driving improvement. Time to hire stands out as a superior metric, offering a holistic view of recruitment efficiency and candidate quality. By prioritizing metrics such as time to hire, quality of hire, source of hire, candidate satisfaction, and offer acceptance rate, organizations can optimize their talent acquisition efforts and gain a competitive edge in the talent market. Remember to "Measure what Matters" and focus your TA team and your hiring teams on the metrics you can action
to add efficiency and optimize your recruiting outcomes - it will always prove valuable.