Key Metrics or KPIs for the Evaluation of Recruitment and Recruitment Strategies

KPIs are essential metrics to evaluate the effectiveness of recruitment and recruitment strategies in an organization, since they help to improve the process. of hiring, to optimize the use of resources, favoring the attraction and retention of talent, therefore, they favor the achievement of the objectives of the organization.

the metrics KPIs, which is the acronym for Key Performance Indicators o Key Performance Indicators, are quantitative measures that companies use to assess effectiveness and performanceof its operations,in this case, the selection and hiring of personnel.

Well, the selection and hiring process is a key starting point for labor relations between employees and employers, therefore, the application of indicators is a very useful tool that allows talent recruiters to measure and analyze the effectiveness of their selection and hiring strategies.

Well, their strategies have a great impact on job performance and, of course, on the productivity of the company.

Let's see which are the most common and how to apply them.

Selection and recruitment strategies are essential to the success of any organizationSome of the KPI indicators that can be used to assess the effectiveness of these strategies are:

Time to Hire KPI

The time-to-hire KPI is used to assess the efficiency and speed of the recruitment process; This is a measure of the time from when a hiring need is identified (for example, an open position) until a candidate accepts the job offer.

Steps to apply this KPI:

1. Defines the measurement period: Time to hire can be measured from the time a job ad is posted until a candidate accepts an offer, or it can be measured from the moment a vacancy is identified until a new employee begins to apply. work.
2. collect the data: Record the date a vacancy is identified and the date a candidate accepts an offer, it is important to do so with each hiring.
3. Calculate the time to hire: For each hiring, the number of days is calculated between the date of identification of the vacancy and the acceptance of the offer by the candidate, then an average is made for all the contracts.
4. Monitor the KPI over time: These data are recorded and the time for contracting is calculated on a regular basis (for example, monthly or quarterly), you should look at how the KPI changes over time and if there are any noticeable trends.
5. Use the KPI to improve the hiring process: If the time for contracting is longer than convenient, the possible causes should be investigated. For example, it could be that the interview process is very long, that the hiring decision take too long, or that candidates are taking a long time to respond to job offers job. This information can be used to improve the hiring process and shorten the time to hire.

Candidate satisfaction KPI indicator

Candidate satisfaction is a KPI key performance indicator that measures how satisfied candidates are with the recruitment and selection process; A high level of candidate satisfaction can enhance your organization's employer brand and increase your offer acceptance rate.

Steps to apply this KPI:

1. Candidate satisfaction surveys: The most common way to measure candidate satisfaction is through satisfaction surveys; these surveys can be conducted after each stage of the recruitment process (for example, after the initial interview, after the final interview, after the job offer, etc.). Surveys should focus on aspects such as the clarity of the job description, the speed of the process, the courtesy of the recruiter, the effectiveness of communication, among others.
2. Calculate the average satisfaction score: For each satisfaction survey that a candidate completes, the average satisfaction score is calculated. This will give an idea of ​​how satisfied the candidate is with each stage of the recruitment process.
3. Calculate survey response rate: Divide the number of surveys completed by the number of surveys sent and multiply by 100 to get the survey response rate in percentage. A high response rate can be a sign that candidates are engaged in the recruiting process.
4. Analyze open comments: Many candidate satisfaction surveys include an open comments section where candidates can provide more details about their experience. It is important to analyze this feedback to get deeper insights into what is working well and what could be improved.
5. Use the results to make improvements: Use survey results to identify areas for improvement in the recruitment process. For example, if candidates consistently report that the recruiting process is too slow, you might look for ways to speed up the process.

Cost of Hiring KPI

The Cost of Hire KPI is a measure of how much it costs the company, on average, to hire a new employee; This cost can include various items, such as advertising costs, recruiting staff hours, candidate testing costs, and more. Here's how you can apply this KPI:

1. Define included costs: The first step is to define which costs will be included in the KPI; this may include direct costs such as recruitment agency fees, the costs of advertising, candidate testing fees, and the costs of verifications of background. It can also include indirect costs such as time recruiters spend reviewing resumes, interviewing candidates, and making offers.
2. collect the data: Once it has been defined which costs to include, these data should be collected; this may involve collecting invoices, estimating time spent on various contracting tasks, and collecting other relevant data.
3. Calculate the cost of hiring: Add up all the costs that have been identified for each hire, and then divide that sum by the total number of hires to get the average cost of hiring.
4. Monitor the KPI over time: You should keep track of this KPI and monitor how it changes over time; if recruitment costs are increasing, the recruitment process may need to be reviewed and ways to make it more efficient.
5. Use the KPI to improve the hiring process: Use the information you've collected to find ways to reduce hiring costs without compromising the quality of the candidates you're hiring. This may involve negotiating better rates with recruitment agencies, improving the branding of the employer to reduce advertising costs, or make the hiring process more efficient.

Hiring Diversity KPI

The hiring diversity is a KPI indicator that measures how well the company is doing in terms of hiring people of different backgrounds or characteristics.

Steps to apply this KPI:

1. Define which aspects of diversity are most important to the organization: This can include gender, age, ethnicity, national origin, sexual orientation, disability, among others.
2. collect the data: During the hiring process, the necessary data must be collected to measure diversity, it is important to do so legally and ethically, respecting privacy and anti-discrimination laws.
3. Calculate diversity ratios: These ratios can be calculated as the number of employees in a demographic group divided by the total number of employees. For example, if the company has 50 employees and 20 are women, then its gender diversity ratio is 20/50 or 40%.
4. Compare to ideal diversity ratios or industry averages: This can help you understand if the company is meeting its diversity goals.
5. Monitor change over time: Hiring diversity is not a KPI that needs to be measured just once, it needs to be monitored throughout over time to see if progress is being made toward achieving the objectives of diversity.

It is important to note that just as diversity is important, so is inclusion; It is not enough to just hire people of different characteristics; You also need to ensure that all employees feel valued, respected, and capable of reaching their full potential.

Employee turnover KPI indicator

The rate of employee turnover, is a very useful KPI for measure how many employees leave the organization in a given period of time; This metric is essential to understanding the effectiveness of the organization's employee retention and recruitment efforts.

Steps of how this KPI can be applied:

1. Define the time period: The employee turnover rate is normally measured on an annual basis, but can also be measured on a quarterly or monthly basis.
2. collect the data: It is necessary to know the total number of employees at the beginning of the time period, the number of employees at the end of the period and the number of employees who left the organization during that period. period.
3. Calculate the employee turnover rate: The basic formula to calculate the employee turnover rate is: (Number of employees who left the organization during the period / Average number of employees during the period) * 100. The average number of employees can be calculated by adding the number of employees at the beginning of the period and the number at the end, and then dividing by two.
4. Monitor the KPI over time: Keep track of this KPI and monitor how it changes over time; An increase in the employee turnover rate may indicate problems with employee retention or hiring strategies.
5. Use the KPI to improve employee retention: If the employee turnover rate is high, investigate possible causes; this may involve exit surveys for departing employees, interviews with current employees, or review other factors such as compensation, working conditions, work-life balance, etc.

KPI indicator of offer acceptance

The offer acceptance indicator is a KPI that measures the effectiveness of a company in convincing candidates to accept job offers. This KPI can be useful in understanding how attractive the company's job offers are and how effective its negotiation tactics are.

Steps to apply this KPI:

1. collect the data: You need to know how many job offers have been made during a certain period of time and how many of these offers have been accepted.
2. Calculate the offer acceptance indicator: The basic formula to calculate the offer acceptance indicator is: (Number of accepted offers / Total number of offers made) * 100. This will give a percentage that can be used to compare with other time periods or with other companies.
3. Monitor the KPI over time: Record this KPI and monitor how it changes over time, if the offer acceptance indicator is declining, it may be a sign that job offers are not competitive or that the negotiation process is not It is effective.
4. Use the KPI to improve job offers and negotiation tactics: If the offer acceptance indicator is lower than you would like, you should investigate possible causes. This may involve reviewing the compensation offered, benefits, company culture, negotiation tactics and other factors that may influence a candidate's decision to accept a offer.