newton software recruiting metrics

What Are Recruiting Metrics?

Recruiting metrics, like time-to-hire, time between stages and recruitment velocity are valuable tools for measuring the effectiveness of your company’s hiring practices. These metrics help clarify where the company’s recruitment plan is succeeding, and where it’s coming up short.

Once the difficult task of putting together a recruitment plan is finished and put into practice, you’re going to want a reliable method for measuring the plan’s effectiveness. By measuring the performance of your recruitment process, you’ll be able to determine where improvements can be made. This is where recruitment metrics come into play.However, knowing where to get started with metrics can be difficult. Since there are no limitations on how many metrics you can track, the temptation for many hiring managers is to simply track them all. This can result in too much data being recorded and being unable to use that data effectively.In this article we will discuss what some of the top recruiting metrics are, what they are used for and how you can analyze your data effectively to maximize success.

Here is a comprehensive list of recruiting metrics that can be used:

  • Average Time-to-Hire
  • Applicants Per Hire
  • Candidate Source Summary
  • Stage-to-Stage Recruiting Velocity
  • Current Candidate Pipeline Reports
  • Funnel Breakdowns
  • Reasons for Non-Selection
  • Retention and First-year Attrition
  • Net Company Growth
  • Social Engagement

What Are They Used For?

Recruitment metrics are designed to measure the performance of a hiring effort at every stage of the process.

Just like professional sporting teams pay close attention to where they’re locating and recruiting new talent, companies can also track and measure the performance of candidates who originate from a specific recruiting channel or recruitment agency.

This metric, known as Candidate Source Summary, is one of the most important recruitment metrics that a company can track, as it can provide companies with a good idea of what sources the best candidates come from.

A recruitment marketing mentality is something more and more recruiters need to have in modern recruiting, as hiring for open roles is not unlike marketing to find new customers for your business. Professionals in the recruitment industry can leverage the enormous amount of data at their fingertips.

By efficiently gathering and analyzing data on some or all of the metrics outlined above, you can vastly increase the effectiveness of your recruitment efforts and hire better candidates faster.

Best Recruiting Metrics

For most companies, determining the hierarchy of the recruiting metrics is a matter of opinion and circumstance.

Since not all companies have the same hiring needs, some metrics will inevitably end up being more important to some companies, and less important to others.

For example, with industries that have seasonal hiring needs, like a retail store during the holidays, Average Time-to-Hire, Stage-to-Stage Recruiting Velocity, and Applicants per Hire might be some of the most important metrics to measure.

These types of industries require a “bulk” number of applicants to fill the hiring need, and since the need is based on a seasonal influx of shoppers, time is of the essence. This means that the job listing, and other recruiting methods like recruitment outsourcing will have to be examined closely to ensure that they’re bringing in applicants quickly.

On the other hand, if your company has long-term goals to expand and wants to increase employee retention, then the recruitment metrics that might be most important might be Net Company Growth, Retention, and First-year attrition.

When it comes to picking the “best” recruiting metrics, it is wise to look at what you are trying to accomplish as an organization and pick the metrics that fit that goal. Not every company is going to need to track every metric, and doing so can cause more harm than good by over complicating something that is supposed to save you time not put more work on your plate.

Analyzing Your Metrics

The process of analyzing a recruitment metric is the process of uncovering the “why” behind the number. Using the above example for retail stores that require seasonal workers, if the Average Time-to-Hire has increased year over year, then the goal should be understanding why this is the case.

As it turns out, looking deeper into this specific metric might reveal a whole host of reasons as to why the Average Time-to-Hire metric has increased. Perhaps it is due to ineffective candidate sourcing—it may be the case that the usual manner in which the candidate pool is sourced is no longer working as intended, and the company should start looking at other sources to fill its pipeline.

Take a look at the goals you have for your company’s recruitment efforts and and find ways to analyze the results accordingly. As we touched on earlier, the last thing you want to do is have the mass amount of data make your days more stressful instead of filled with recruitment bliss.

None of this data will matter if you can’t organize and understand it. Developing a process to do this can be a long and arduous task, especially if you are doing it from scratch.

As former recruiters, our founders here at Newton knew the struggles of tracking and improving upon recruitment performance firsthand. This is why they developed what we now dub our “Ultimate Recruiting Metrics Spreadsheet”. The KPIs tracked by this spreadsheet include:

  • Average Time-to-Hire
  • Candidate Source Summary
  • Stage-Stage Recruiting Velocity
  • Current Candidate Pipeline Reports
  • Funnel Breakdowns
  • Reasons for Non-Selection

Of course, Newton’s ATS has all of the functionality and more built right into the platform, but if you aren’t currently looking for an ATS or are wanting to add on functionality to existing recruitment software, download our Ultimate Recruiting Metrics Spreadsheet and start tracking some of the most important metrics in recruiting for your business.

GET THE SPREADSHEET

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