Does your team focus on the recruiting KPIs that really matter? Ignoring the most crucial metrics—or neglecting to track your recruitment process as a whole—is like recruiting with your eyes closed. Without a sense of your past and present success, it’s impossible to optimize your process with data-driven decisions and spot hiring issues.
But don’t stretch yourself thin by monitoring a laundry list of metrics. Track just a handful of recruiting KPIs and leverage the data to evaluate and refine your process and recruiting strategies.
Stuck on which metrics to choose? We recommend for teams to keep a close eye on the following crucial recruiting KPIs.
Failing to track your time-to-hire is practically a sin in the TA world. That’s why time-to-hire is one of the most common recruiting KPIs. It measures how long it takes your company to fill an open position. It’s a stellar KPI to use when measuring the efficiency of your hiring methods.
Teams with a low time-to-hire stand a better chance of transforming applicants into new hires in record time. Meanwhile, teams with a high time-to-hire risk losing star candidates to a lengthy process and a poor recruiting experience.
How Do I Measure Time-to-Hire?
Measuring time-to-hire is pretty simple. You just need to calculate the number of days from when an applicant enters your pipeline to when they accept your offer.
What’s a Good Time-to-Hire?
The average hiring process in the U.S. typically lasts for about 23.8 days. However, a “good” time-to-hire varies by factors such as industry and job function. A government role will likely take longer to fill than a role in a restaurant. But know this: candidates don’t want to wait around. With some companies snatching candidates up within 10 days, speed is the name of the game.
The shorter the hiring process, the better—as long as your process provides ample time for candidates to understand the role, and for recruiters to meaningfully connect with applicants. You need to balance speed with quality.
2. Quality of Hire
The challenge of every recruiter is to balance hiring fast with hiring the best candidates possible. That’s where quality of hire comes in. It measures the quality of your new hires and reveals if you succeeded in finding the right person for the role.
It’s one of the most important recruiting KPIs to track; our hiring research reveals that out of several popular metrics, quality of hire is the one that talent teams most commonly measure. Hiring high-quality new hires means that you carried out the recruitment process in an optimal fashion to achieve the ultimate goal: finding the person most suited for the position.
How Do I Measure Quality of Hire?
There’s no golden rule when it comes to measuring quality of hire. Your organization first needs to define what “quality” looks like in a new hire. This definition will be unique to what your organization wants to achieve with this new employee, and whether the employee attained this.
It’s wise to combine several factors to get a holistic view of the quality of each hire. For example, you could measure how well the employee exemplifies your organization’s core values, and/or how quickly and effectively they ramp up to fulfill the duties of their role.
What’s a Good Quality of Hire?
A “good” quality of hire can only be determined in the context of all your organization’s hires. Over time as you continue to measure quality of hire, you’ll be able to determine what caliber of performance makes a person a high-quality new hire and a low-quality new hire.
3. Candidate Net Promoter Score
A handy candidate net promoter score (CNPS) informs you about how candidates experienced your hiring process. A high CNPS shows that you excel at cultivating a process that cultivates a positive candidate experience and creates fans out of applicants. A low CNPS means bad news for your employer brand—and a likelihood that candidates will share their bad experience on company review websites.
By measuring your CNPS, you can get a leg up on the competition by understanding what candidates really think about your process. Then, use this data to identify what does and doesn’t work.
How Do I Measure Candidate Net Promoter Score?
Ask your candidates several candidate experience questions. For instance: “What is the likelihood that you would recommend us to friends or family as a place to work?” They’ll answer this question using a zero to 10 rating system.
Divide the responses into three categories: promoters, passives, and detractors. Candidates who respond with nine to 10 are promoters. They’re likely to recommend your company and are loyal. If a candidate responds with seven to eight, they’re passives. They feel neutral towards your company. Candidates responding with six or below are detractors. Don’t count on them to promote your brand.
To calculate your CNPS, subtract the percentage of detractors from the percentage of promoters.
What’s a Good Candidate Net Promoter Score?
Generally, scoring 10 to 30 is good, while a score close to 50 or above is excellent.
4. Offer Acceptance Rate
Your offer acceptance rate (OAR) is the percentage of candidates who accepted your job offer. A strong OAR means that your offer, hiring process, and company seem attractive to candidates.
Ended up with a high OAR? Pat yourself on the back; you’re a star at filling vacancies and connecting with candidates throughout their hiring journey. Disappointed with your low OAR? Time to spruce up the quality of your hiring process and the competitiveness of your offers.
How Do I Measure Offer Acceptance Rate?
Divide the number of offers accepted by the total number of offers extended. If you extend 100 offers and 50 are accepted, your offer acceptance rate is 50%.
What’s a Good Offer Acceptance Rate?
The average OAR is 65.7%. Use that as a benchmark when determining the quality of your organization’s OAR.
5. Career Page Conversion Rate
This metric refers to the number of visitors on your career page who went through the application process to become applicants. If you value a steady flow of applicants, the career page conversion rate is crucial. It informs you on how effective your career page is and what changes should be made to ensure that you’re never scrambling to find viable new hires.
Your career page should speak to your mission, values, and company culture. Think of it like a window into your organization. The page should be compelling enough that people are able to envision themselves working at your company. If your conversion rate is low, you have some work to do to optimize your page.
How Do I Measure Career Page Conversion Rate?
Take the number of applicants and divide it by the number of site visitors. If you have 25 applicants and 100 visitors, your career page has a conversion rate of 25%.
What’s a Good Career Page Conversion Rate?
A conversion rate of 11% or higher is great. If your conversion rate is lower, analyze how you can let the most captivating parts of your employer brand shine through.
6. Interviews With DEIB Exposure
Want to elevate your OAR and CNPS in one fell swoop? Assemble interview panels that champion DEIB.
“Interviews with DEIB exposure” refers to interviews that feature interviewers from a diversity of perspectives and backgrounds. The goal is to avoid crafting homogenous interview panels.
Diverse hiring starts with diverse panels. Interviews with DEIB exposure promote better decision-making and mitigate unconscious bias.
Not only that, but a DEIB-centered interview panel promotes a better experience in the hiring process. About 80% of Black, Hispanic, and LGBTQ candidates report that a diverse workplace is a crucial factor when considering job offers. With increased DEIB exposure in the interviewing stage, underrepresented candidates will feel at ease knowing that your organization celebrates different backgrounds—including their own.
How Do I Measure Interviews With DEIB Exposure?
Measure this KPI by taking the number of interviews with DEIB exposure and dividing it by the total number of interviews.
What’s a Good Level of DEIB Exposure?
There is no “right” level of DEIB exposure in interviews. The goal is to present candidates with panels that help them comfortably and confidently picture themselves working at your organization. If your diversity hiring goals falter, the DEIB exposure in your interviews likely needs improvement.
Boost Your Recruiting KPIs With Tech
Your hiring process and your talent pipeline won’t improve if you don’t measure them. For now, data-driven recruiting is seen as an approach to recruiting, but let’s be real: all recruiting should be data-driven.
If you want to make your recruitment process data-driven and connect with candidates like never before, using just your ATS simply won’t cut it. But you know what will? Leveraging GoodTime Hire.
Hire delivers an unparalleled mountain of insights to make your hiring process top-tier. Gain access to robust recruiting and interview dashboards to understand the status of your teams and track the progress of open roles.
Learn more about how Hire’s interview scheduling software can transform your talent acquisition process today.