U.S. unemployment is at a 50-year low, meaning there are more open roles than available, qualified talent to fill them. Because of this tight labor market, your team needs to be more strategic than ever before when it comes to measuring and improving your hiring efforts.
Many employers don’t have a standardized hiring process in place and, as a result, have no way of knowing whether or not their hiring efforts are working – and what needs to be improved. With the right recruitment and hiring partner, you can follow a repeatable, streamlined process and have access to hiring metrics that can help you drive hiring efficiencies.
All Hireology customers have access to our Insights solution, which provides actionable, Q&A analytics to measure hiring health. With Insights, business owners and HR leaders can gain visibility into hiring performance across locations and managers, and compare results to peers using industry-specific benchmarks. Below, we’ve outlined several key hiring metrics Insights measures – and why your team should be tracking this data and taking action based on the results.
1. Time to Hire (Hiring Velocity) – How Fast Am I Hiring?
The longer a position goes unfilled, the more productivity is disrupted as employees spend time covering for the open role. In fact, Hireology daya found that businesses lose an average of $1,000 in gross profit for each day a role is open. Put into perspective, when a dealership has an open technician role, fewer vehicles are serviced. And when a home care agency has an open caregiver role, fewer patients are seen, leading to lost profitability.
In addition to lost productivity, the longer the hiring process, the higher the risk of losing quality candidates to competing job offers. Hireology research shows that given the competitive hiring market, applicants who are reviewed and acted upon within 12 hours are the most likely to be hired.
To speed up your time to hire, (hiring velocity), your team needs to tap into the right hiring metrics. Otherwise, you likely will not have an understanding of what is causing hold ups in the hiring process. For example, it might take days or weeks for your hiring managers to review applicants, but if you’re not measuring this data, you’ll have no way of knowing why you’re losing candidates during the hiring process – and no way of improving, as you can’t manage what you don’t measure.
Hireology’s Velocity Insight helps measure and improve time to hire with a clear understanding of applicants reviewed, time to review, and average time spent in each hiring step. Hiring Velocity identifies bottlenecks in the hiring process, helps employers decrease time to hire and increases the chance of engaging – and hiring – quality talent before the competition.
2. Process Adherence – Am I Following My Hiring Process?
Once you have a hiring process in place, it’s important for all your locations and managers are following this process. Following every step of the hiring process each time you make a hire will ensure you don’t overlook quality candidates, hire the best fits for your open roles and maintain compliance. On the other hand, skipping steps in the hiring process poses as risk for making a bad hire.
To ensure your team follows the hiring process in place, you can tap into hiring metrics related to process adherence. Hireology’s Adherence Insight drives team accountability to follow an impactful, legally-compliant hiring process.
This Insight enables you to gain visibility into your hiring process health and pinpoint where critical hiring steps are followed or missed for specific candidates and roles, with transparency into: percentage of hiring steps completed, percentage of hires who completed all steps and percentage of candidates with skipped steps.
You can use the data to drive conversations between managers and team members to ensure all applicants are reviewed and proven process steps are followed. For example, if a certain hiring manager tends to skip background or reference checks to speed up the process, you can sit this manager down and let them know why candidate verifications – and following all hiring steps – is important.
3. Recruitment Marketing ROI – What is My Best Source of Applicants?
Your team likely knows, in great detail, which lead sources convert to new business on a daily basis. This same level of attention and data-based decision making should be applied to the most critical component of your organization – hiring quality people. But many employers simply invest in one-off job boards and other applicant channels without measuring whether or not they’re actually driving quality applicants and eventual hires.
Hireology’s Sourcing Insight answers the question, “What is my best source of applicants?” and provides clear visibility into the total number of applicants, quality candidates and hires by source. The Insight further provides central visibility into sponsored job board performance, including total sponsored posts purchased, dollars spent, quality applicants sourced, and average cost per quality applicant.
Applicant channels that deliver a high quantity of poor applicants will only waste your team’s time and recruitment budget. By leveraging Hireology’s Sourcing Insight, you can improve the return-on-investment for your recruitment budget by vendor or channel, ensure quality hires are being made, and save time and money.
In addition to the Sourcing Insight, Hireology also has a Career Site ROI Insight, which provides visibility into career site performance, including subscription cost, number of applicants, number of quality applicants and cost per quality applicant. Career sites drive 30 percent of eventual hires, the highest percentage of all applicant sources, so it’s important to ensure your career site is driving the results your team needs – and the Career Site ROI Insight can help you measure results and key steps for improvement.
Understanding key hiring metrics and taking action to improve your overall hiring process will help you stand out from competing employers and secure top talent in today’s competitive hiring market. For additional information on how you can embrace data to drive hiring results on your team, schedule a free consultation today.