Recruitment Key Performance Indicators (KPIs)

Recruitment Key Performance Indicators (KPIs)

 

Key Performance Indicators (KPIs) refer to quantifiable performance measurement that organizations use to measure the key tasks that impact a company’s success. Recruitment KPIs are designed to specifically measure the effectiveness of a recruiter, recruiting team, or recruitment strategy. 

 

Recruitment KPIs can reveal areas of opportunity or improvement, and the metrics can demonstrate the return on investment (ROI) and value of recruiting efforts. Some of the traditional HR performance metrics are used for recruiting KPIs, along with KPIs unique to recruiting. These KPIs are most commonly used to measure recruitment performance:

 

• Application completion rate

• Qualified candidates per open position

• Time to fill

• Time to hire

• Submit-to-interview ratio

• Source of hire

• Source quality

• Cost per hire

• Quality of hire

• Offer acceptance rate

• Interviews to hire

• First-year turnover rate

• Candidate satisfaction

• Hiring manager satisfaction

 

When a company tracks recruitment KPIs, managers and the recruitment team can glean valuable insights into their recruitment process, which will help them make data-driven decisions that impact hiring results. 

 

Examples: 

 

Suppose a company is struggling to source qualified candidates. The issue may lie with job postings that aren’t robust enough. Perhaps the job postings lack precise responsibilities or detailed job descriptions. This problem may also imply that job postings don’t have optimal placement on job boards frequented by the most qualified targeted applicants in the organization’s niche. In this scenario, the qualified candidates per open position KPI comes into play. 

 

Another example is abandoned applications. If a company’s application completion rate KPI indicates that application abandonment is high, it may be essential to examine the application process to see if it is too confusing or cumbersome.