Hiring process is an essential part of a company to be able to find the most suitable candidate for the vacant job position in the company. However the process requires high amount of investment in terms of time, money and other company resources. A company should collect and analyse the data which will help you evaluate different steps in the hiring process and help you improve your hiring process.
Each company has its own hiring process but there are certain industry standards when it comes to hiring metrics which should be monitored by every company. Here are 5 of them.
Years ago job posting was limited to the newspapers ads, but today applicant’s have many different avenues to find a suitable job like online job boards, social media, online ad placement or referral programs and more. As there are many are many recruitment resources a company should track which resource brings in more candidate for the job opening and which resource is converting the most. For example, a source may be bringing more candidates but less are converting into the actual hire. On the other hand a resource may get less candidate but converting rate is high. Find the best resource and invest your money in that.
Time to hire
Time to hire is one of the important metrics which measures the time gap between a job position is available in your company till the day a person gets hired for it. This helps you understand the efficiency of your hiring process. Less time to fill a position is considered good for a company. An unfilled position in a company means other resources are being diverted until it’s filled. Statistically, it takes an average of 42 days to fill a vacancy. Watch your company time to hire metrics to make sure your company hires at the right speed.
Cost per hire
Every hiring costs something, it’s good to stay on the budget and monitor your expense on hiring. Cost per hire refers to the total cost spent to fill a vacant position in your company. It includes the cost of ad placement, recruiter feels, hiring tools and technologies used, travel expenses and much more. So if you are not tracking your companies cost per hire then you should get to your finance team and know your hiring cost.
Offer acceptance ratio
Any company in the world do not want to experience the moment when they have finally got the ideal candidate for a job, but the offer is rejected by the candidate it self. The rejection of offer can be due to many reasons,compensation is the most common one but there are other reasons such as negative interview experience, lengthy hiring process, unclear job expectations and more. Keep an eye on these issues and fix them, so that when you make an offer to an ideal candidate the person happily says yes to your offer.
Hiring process feedback
This is an important metric in your hiring process which is mostly overlooked by the companies. If your hiring process is poor rated then it can affect your whole company. Especially when a dissatisfied candidate takes it to the online platform. It can become a nightmare for the PR team and can also restrict new candidates to apply in future. One of the easiest way to improve your hiring process to get feedback from the once who have experienced it. You can simply do this by asking your candidates to fill a survey about the recruitment process. You will get to know how well the process works and what needs improvement.
Recruitment process is vital part of a company to get the right candidate to fill the vacant job position in the company. In order to learn the effectiveness of your hiring process it’s very important to monitor the key hiring metrics and make the necessary changes to improve the overall hiring process.