When thinking about recruiting, it’s important to consider recruitment analytics as it forces you to think about what really matters – the recruiting KPIs that you need to track and measure that uncover the dollar impact or Return On Investment (ROI).

There is nothing more important than demonstrating the (dollar) impact of your recruitment actions. The 3 most important aspects that really matter to your business and have the biggest impact are quality, speed, and costs.

Let’s dive right in!

  1. Quality of Hire: There are many metrics related to the quality of hire. Is your new hire evaluated as a top performer? Great! But be careful to interpret this data as it cannot be seen in isolation. If a candidate is a top performer, has low retention, and is an ambassador for your organization, the ROI of this hire will be high. However, if a top performer stays for only a few months, the end result (ROI) is poor. Recruitment analytics, big data, and predictive analyses can provide great insight into what it takes to hire top performers.
  2. Delivering on Recruiting (speed of hire): There is a strong correlation between speed, quality, and costs in recruiting. A faster hiring process will result in higher quality candidates at (often) lower costs. And the cost of an empty seat can be high, especially in business-critical positions. Better-performing organizations move 1.6 times faster from the unofficial opening of a position to approving that position.
  3. Benchmarking Out-of-Pocket Recruiting Costs: Relatively easy to measure and, if benchmarked against direct competitors, gives an indication of the performance of high-quality and low-cost sources such as employee referrals, internal promotions, and direct sourcing. But, the cost-per-hire or the performance of low-cost high-quality sources cannot be seen in isolation. For example: if your competitor hires 60% via employee referrals and your organization 30% (which is pretty good), your competitor is more likely to be a ‘magnet’ for talent.

In short, everything you can measure is, or should, be related to ROI and provide insight into how quality, speed, and costs (or yield) can be improved!