These 7 Recruitment Metrics You Can't Afford Not to Measure

Recruitment strategy and management indicators are the decisive factors for a company's competitiveness. Regularly monitoring recruitment management indicators helps business owners and HR recruitment managers not only continuously improve recruitment plans but also save costs in managing operations.

This article by Aniday focuses on 7 important indicators that support the HR department and unit managers in assessing recruitment performance and ensuring they are aligned with the company's strategy. This helps them effectively measure recruitment activities through numerical data, percentages, trends, or comparative charts. This information not only supports performance evaluation but also helps stakeholders within the organization gain a better understanding and propose support for the organization's future development. Let's explore together with Aniday!

1. Recruitment Costs

Recruitment costs encompass several important factors that are closely related to the hiring process. Firstly, there are advertising expenses for posting positions on recruitment websites such as LinkedIn Talent Solutions, Aniday, and other services.

Secondly, recruitment costs also include the time and effort of the recruitment team and labor managers, from the onboarding process to candidate interviews. Lastly, these costs also encompass investments in company introduction workshops, school recruitment fairs, training for new employees, and the purchase of necessary equipment to help them adapt well to the new work environment.

2. Quality of Recruitment Channels

Businesses evaluate candidates from various recruitment sources such as LinkedIn, Aniday, Indeed, or from sources like the company's official website, headhunters, school recruitment, internal referrals, or recommendations from directors. Recruiters determine which source brings the highest quality candidates and which source has lower quality. You want to identify which source can provide important talent for the digital transformation of the business in the future.

Measuring the quality of each recruitment source helps businesses have a clearer view of where to allocate resources. This helps prevent resource waste on sources that are not suitable for the business while optimizing the speed and quality of the recruitment process. You can combine source categorization with origin analysis and conversion rates at each stage of the recruitment process and use a funnel chart to assist the HR department in improving the recruitment management process.

3.Number of Qualified Candidates

The presence of insufficiently qualified applicants can be a sign of issues in the recruitment process, stemming from limited talent supply, unclear or unappealing job descriptions, or a scarcity of professional talent in the labor market.

Based on data, you can apply adjustment strategies by utilizing talent referrals or revisiting the recruitment strategy, modifying job descriptions and company branding to attract candidates. You can also consider enhancing outreach through a focused job advertising or expanding job options to increase the number of applicants.

4. Evaluation Round Pass Rate

Designing an effective recruitment process primarily prioritizes helping HR partners or personnel managers find the most suitable candidates for the positions while managing the number of resumes, valid profiles, interviews, job offers, and the number of new hires.

This process takes into account multiple evaluation factors, including productivity during the probationary period, fit with the organizational team's working culture, and the satisfaction level of HR managers with new candidates. While these insights are difficult to predict before candidates join the work, if managers can integrate this feedback into the continuous improvement of the recruitment process, it will increase the likelihood of finding employees suitable for the business in the future.

5. Recruitment Time

This refers to the average duration from when a job position is opened to when the employee starts working. If managers have a clear understanding of the average time required for recruitment and onboarding, they can effectively plan team reinforcement and departmental budgets towards the end of the year. This helps them estimate more accurately the necessary resources and time. Additionally, many businesses in Vietnam face difficulties in recruiting key positions or longer-tenured managers. In such cases, talent activation plans, especially for managers or experienced employees, are considered a useful measure to drive organizational change and effectively address the issue of talent shortage.

6. Offer Acceptance Rate

When you have gone through the process of searching, filtering, and interviewing qualified candidates, along with sending them job offers, there is a possibility that the selected candidates may reject these offers due to better conditions offered by other companies, factors related to personal development, or even the inability to start on the agreed-upon date. If the acceptance rate is lower than the industry standard, it may indicate that the business has issues in the recruitment management process or in quantifying salaries and benefits.

7. First-Year Attrition Rate

The attrition rate equates to a significant increase in recruitment costs for businesses. It can reflect employee dissatisfaction with the job, organizational culture, or direct management. In cases of high attrition rates, HR and the business need to examine the recruitment and onboarding process, as well as labor management methods. Feedback from current and former employees is a valuable source of information that helps businesses reduce recruitment costs, enhance satisfaction, and improve labor productivity. This indicator is an important assessment of human resource development, especially when businesses are continuously hiring, but high attrition rates can impact the ability to develop talent and train a close-knit workforce.

Aniday emphasizes that recruitment management metrics need to be flexible according to the industry, company scale, and market position. They also need to be adjusted based on the organization's changes and development. Therefore, the selection of KPI indicators must correspond to the business strategy, where the indicators serve not only as measurement tools but also as guides in shaping goals and development plans for the company.

We hope this Aniday article has been helpful to you!