Key Performance Indicators: Measuring Success in the Recruiting Process
February 17, 2023 · by Nils Caspar · 3 min read
The recruiting process can be a daunting task for many companies. It involves attracting top talent, assessing their fit for the role, and hiring the best candidate for the job. However, how do you know if you're doing a good job or not? This is where Key Performance Indicators (KPIs) come into play.
What are KPIs?
KPIs are measurable values that track the success of a company's goals and objectives. They are used to evaluate how effectively a company is achieving its desired outcomes. In the context of the recruiting process, KPIs can help companies track the success of their efforts to attract, engage, and hire top talent. By measuring KPIs, companies can identify where their recruitment process is working well and where there is room for improvement.
Why are KPIs important in the recruiting process?
KPIs are important in the recruiting process because they provide a way to measure the success of a company's hiring efforts. They help companies identify areas where they can improve and make data-driven decisions to achieve their hiring goals. Without KPIs, companies would have a harder time evaluating the success of their recruiting efforts and making data-driven decisions.
KPI #1: Time-to-hire
Time-to-hire measures the amount of time it takes to fill a role from start to finish. A long time-to-hire can indicate a slow or inefficient recruitment process, which can deter top candidates from pursuing opportunities with your company. To measure time-to-hire, start counting from the moment a job opening is approved to the time the candidate signs the offer letter.
KPI #2: Cost-per-hire
Cost-per-hire measures the cost of filling a role, including expenses such as advertising, recruiters' time, and relocation costs. By tracking this metric, companies can identify areas where they can reduce expenses and improve the cost-effectiveness of their recruitment process. To measure cost-per-hire, add up all the expenses associated with hiring and divide that by the number of hires made in a given time period.
KPI #3: Quality-of-hire
Quality-of-hire measures the effectiveness of the recruitment process in attracting and hiring top-quality candidates. This can be evaluated by factors such as job performance, retention rates, and customer satisfaction. To measure quality-of-hire, evaluate the performance of new hires in the role and compare it with the performance of existing employees in similar roles.
KPI #4: Applicant-to-hire ratio
Applicant-to-hire ratio measures the ratio of applicants to hires, and provides insight into the efficiency of the recruitment process. A low applicant-to-hire ratio can indicate a lengthy and ineffective process, while a high ratio can suggest a more streamlined and effective approach. To measure applicant-to-hire ratio, divide the number of applicants by the number of hires made in a given time period.
KPI #5: Candidate experience
Candidate experience measures the overall experience of candidates during the recruitment process, including factors such as responsiveness, transparency, and the candidate-friendliness of recruitment processes. A positive candidate experience can help build a strong employer brand and increase the chances of attracting and retaining top candidates. To measure candidate experience, collect feedback from candidates
How can LoopWise improve KPIs?
LoopWise is an interview scheduling tool designed to help recruiters streamline their hiring process and improve their KPIs. By reducing the amount of time it takes for candidates to schedule interviews, LoopWise helps to improve KPIs such as time-to-hire, cost-per-hire, and applicant-to-hire ratio. Additionally, LoopWise can help to improve the candidate experience by eliminating the back-and-forth emails often associated with scheduling interviews. By enabling recruiters to focus on the KPIs that matter most, LoopWise can help organizations achieve their hiring goals faster and more efficiently.