Attracting the best talent is one of the biggest challenges faced by many companies. Although most employers recognized the importance of an effective talent management process to attract and hire the right candidates, they are yet to develop a method to assess its efficiency.
If the companies fail to assess their recruitment strategy, they will waste both time and resources hiring candidates with the wrong skills and attitudes.
As we recover from the COVID-19 pandemic, it is crucial to have the right people in the right positions to retrieve the business quickly.
Gartner shows that one of the top three priorities for HR leaders in 2021 is to build critical skills and competencies. With a 10% increase in the total number of skills required for a single job and one-third of the skills listed in a typical job posting from 2017 will be obsolete by now.
Here are seven indicators that will help companies better understand the performance of their talent acquisition process.
Time to tire is the number of days it takes for an applicant from the start of the recruitment process until a candidate gets hired. Since most talented people are off the list within 10 days, the faster the process companies have a greater chance of attracting and hiring top talent.
To reduce the time it takes to recruit, companies must break down the recruitment process and monitor how long it takes to move applicants from one stage to another.
The company's spend right from recruiting, onboarding to training, benefits, and equipment varies broadly based on the organization's size, the position's seniority, and the number of recruitment channels used.
Maintaining talent pools, enabling employee referrals, building a strong employer brand via social media are some of a few strategies companies can use to reduce the cost per hire and optimize the recruitment process.
Qualified Candidates per Opening
An applicant who qualifies the application screening process and moves to the next stage is considered a "Qualified Candidate." This indicator shows us the quality of the application being received, which is more meaningful than the number of applications.
This is a crucial indicator as a company tends to attract unsuitable candidates, the roles will not be filled but can re-strategize to attract better talent.
This applies to the performance of the channels used to source applications. By monitoring and tagging every application to its source, companies can determine the performance of each network. Understanding the efficiency of the talent source ensures the best ROI on time and investment spent on recruitment.
Quality of Hire
Quality of Hire is the most crucial indicator in the list of KPIs used by companies. This indicator directly impacts a company's overall success as the quality of hire represents more productivity, better culture, and less turnover. Since it is hard to determine the quality, some quantifiable metrics like turnover and retention metrics, hiring manager satisfaction ratings, customer satisfaction ratings, and such are utilized.
The number of job offers rejected a strong indicator of how effective the hiring practices are. While applicants may have various reasons for rejection, they may also decline a company's offer for reasons such as organizational culture, unattractive pay, or inconsistency in job duties. Both can be identified and managed by the recruitment team. Surveys can be useful to find out the specific reason behind their refusal.
Despite the fact this measure is often overlooked, the satisfaction rate helps employers to consider how a candidate feels about the whole recruitment process. Companies can survey applicants and new hires to figure out what's behind the huge turnover rates, no-shows, and interview cancellations.
Building a survey with the candidate's privacy at its core is the easiest and quickest way to focus on the Satisfaction Rate.
To sum it up
Using a data-driven approach to evaluate recruitment strategy would provide businesses with a more realistic understanding of how talent acquisition affects their market strategy and how organizations can develop it to continue employing the best talent.
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