May 27 2020

Over 70% of hiring managers claimed that recruiting departments need to focus on more data-driven in order to improve long-term business impact. This increases the need for recruitment metrics. The procedure of the companies is mainly based on those metrics which must be greater. According to PwC, on average HR makes up to 28% of the total operating expenses of a company. With no wonder, nowadays companies are asking their recruiting departments to calculate metrics and demonstrate their ROI increasingly because there is huge money at stake. For the company professionals who are specialized to acquire talents, a guide is required on recruiting metrics that provide a comprehensive overview to optimize, measure, and demonstrate the business value of the recruiting procedures. There are various measures for the right metrics for recruitment, one of the important one is the Applicant Tracking System. Bizex has that recruitment system

APPLICANT TRACKING SYSTEM

An applicant tracking system is used by the companies in order to organize candidates for hiring and recruitment purposes. These systems help business firms to collect information, organize prospects based on the experience of the applicant, skillset, and filter them. More than 500 Companies are currently using this applicant tracking system. Besides the excellent capacity of these systems for storing candidate information, some of the best Application Tracking Systems can track all communications with candidates. As a result of this, the whole procedure becomes very easy for searching and filtering the resumes and other candidate information, the time spent on filling decreases and lastly, all companies get the desired employees for the best position


How do Applicant Tracking Systems Work?

Applicant tracking systems allow the simplification of the recruiting process by using automated intelligence for the screening of the best and most qualified candidates. As many firms have positions open in order to attract hundreds or even thousands of candidates not having the necessary qualifications, the Applicant Tracking System saves time for both the companies as well as the recruiters which would be otherwise spent manually striking out the unnecessary candidates. Candidates always search for application processes that are easy and user-friendly.

A good applicant tracking systems allow people to easily apply for a position with the help of any device. They do not need to log in. As a result, the companies derive their profit from a larger pool of applicants, who have ranked automatically on the basis of skills and experience. During the recruitment process, a user can easily submit feedback and notes about a candidate with the help of an applicant tracking system. Many of these systems also allow for collaboration from a mobile device so that it becomes easy for busy recruiters and hiring managers. Some applicant tracking systems use the latest technology in their systems like natural language processing and artificial intelligence in order to screen and sort candidates’ resumes. What these systems actually do is scan resumes, look for keyword matches, and use other algorithms for data analysis. Some of the applicant tracking systems also integrate with job boards, streamlining job postings.

If you want to know the secrets behind:

  • Organizations that have a standard onboarding process and experience 54% greater new hire productivity overall.
  • Companies whose onboarding programs have increased retention by 25%.
  • Companies whose onboarding programs improve employee performance by up to 11%.


Then it is the employee onboarding software.

It is not the obvious benefit of employee onboarding software that holds organizations back from implementing programs that work. It is the required time, money, and manpower that keep leaders and their new hires from a highly engaging first few weeks on the job. That’s where the onboarding software helps.
Employee Onboarding software is a technology that helps employers have a smooth transition for new hires. Many a time, employee onboarding software features a digital dashboard that shows talent acquisition teams to smoothly communicate with one another and track the progress of each hire while they move through the employee onboarding stage of employment. This includes I-9 verification, integrations for payroll, compliance insight and tools, and benefits administration. Some employee onboarding software also acts as a linkage between the organization’s applicant tracking system and performance management system in order to provide a seamless transition in the new hire’s employment history.

Recruiting metrics are measurements that give insights into the value and effectiveness of the recruiting process. These metrics capture the time and money spent on certain practices along with the conversion rates of the various steps of the recruiting funnel. With the help of the information of the working of various functions and also about their underperformance, recruiting metrics are vital to know certain portions where process improvements are needed and justifying investments to specific recruiting functions.
The potential list of all the metrics a company can collect is long. Jibe has found the top 10 metrics that talent acquisition professionals apply in order to assess the success of their recruiting process include

  • 57% – Source of hire
  • 50% – Time to hire
  • 42% – Applicants per hire
  • 41% – Cost per hire
  • 41% – Candidate experience
  • 38% – Retention
  • 37% – Offer acceptance per hire
  • 36% – Quality of hire
  •  36% – Vacancies vs. positions filled
  •  25% – Diversity

Recruiting metrics also involves conversion rates across the recruiting funnel. Overall, more or less about 1% of candidates are hired.

  • Lever’s data of average conversion rates states:
  • 17% – Candidate to screening conversion rate
  • 32% – Screening to interview conversion rate
  • 31% – Interview to offer conversion rate
  • 69% – Offer acceptance rate
  • 1.2% – Candidate to hired conversion rate


Here, we will focus on 4 key recruiting metrics:

  1. Source of hire
  2. Time to fill
  3. Cost per hire
  4. Quality of hire

Bizex is one such organization that offers you this kind of ideal recruiting process.

THE SOURCE OF HIRE
Source of hire is the recruiting metric showing where the background history of the new employees.

Silkroad’s data shows the most common sources of hire include:

  • 31% – Job board or aggregator
  • 22% – Employee referral
  • 11% – Internal hire
  • 11% – Company career site
  • 10% – Agency

Source of hire data will offer you certain insights in certain portions to reduce costs, to allocate the marketing and advertising budget, and on choosing the correct recruiting programs and tools to invest in.

Time to fill in the number of days between the approval of a job requisition and the day of acceptance of an offer by the candidate. Time to fill in the metric to calculate the efficiency of the recruiting process. SHRM’s latest survey finds out that the average time to fill is 41 days. Because of a tighter talent market and increased hiring volume in this current year, a pressure is created to the recruiting teams for reducing their time to fill.
iCIMS has divided the time spent on the hiring process as:

  • 15% – Applied
  • 23% – HR Screening
  • 37% – Hiring Manager Review
  • 23% – Interviewing
  • 2% – Hired

Source of hire data will offer you certain insights in certain portions to reduce costs, to allocate the marketing and advertising budget, and on choosing the correct recruiting programs and tools to invest in.

Time to fill in the number of days between the approval of a job requisition and the day of acceptance of an offer by the candidate. Time to fill in the metric to calculate the efficiency of the recruiting process. SHRM’s latest survey finds out that the average time to fill is 41 days. Because of a tighter talent market and increased hiring volume in this current year, a pressure is created to the recruiting teams for reducing their time to fill.


iCIMS has divided the time spent on the hiring process as:
This means 63% of the recruiting cycle is totally under your control for streamlining or automating. Time to fill is the easiest recruiting metric in order to improve because there are loads of recruiting software tools that might help you to automate parts of your recruiting workflow. Reduction in the time to fill has the added benefit of creating a competitive recruiting advantage if one can reach out and provide offers to candidates faster than contemporary competitors.

Cost per hire is a measure of the cost-effectiveness and efficiency of the recruiting process. Having an adequate amount of data on your cost per hire is essential to identify areas for improvement and help plan your recruiting budget. Here is a quick formula of how to calculate your cost per hire to have maximum optimization of your recruiting process.

Cost per hire formula

SHRM’s formula for cost per hire is the sum total of all recruiting costs divided by the number of hires in a given time period:

•  (total internal recruiting costs + external recruiting costs) / (total # of hires in a given time frame)
Internal recruiting costs

Internal recruiting costs are the money spent on internal staff and organizational costs of the recruitment function. These include:

  • Recruiter salaries
  • Employee referral bonuses
  • Interview costs (# of hours X hourly salary of an interviewer or hiring manager)
  • Fixed costs such as physical infrastructure (e.g., office rental)

External recruiting costs

External recruiting costs are the money spent on external vendors or out-of-office costs including:

  • Agency fees
  • Advertising costs (e.g., job boards)
  • Technology costs (e.g., recruiting software)
  • Career fair / recruiting event costs

Thus, through all these brief methods recruitment process can be well measured in a proper way and can help certain organizations to achieve the right and time effective procedures for efficient employees. Unnecessary stages must be eliminated. Resume screening and unnecessary call phases must be started just after getting the first candidates. The hiring teams must be well organized to work dedicatedly and efficiently. Bizex is a lead in this procedure. It must be kept in mind that the business value is reflected in the recruiting process.