The ultimate HR metrics ‘cheat sheet’: part 2

Following our previous blogpost, we’re taking you further on our journey through the wonderful world of HR metrics. So hop on board! In this blog series, we want to shed light on the KPIs that matter the most to HR professionals, within the different fields of HR.

In our first blogpost, you read how data can change the field of employment & staff planning. This second part takes a closer look at the field of recruitment.

Are you active in recruitment? This post will be of interest to you if you’re involved in one of the following processes:

  • Talent sourcing
  • The hiring funnel – from applicant to hire
  • Employer branding

A data-driven recruitment strategy

A modern recruitment process is actually very similar to the marketing & sales cycle. Finding new applicants is basically the HR variant of ‘lead generation’. It starts with a well-executed employer branding strategy that will attract new talent for your company.

Once the applicants find their way to your company, it’s a process of qualifying them and converting the best match(es) to new hires, with a killer proposal.

Whereas sales automation and data-driven sales strategies have become the norm, how is that transformation going for recruitment? Although it’s a very similar process, data-driven recruitment is not yet the norm. But we’re getting there!

Just a little more patience, because we really ├íre getting there ­čśë. HR automation is well on track, thanks to countless new recruitment software and SaaS platforms that emerge. They help HR automate the recruitment process. Moreover, it opens up a lot of data related to the hiring funnel.

Many of those software platforms are starting to make smarter use of their data, by adding a reporting component to their platform.

But the important question for those SaaS companies is:

“Which data is important for our customers in their quest for talent?”

A list of key metrics for recruitment

Let’s dive into the data that’s relevant for recruiters. There are a couple of common challenges for almost anyone who is recruiting:

  • Where and how do I find new candidates?
  • How are candidates moving through the funnel from applicant to hire? What can we do to improve the flow?
  • How can we spend our recruitment budget more efficiently?

There’s an answer to all of these questions. In the table below, we’ll spell out the metrics related to these questions. 

Each row contains a measure to combine with the different metrics, in order to create a more detailed view on which factors are influencing your recruitment process.

Total candidatesTotal candidates hiredTotal interviewsCost per acquisitionCandidate to hire (conversion rate)Time to hireHiring target
Funnel stage┬╣
Recruitment channel┬▓
Candidate source┬│
Job position

Here’s some extra explanation for some of the measures:

┬╣ Depending on the organization, the hiring funnel will look different. One company might have 3 interviews per candidate, while the other might have just 1 interview, followed by a test or business case.

┬▓ ‘Channels’ refer to the recruiting channels employed to attract new candidates, for example LinkedIn, ads on job listing sites, your own website, an employer branding campaign, etcetera.

┬│ ‘Candidate source’ refers to whether the candidate is an internal employee (promotion), or external candidates (new hire).

Example of a recruitment dashboard

To give you a better understanding of what this would look like in a report, we’ve created an example dashboard. HR managers use this as a daily monitoring tool of their recruitment activities.

If you’ve developed a recruitment platform, it’s easy to create & embed a similar report into your application. Many SaaS companies have reported an increase in their platform usage, thanks to this extra – but often crucial – feature.

Curious what that would look like? Play around with the interactive dashboard below!

Missed our first introductory post? Read it here, or stay tuned for our next post on training & development!

Need help to get started? Speak with one of our product experts for a guided tour.

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