Recruiting Metrics for Improved Performance Presented By Tom Darrow September 11, 2008 NC SHRM State...

Recruiting Metrics for Improved Performance

Presented ByPresented By

Tom DarrowTom DarrowSeptember 11, 2008September 11, 2008

NC SHRM State ConferenceNC SHRM State Conference

Copyright 2008 Talent Connections. All Rights Reserved.

Your Experience With Metrics

•How have you used metrics?


Agenda

•Recruiting Metrics – Why?

•Recruiting Metrics – What to Measure…

•Recruiting Metrics – How to Use…


To Ponder

“There are three types of lies. Lies, Damned Lies, and Statistics.”

Benjamin Disraeli

What does 2 + 2 equal?


Recruiting Metrics – Why?

•To identify process steps that need improvement•To anticipate market trends and initiate competitive adjustments•To report recruiting results to senior management•To support business cases for programs and expenditures in recruiting •To evaluate and reward recruiting staff•To evaluate effectiveness of change initiatives


Metrics to Measure “What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics

• Resumes• Screens• Interviews• Offers• Accepts

• Fills• Use of

system

• Efficiency• Cost by

source channel


Quality of Hire

“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics


• Fills• Use of

system


source channel


Quality of Hire – How to Measure

•Short Term– Create quality of hire ratings

• A = Exceeds job description requirements• B = Meets job description requirements• C = Could meet job description requirements with minimal training

and coaching– Set company-wide annual percentage goals

• A = 20%• B = 60%• C = 20%

– Within a week of hire, collaborate with Hiring Manager to secure ranking

– After 6 months, secure another ranking from Manager


Quality of Hire – How to Measure

•Long Term

– Review performance reviews• Results by recruiter, source channel, department,

hiring manager

– Review retention• Results by recruiter, source channel, department,

hiring manager


Quality of Hire – Considerations/How to Improve

•Expand sourcing channels– Researchers– Contract Recruiters

•Is the company’s compensation plan competitive?•Time to Fill – Is it competitive?•Create interview methodology and train management•Encourage internal transfers•Utilize contractors


Time to Fill


Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics


• Fills• Use of

system


source channel


Time to Fill – How to Measure

•Days From Requisition to Acceptance

•Days From Requisition to Start Date


Time to Fill – Considerations/How to Improve

•Stop/Start– Consider it a new requisition

•How much does it cost to not fill opening?– Revenue loss per day

•Utilize phone screens•Reduce # of interviewers•Utilize technology

– Videoconferencing– ATS

•Streamline requisition and offer approval process– Fewer signatures– Automate– Salary range approval in requisition


Cost Per Hire


Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics


• Fills• Use of

system


source channel


Cost Per Hire – How to Measure

Total Direct Recruiting CostsTotal Number of Hires*

*or Total Number of Positions Filled


Cost Per Hire – How to MeasureTotal Direct Recruiting Costs

• Marketing– Brochures– Job Boards– Company Web Site– ERP

• Interview Training• ASP/Applicant Tracking• Candidate Travel• Signing Bonus

• Recruiter Salaries• Agency Fees• Relocation• Orientation/Training • Background/Drug

screens• Testing


Cost Per Hire – Considerations/How to Improve

•Costs Not to include:– Time of Hiring Managers and others– Donations/Grants to Universities– Administrative costs

• Telephone• Copies• Supplies

•How to improve– Hire recruiters/contract recruiters instead of search firms– World class Employee Referral Program– Eliminate brochures– Agencies – Preferred Vendor List


Process Efficiency


Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics


• Fills• Use of

system


source channel


Process Efficiency – How to Measure• Resumes

# of Resumes 100 25:1 # of Hires 4

• Screens # of Screens 80 80%# of Resumes 100

• Interviews# of Interviews 40 50% # of Screens 80

• Offers # of Offers 10 25%# of Interviews 40

• Acceptance# of Hires 440%# of Offers 10


Process Efficiencies – Considerations/How to Improve

•Automate process•Define service level agreement between Recruiting and customers


Recruiting Efficiency Ratio

Total Recruiting CostsTotal Compensation Recruited


Total RecruitingCosts

Total Compensation

Recruited

Recruiting Efficiency Ratio


Acceptance Rate


Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics


• Fills• Use of

system


source channel


Acceptance Rate – Considerations/How to Improve

•Don’t confuse effort for accomplishment•Probably the least important metric•Target should NOT be 100%•How to improve

– Better assessment– More accurate job descriptions– Analyze declines

• Reasons for decline• What was accepted?• Recommendations for improving process?


Recruiter Production


Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction

Source Channels

Recruiting Metrics


• Fills• Use of

system


source channel


Recruiter Production – What to Measure

•Quality of Hire•Fills

– Number of filled positions •Cost per Hire•Time to Fill•Use of ASP/Applicant Tracking System•Customer Satisfaction

– Good process?– Hire a fit?

•Retention– 90 day probation period only


Recruiter Production – Considerations/How to Improve

•Role of Recruiting vs. Role of Hiring Manager– Screen, interview, and counsel or just source and forward?

•Ensure criteria used to assess recruiter is within their control•Recruiter Workload

– Exempt level positions – 20 to 25 per month**– Non-Exempt positions – 35 to 50 per month**

– **depends on how many Hiring Managers and how many similar profiles


Source Channels“What gets measured, gets improved.”

Qualityof Hire

Time to Fill

CostPer Hire

Process Efficiency

AcceptanceRate

RecruiterProduction Source

Channels

Recruiting Metrics


• Fills• Use of

system


source channel


Source Channels – What to Measure

•Agencies, ERP, Campus, Internet, Company Web Site, Newspaper

– Acceptances– Quality of Hire– Time to Fill– Cost per hire– Process Efficiency

• Resumes to Hire


Source Channels – Considerations/How to Improve

•Research alternative sourcing channels•Create your own sourcing channels

– User group– Contest– Newsletter– Forum


Other Metrics

•AA/EEO/Diversity – Measure for adverse impact– Track metrics for reporting– Track metrics for enhancing diversity efforts

• Increase diverse applicant flow

•Generational analysis•What else?


Using Recruiting Metrics

•Business Planning– Budgets– Resource plans

•Improve Process Efficiency•Business case

– Systems (ASP/Applicant Tracking)– Recruiter Headcount

•When report?– Weekly, Monthly, Quarterly, Annually

•Industry Standards/EMA Survey– WARNING!

•In-house or outsourcing


Recruiting Metrics – Getting Started

•Commit to data capture•Compile company metrics from prior two years•Set goals for next fiscal period

– Push for a company staffing plan

•Capture data as it happens•Communicate to senior management


To Ponder

“Attaining one’s objectives is not a cause for celebration; it is a cause for new thinking”

Peter Drucker

“People are the one true competitive measure.”Hal Rosenbluth


Thank You!

Tom DarrowTom DarrowFounder and PrincipalFounder and Principal

Talent Connections, LLCTalent Connections, LLC175 Inverness Approach175 Inverness Approach

Roswell, GA 30075Roswell, GA 30075(770)552-1550 ext. 111(770)552-1550 ext. 111

[email protected] www. talentconnections.netwww. talentconnections.net


mailto:[email protected]

Recruiting Metrics for Improved Performance Presented By Tom Darrow September 11, 2008 NC SHRM State...

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