HireHive Team
HireHive
Recruitment key performance indicators (KPIs) are metrics that HR teams use to measure the performance of their hiring processes. They provide valuable insights into the efficiency, effectiveness, and overall health of recruitment. They can show what is going well, and highlight specific areas that need improvement.
HireHive Team
HireHive
According to our poll, 38% of respondents report on their recruitment KPIs every month, 50% report quarterly, and 12% never report.
By focusing on the right KPIs and reporting frequently, organisations can streamline their recruitment efforts, improve candidate experience, and ultimately, hire the best talent.
Here are the top recruitment KPIs every HR team should be tracking.
1. Time to Fill
Time to Fill measures the number of days it takes to fill an open position from the moment a job requisition is approved until the candidate accepts the offer. This KPI is crucial because it reflects the efficiency of your recruitment process. A shorter time to fill means your hiring process is swift and effective, while a longer time may indicate potential bottlenecks, such as delays in candidate sourcing, slow interview scheduling, or prolonged decision-making processes.
Tracking Time to Fill helps identify which stages of the hiring process need optimisation and whether additional resources are needed. For example, if there are delays in scheduling interviews, you can streamline the interview scheduling process by using a recruitment platform.
2. Time to Hire
Time to Hire is a KPI that measures the duration from the moment a candidate enters the pipeline (e.g., applies for a job or is sourced by a recruiter) to when they accept the job offer. While similar to Time to Fill, Time to Hire focuses specifically on the candidate's journey and the recruitment team's efficiency in moving candidates through the process.
A shorter Time to Hire is generally a positive indicator, suggesting a smooth recruitment process and a strong candidate experience. Tracking this metric can pinpoint stages where candidates may be dropping off, or where the process is lagging. This insight allows hiring teams to refine their approach to improve efficiency.
According to the Totaljobs 2024 UK Hiring Index, the average time to hire is 4.9 weeks, with larger companies (250-999 employees) typically taking 5 weeks. How does your organisation compare with this benchmark from the UK?
3. Quality of Hire
Quality of Hire is a critical KPI that evaluates the value new hires bring to the organisation. It is typically measured by combining several factors, including job performance, retention rate, and cultural fit. High-quality hires tend to be productive, stay longer, and positively impact the organisation.
To measure Quality of Hire, HR professionals can collect feedback from hiring managers, assess performance reviews, and analyse retention data. This KPI is particularly valuable because it goes beyond the recruitment process to evaluate the long-term success of hires, offering insights into the effectiveness of sourcing and selection strategies.
4. Offer Acceptance Rate
The Offer Acceptance Rate measures the percentage of job offers extended to accepted candidates. A high acceptance rate indicates that your organisation offers competitive compensation packages, has a positive employer brand, and effectively manages the candidate experience. Conversely, a low acceptance rate may signal uncompetitive offers, a lengthy hiring process, or misalignment between candidate expectations and job realities.
By tracking this KPI, HR and recruitment teams can identify the reasons behind rejected offers and make necessary adjustments to improve their attractiveness to top talent.
5. Cost per Hire
Cost per Hire is an essential KPI that calculates the average expense incurred to fill a position. It includes costs associated with job advertising, recruiter fees, technology tools, background checks, and other hiring-related expenses. This metric helps HR professionals understand the financial impact of their recruitment activities and identify opportunities to reduce costs.
A high Cost per Hire may indicate inefficiencies in the recruitment process, such as an over-reliance on expensive job boards or excessive use of external recruiters. By analysing this KPI, organisations can optimise their recruitment budget, negotiate better rates with vendors, and allocate resources more effectively.
6. Source of Hire
61% of businesses say finding the right candidates for open positions is a key challenge. Understanding where your best candidates come from is key to optimising your recruitment strategy.
The Source of Hire KPI tracks the origin of successful hires, whether it’s job boards, employee referrals, social media, recruitment agencies, or company career pages. This KPI helps to identify which sources are the most effective in attracting high-quality candidates.
By analysing this metric, organisations can invest more in high-performing channels and refine their sourcing strategies to improve hiring outcomes. For example, if employee referrals result in higher-quality hires, you might consider introducing a referral programme.
7. Retention Rate of New Hires
The Retention Rate of New Hires measures the percentage of new employees who stay with the company for a specified period, such as six months or one year. This KPI provides insights into the effectiveness of the recruitment process and onboarding programs. A low retention rate may indicate issues such as poor cultural fit, inadequate onboarding, or unmet job expectations.
By monitoring this KPI, HR professionals can take proactive steps to improve employee retention, such as enhancing the onboarding process, providing better support to new hires, and ensuring clearer communication of job expectations during recruitment.
Recruitment KPI Reporting Tools
Tracking the right recruitment KPIs is an essential practice for optimising hiring processes and attracting top talent.
A recruitment platform or Applicant Tracking System (ATS) like HireHive can deliver this data at the touch of a button. In-built reporting and analytics tools remove the need for manual data entry and provide a real-time view of key areas including Candidate Pipeline and Time to Hire.
Having visibility of these KPIs means you gain valuable insights into your recruitment strategies and can make data-driven decisions. Ultimately, the right metrics help you build a more efficient, effective, and candidate-centric recruitment process that drives organisational success.
Want to see how KPI reporting through HireHive works?
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