Hiring
5 min

Is Your Talent Acquisition Strategy Working?

One of the main priorities for businesses is to attract and retain talent. However, this also proves to be a challenge that many organisations face. Most employers recognise the importance of an effective talent acquisition strategy but have not developed a method for measuring its effectiveness.

If companies fail to measure the success of their recruitment strategy, they risk wasting valuable time and money and recruiting those with the wrong skills and cultural fit, without pinpointing why.

Here are some metrics which you can use to assess the performance of your recruitment strategy

Mistakes Hiring Managers Make

1. Time to Hire

Time to hire is the number of days between the beginning of the process and when a candidate gets hired. On average, the best talent is only on the market for 10 days. So shortening your process, it gives you a better chance of attracting and hiring top talent.

To optimise your time to hire, measure how much time it took to move candidates from stages.

Here is a good article on how exactly to track and speed up your time to hire.

2. Cost per Hire

It is crucial to know how much each hire costs you, including all costs related to coding such as the purchase of equipment, onboarding, administration, and benefits. This varies on the role and company size, seniority of the position and whether you use an external recruitment partner.

There are many ways companies can reduce their cost per hire and optimise the recruitment process. You could consider building a talent pipeline, employee referrals, using social media to create an employer brand, and using ATS to streamline and expedite the recruitment process.

3. Qualified Candidates per Opening

A “qualified candidate” is anyone who passes the application screening process. Furthermore, this metric is much more useful than using the total number of candidates. It shows recruiters how good the candidates they are attracting are. This is important as if you are attracting unsuitable candidates, you won’t fill the position with the right candidate-if at all. If you are aware you aren’t hitting the right cohort will allow you to adapt your talent acquisition strategy for the future.

4. Sourcing

Sourcing refers to the performance of the channels, job boards, or social media platforms where jobs are advertised. Companies need to know which of these channels performs best.

Moreover, to measure this, candidates need to be tagged according to the acquisition source when they submit their application or to where the recruiter found the profile (LinkedIn, Employee referral, Internal, Facebook, Indeed, etc).

Understanding the most effective source of talent ensures the best ROI on time and investment spent on recruiting.

5. Quality of Hire

Quality of Hire measures the value new hires bring to a company. Hiring quality employees leads to less turnover, better productivity, and company culture. However quality is quite difficult to measure so you might like to think about performance metrics instead.

Such as new hire performance metrics such as sales targets or achieving good customer satisfaction ratings, turnover and retention metrics, hiring manager satisfaction ratings, or the percentage of new hires promoted within a certain time frame.

Improving the quality of hire requires alignment with leadership to define the factors that make a quality hire and to set the strategies that will help hire the right people.

6. Offer-Acceptance Rate

The percentage of job offers accepted is a good indicator of how well the hiring practices are working. While candidates might decline a job offer due to external reasons such as counteroffers, they can also refuse the company’s offer due to reasons related to the company culture, unattractive compensation, or mismatched job duties as per the job description, then perhaps these could have been managed better by the hiring team.

7. Satisfaction Rate

This metric is often ignored, however, satisfaction ratings allow companies to understand how candidates are experiencing the hiring process. To measure it, companies can survey candidates and new recruits. It is important to know why interviews are being cancelled, or why you have high turnover rates in new hires.

You should establish a framework that allows you to measure your candidate’s experience. Build a survey that is easy and quick to answer, and focuses only on key satisfaction aspects regarding the recruitment process to get more answers.

In conclusion

By using a data-driven approach to evaluate your talent acquisition strategy you will get a more holistic view of how talent acquisition is impacting the business strategy and how they can improve it so they can consistently attract and hire the best talent.

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