Recruiting Metrics For Improved Performance: September 11, 2008 NC SHRM State Conference

Recruiting Metrics for Improved Performance
Presented By
Tom Darrow
September 11, 2008
NC 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.”
Recruiting Metrics
Quality Time Cost Process Acceptance Recruiter Source

of Hire to Fill Per Hire Efficiency Rate Production Channels
• Resumes • Fills • Efficiency

• Screens • Use of • Cost by
• Interviews system source
• Offers channel
• Accepts

Quality of Hire
Recruiting Metrics


• Offers channel
• Accepts

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
Recruiting Metrics


• Offers channel
• Accepts

Time to Fill – How to Measure
•Days From Requisition to Acceptance
•Days From Requisition to Start Date

Time to Fill –
•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
Recruiting Metrics


• Offers channel
• Accepts

Cost Per Hire – How to Measure
Total Direct Recruiting Costs

Total Number of Hires*
*or Total Number of Positions Filled

Cost Per Hire – How to Measure
Total Direct Recruiting Costs
• Marketing •
Recruiter Salaries
– Brochures •
Agency Fees
– Job Boards
– Company Web Site •
Relocation
– ERP •
Orientation/Training
• Interview Training •
Background/Drug
• ASP/Applicant Tracking screens
• Candidate Travel • Testing
• Signing Bonus

Cost Per Hire –
•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

Recruiting Metrics


• Offers channel
• Accepts

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 4 40%
# of Offers 10

Process Efficiencies –
•Automate process
•Define service level agreement between
Recruiting and customers

Recruiting Efficiency Ratio
Total Recruiting Costs

Total Compensation Recruited

Total Recruiting Total Recruiting
Costs Compensation Efficiency Ratio
Recruited

Acceptance Rate
Recruiting Metrics


• Offers channel
• Accepts

Acceptance Rate –
•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
Recruiting Metrics


• Offers channel
• Accepts

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 –
•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
Recruiting Metrics
Quality Time Cost Process Acceptance Recruiter

of Hire to Fill Per Hire Efficiency Rate Production Source
Channels

• Offers channel
• Accepts

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 –
•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 Darrow
Founder and Principal
Talent Connections, LLC
175 Inverness Approach
Roswell, GA 30075
(770)552-1550 ext. 111
TomDarrow@talentconnections.net
www. talentconnections.net

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Recruiting Metrics for Improved Performance

Copyright 2008 Talent Connections. All Rights Reserved.

•How have you used metrics?

Copyright 2008 Talent Connections. All Rights Reserved.

•Recruiting Metrics – Why?

•Recruiting Metrics – What to Measure…

•Recruiting Metrics – How to Use…

Copyright 2008 Talent Connections. All Rights Reserved.

What does 2 + 2 equal?

Copyright 2008 Talent Connections. All Rights Reserved.

•To identify process steps that need improvement

Copyright 2008 Talent Connections. All Rights Reserved.

Quality Time Cost Process Acceptance Recruiter Source

• Resumes • Fills • Efficiency

Copyright 2008 Talent Connections. All Rights Reserved.

Quality Time Cost Process Acceptance Recruiter Source

• Resumes • Fills • Efficiency

Copyright 2008 Talent Connections. All Rights Reserved.

Copyright 2008 Talent Connections. All Rights Reserved.

– Review performance reviews

Copyright 2008 Talent Connections. All Rights Reserved.

•Expand sourcing channels

Copyright 2008 Talent Connections. All Rights Reserved.

“What gets measured, gets improved.”

Quality Time Cost Process Acceptance Recruiter Source

• Resumes • Fills • Efficiency

Copyright 2008 Talent Connections. All Rights Reserved.

•Days From Requisition to Acceptance

•Days From Requisition to Start Date

Copyright 2008 Talent Connections. All Rights Reserved.

Copyright 2008 Talent Connections. All Rights Reserved.

“What gets measured, gets improved.”

Quality Time Cost Process Acceptance Recruiter Source

• Resumes • Fills • Efficiency

Copyright 2008 Talent Connections. All Rights Reserved.

Total Direct Recruiting Costs

*or Total Number of Positions Filled

Copyright 2008 Talent Connections. All Rights Reserved.

Copyright 2008 Talent Connections. All Rights Reserved.

•Costs Not to include:

Copyright 2008 Talent Connections. All Rights Reserved.

“What gets measured, gets improved.”

Quality Time Cost Process Acceptance Recruiter Source

• Resumes • Fills • Efficiency

Copyright 2008 Talent Connections. All Rights Reserved.

Copyright 2008 Talent Connections. All Rights Reserved.

Copyright 2008 Talent Connections. All Rights Reserved.

Total Recruiting Costs

Copyright 2008 Talent Connections. All Rights Reserved.

Copyright 2008 Talent Connections. All Rights Reserved.

“What gets measured, gets improved.”

Quality Time Cost Process Acceptance Recruiter Source

• Resumes • Fills • Efficiency

Copyright 2008 Talent Connections. All Rights Reserved.

•Don’t confuse effort for accomplishment

Copyright 2008 Talent Connections. All Rights Reserved.

“What gets measured, gets improved.”

Quality Time Cost Process Acceptance Recruiter Source

• Resumes • Fills • Efficiency

Copyright 2008 Talent Connections. All Rights Reserved.

Copyright 2008 Talent Connections. All Rights Reserved.

•Role of Recruiting vs. Role of Hiring Manager

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