Recruitment KPIs

    What is a KPI?

    KPI stands for key performance indicator and is how many companies measure success within their teams.

    What are KPIs in recruitment?

    Recruitment kpis are how agencies measure the effectiveness, efficiency, and success within their recruiting team and recruiting strategy. Recruitment KPIs matter because they help recruitment agencies improve their recruitment processes and streamline the recruitment funnel. Without monitoring recruitment KPIs, agencies wouldn’t be able to make strategic decisions on their business based on data. A few of the key performance indicators that recruitment agencies typically look at are:

    Time to Fill (TTF)

    Time to fill measures the amount of time it takes to fill job postings, from when it’s first opened to when a candidate accepts the position. The TTF rate indicates the recruitment funnel effectiveness of an agency’s recruiting efforts. A low TTF shows that the hiring process is efficient and effective.

    Time to Hire (TTH)

    Time to hire is how an agency measures the average time it can take to hire a candidate, from their initial application or interview, to the date when they start working. This can include the time spent on sourcing, screening, interviewing, and the final onboarding, it’s essentially measuring the total time they spend in the recruitment funnel. If the time to hire rate is shorter, it indicates a faster and more efficient hiring process.

    Cost per Hire (CPH)

    The cost per hire looks at how much it costs to fill a job opening, on average. The hire cost includes all of the recruitment costs, like advertising, agency fees, recruiting software, and staff salaries. A recruitment agency should look to be reducing the cost per hire as it helps optimise recruitment spending and gives an indication of any bottlenecks within the recruitment funnel.

    Quality of Hire (QOH)

    The quality of hire looks at the performance and fit of new hires within their new role. This looks at specific metrics such as the retention rate, the candidate’s performance evaluations, manager satisfaction, and feedback from colleagues. If the quality of hire rate is high, it indicates that the talent acquisition was a success.

    Candidate Satisfaction Score (CSS)

    Candidate satisfaction score looks at the level of satisfaction among the applicants throughout the hiring process. Qualified candidates can provide information on this by filling out surveys, feedback forms, or a Candidate Net Promoter Score (NPS). A high CSS shows that the recruitment efforts have left applicants with a positive candidate experience.

    Offer Acceptance Rate (OAR)

    Offer acceptance rate calculates the percentage of offers extended that are accepted by high quality candidates. This helps to assess the attractiveness of job offers and the effectiveness of the recruitment process and recruitment team in being able to source and secure top talent.

    Source of Hire

    Source of hire looks at the sourcing channel efficiency and how many successful candidates were recruited from specific recruitment channels or sources. The source of hire rate helps recruitment agencies optimise their recruitment strategies to focus on the most effective job sites, referrals, social media channels, or direct sourcing, that provide the high quality candidates to their clients.

    Hiring Manager Satisfaction (HMS)

    Hiring manager satisfaction measures how happy hiring managers are with the recruitment process and the quality of candidates that they had presented to them. Positive feedback indicates that the recruitment strategy for this client produced an effective collaborating between recruiters and the hiring teams.

    Recruitment KPIs are an important tool for helping optimise the hiring strategy of a recruitment agency. There are a number of other recruitment metrics that are looked at within the recruitment industry as well. No matter what metrics or recruiting KPIs you’re looking to optimise, it’s important to keep an eye on your recruitment analytics so you can be making data driven decisions and consistently improving your recruiting process.