In Recruiting, we are tracking our activities, costs, and how we are impacting business outcomes through out staffing programs. Our executive team and board have worked with HR to create a series of Key Performance Indicators, or KPIs, that we present on a monthly basis. Our data comes from the use of our HR systems, manual collection of costs from the field, and also centralized analysis from the finance team of the cost centers and their spend.
Below you will find the KPIs that we are reporting, and their definitions. We will soon be posting our results on a regular basis in this environment by AMBU and GSBU, by region within each business unit, and also by the types of jobs we hire (exempt, non-exempt, full time, part time, full time seasonal, and part time seasonal).
A New Open Position is counted daily, weekly, monthly and quarterly when its has been approved to be posted and accept applicants by the hiring manager and HR. At DBi, we open 1 to 3 positions a day, if we include seasonal and temporary hiring. Tracking new open positions helps us understand how to plan our resources for demand, and also know how much to lean on our employees for referrals more or less throughout the year.
A position starts to age as soon as it is posted and approved by the HR team to accept candidates, also known as the “Recruiting Start Date”. It ages until the position has earned an offer acceptance by the candidate. Aging is normal, and although an average is an interesting number, it is not very telling on how we are advancing in specific regions or business units.
We track aging of positions in 15 day buckets, and count how many positions are in each bucket by region, business unit, and job type. This distribution helps us understand where bottlenecks maybe in the process. Aging is measured in 0-15, 16-30, 31-45, 46-60, 61-75, and 75+ day increments. It is the goal of HR to have all positions have a time to fill of less than 60 days, and over 75% of the roles in the business filled within 45 days.
Where we find our hires is an important number to track, as it relates to how much time and effort we are spending. DBi experiences almost 50% of its hires through employee referrals currently, and that is a healthy number. We will track the source of our interviews and our hires by three major categories.
1) Familiar – these are internal transfers, employee referrals, alumni, and contractor conversions. This group is well known to us, and typically have less risk with the hire.
2) Inbound – we have sourcing efforts that include job board postings, advertising in papers, signage on our trucks and more. These methods broadcast to many people, but nobody in specific. We bundle that activity and cost together and measure our effectiveness to broadcast and convert. Our social media activity is bundled into this group.
3) Outbound – this is work where we deliberately target personnel we know. We have names of people and chase them down. This includes the usage of agencies, as they use those methods as well. This includes us leveraging our ATS and reaching out to previous applicants or candidates.
When we add a new employee, its very exciting for our business. We track those filled positions according to the segmentations above, and DBi adds 1 or 2 employees almost every working day.
Time to Fill is measured from the Recruiting Start Date until the Offer Acceptance. It is measured in calendar days, and can be averaged across different segments. We measure primarily in compliance %. We look to make sure that 75% of our positions have a Time to Fill under 45 days.
It is also known as Time to Offer, and is a standard measure of performance of the hiring manager and HR together. It helps the business understand the effective partnership between HR and the hiring teams, as a slow Time to Fill is an indicator of poor communication, mismanaged handoffs, and a missed sense of urgency.
Similar to Time to Fill, this measures from the Recruiting Start Date until the actual Start Date of the candidate. In our non-exempt positions, the difference is negligible, but in some of our managerial roles the difference can be as much as 4 weeks. In some of our International positions, a longer start delay can also be customary.
This measure helps understand overall vacancy and how long productivity is suffering (or not) overall. Time to Start averages tend to shift through the year, with longer Time to Start in the December / January time frame, and again in the late Summer.
All of the external costs associated with hiring, and all of the internal costs associated with hiring are added together and then divided by the number of hires within a specific segment of our business (or is done for the entire enterprise).
Costs associated with hires include (but are not limited to) advertising expenses, background checks, drug tests, employee referral bonuses, relocation fees, sourcing costs, technology, sign on bonuses, agency fees, cost of recruiting staff, and interview time of hiring managers.
We track how many of our team members leave our business within the first 90 days, 180 days, and within the first year of employment. Excluding seasonal hiring, turnover within 90 days, voluntary or involuntary, is a combined failure of HR, the hiring manager, and the candidate – so we watch that carefully. Turnover is capture in these ranges and also segmented into voluntary and involuntary turnover.