In Recruiting, you track your activities, costs, and how you are impacting business outcomes throughout staffing programs. The executive team and board should work with HR to create a series of Key Performance Indicators, or KPIs, presented on a monthly basis. Data comes from the use of your 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 you are reporting, and their definitions. We will soon be posting our results on a regular basis in this environment by job band and region, and also by the types of jobs you 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. Tracking new open positions helps you understand how to plan resources for demand, and also know how much to lean on 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.
You can 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 you 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 you find hires is an important number to track, as it relates to how much time and effort you are spending. Some companies experience its hires through employee referrals. You can track the source of interviews and hires by three major categories.
1) Familiar – these are internal transfers, employee referrals, alumni, and contractor conversions. This group is well known to the company, and typically have less risk with the hire.
2) Inbound – there are sourcing efforts that include job board postings, advertising in papers, signage on trucks and more. These methods broadcast to many people, but nobody in specific. Bundle that activity and cost together and measure effectiveness to broadcast and convert. Social media activity is bundled into this group.
3) Outbound – this is work where you can target personnel you know. Use names of people and chase them down. This includes the usage of agencies, as they use those methods as well. This includes us leveraging ATS and reaching out to previous applicants or candidates.
When you add a new employee, it’s very exciting for the business. Track those filled positions according to the segmentations above.
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. You can measure primarily in compliance %. Look to make sure that 75% of the 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 non-exempt positions, the difference is negligible, but in some of the managerial roles the difference can be as much as 4 weeks. In 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.
You can track how many team members leave the 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.