“Without data, you’re just another person with an opinion.” – W. Edwards Deming
The statistician had a point every HR manager would do well to consider: Do you feel your current recruitment efforts are effective, or do you know they are? How is your recruitment strategy..really?
In 2022, 4.5 million employees in the US quit their jobs [Factorial HR]. As a result, there are now far more job openings than there are candidates to fill them (about 10.5 million job openings versus 6.0 million unemployed people, according to Statistica).
Depending on your industry (take hospitality, for example), you may have seen your applicant pool decrease at an alarming rate due to the growing number of remote opportunities, and jobs with built-in flexibility.
What does that mean for your company? Hiring has become hyper-competitive, and you simply can’t afford to recruit without the benefit of talent analytics.
Here are 2 key sources of data you may want to consider when determining the success of your current recruitment strategy, and some helpful tools for obtaining it.
#1. Quality of hire [QoH]
According to Workable, 40 percent of large companies and 45 percent of small businesses look at QoH first when it comes to measuring recruitment KPIs. Why? Because a single bad hire can end up costing a company in the ballpark of $240,000. [Spiceworks].
QoH measurement may include:
- New hire performance metrics: How a new hire adds value: Think sales goals, production timelines and how many days they called in sick.
- Turnover and retention metrics: Are your new hires fitting in and sticking around?
- Hiring manager satisfaction ratings: How your in-house team feels about the quality of the recruitment strategy and new hires. Hint: It may be quite different than the view of your CFO or other employees.
#2. Cost + source of hire
Cost-per-hire is the total amount you spend on recruitment annually (internal and external) divided by the total number of hires.
How are you sourcing new candidates? If you’re investing in your strategy (dropping money on job sites, enlisting the help of recruiters, or paying a team of in-house pros) you need to look at your ROI. Objectively. Numbers don’t lie, and this formula may offer important insight on your current efforts.
>Customer Relationship Management (CRM) Software: Bid farewell to clunky spreadsheets and paper files with programs like BambooHR. HR-focused CRMs give you a place to collect and organize information on your new hire – a one-stop drop for all the data you will need to determine QoH.
>Assessments: Millions of recruitment pros rely on the PI Behavioural Assessment to measure employee suitability within an industry sector or role. It delves into four key behavioural drives: dominance, extraversion, patience and formality, and their impact on long-term success.
>Artificial Intelligence: You can reduce your cost-per-hire with AI programs like Breezy. Simply put, it’s a virtual personal assistant that can share job openings, streamline the qualification process with skills testing and background checks, and simplify offers. Over 17,000 companies are using Breezy to automate repetitive hiring tasks, and why not? Buy one program, cross three tasks off your list!
If you’d like a second opinion on the success of your recruitment efforts, talk to the experts at Squadron RPO. An RPO partnership could mean huge savings, with streamlined data collection and analysis using the very best tools in the business. Book a free consultation here.