A growing business requires great employees to serve the needs of an expanding customer base. This is where many companies fail to put together an effective and efficient strategy. When the need for workers arises, the company blasts job boards with postings, and then when resumes start pouring in, someone goes through them and calls the ones of interest. This approach leads to a lot of wasted time and energy, and it could result in the best candidates slipping through the cracks. Your business tracks everything else revenue, margin, marketing ROI, and so forth so why wouldn’t you track recruitment metrics? Measuring these five metrics leads to a smoother recruitment process and a better chance of landing the best hires.
Perhaps the biggest time waster in the recruitment process is spending hours poring over resumes of people who are utterly unqualified for the position. When you post a job opening in public places, such as job boards, you’re certain to get these resumes. That’s because many applicants treat the job search process as a numbers game, blasting their resumes to every job available and hoping for a bite here and there. To cut down on time spent reviewing resumes that are nonstarters, you need to measure how many resumes you receive from each source and compare that number to how many you invite for interviews. Suppose job board A results in 250 resumes but only one candidate worth interviewing, while job board B brings in 100 resumes but you interview four of them. Job board B is a better source, as it offers not only more qualified candidates but significantly less wasted time.
Often, the best job candidates come not from soliciting applications on job boards but from approaching qualified candidates directly. LinkedIn is a fantastic source to find employees, as is reaching out to people by email. For this process to be effective, it requires legwork. You have to identify top prospects and compose a winning opening email to whet their interest. Done correctly, proactive outreach should result in a high response rate that easily exceeds 50%. Even when prospects write back to say they’re not looking to make a change at the time, it’s still a positive sign, as it means they’re keeping the dialogue open. If you get responses from less than half of your prospects, you should consider retooling your approach. Make sure you aren’t courting candidates who are overqualified and that the emails you’re sending out are compelling.
You’ve probably heard of companies that interview 20 or more people for a single job opening. Perhaps you’ve been involved in an interview process at one time that pitted you against dozens of other applicants. Interviewing such a high number of people wastes your company’s time and that of the applicants. Suppose you bring in 20 prospects and block off two hours for each interview; that’s a full work week spent interviewing. If you’re screening resumes efficiently and asking the right questions on the initial phone call, there’s no reason to interview more than four or five people for one job opening. If you find your company exceeding this ratio, try to come up with ways to whittle down your candidate list prior to the interview stage.
By the time you get to the offer table, you’ve invested quite a bit of time and effort in the candidate. From reviewing the resume, to making the initial phone call, to conducting one or more rounds of interviews, to running a background check and calling references, the hiring process requires a lot of manpower and company resources. When a candidate says “no” at the offer table, it means you have to start the entire process over with someone else. You want these occurrences to be minimal. If you’re consistently getting turned down by more than one out of 10 candidates you offer, it’s time to figure out why. The two biggest reasons people turn down job offers are because the pay is too low or because they’ve accepted another offer in the meantime.
If the time from when you first engage a prospect to when you extend an offer stretches on too long, your top prospects fall through the cracks because other companies beat you to the punch. Just like the most attractive men and women on dating sites are constantly inundated with messages, the best and most qualified employees have no shortage of job offers. A longer hiring process means that your top candidates have more time to get other offers that snatch them away. You should aim for your time to hire meaning the number of days from the first phone call to the offer session to run no longer than one week. If you’re interviewing a reasonable number of candidates, meaning five or fewer, and working efficiently through the due diligence process, such as deciding on your top candidate and conducting a background check, there’s no reason your hiring process should take longer than this. Keeping up with recruitment metrics is as important as tracking sales numbers and marketing ROI. It saves your business time and energy, and results in bringing better candidates on board.