Good staff are always difficult to find - and even more difficult to keep. This job market development can have serious consequences for companies. Because highly motivated employees are essential for company success: with ever increasing competition, they often represent your most valuable resource.
So what can your HR people do to get your company (back) on top? A good starting point for building successful recruitment and employee retention programmes is HR management accounting. In the second part of our series, find out which KPIs (Key Performance Indicators) relating to "quality" and "effectiveness" you should keep an eye on:
Number of applications per channel
Not every job site is the ideal platform for every job. To get the most from your recruitment budget, identify the most relevant channels for your vacancies.
Definition: Number of applications received per channel
Example:
Applications received via CareerBuilder: 921
Recruitment channel effectiveness
Quality not quantity: use this KPI to determine the cost-benefit ratio for your various recruitment channels.
Definition: Number of successful new hires through a particular channel in relation to the number of applications received via this channel.
Example:
Applications received via CareerBuilder: 148
Vacancies filled via CareerBuilder: 12
Recruitment channel effectiveness (in percent): 8.1%
Employee referral rate
Employees know your company best of all and may recommend it to friends and acquaintances. Encourage your employees to help recruit new staff.
Definition: Proportion of candidates that apply as a result of an employee referral.
Example:
Total number of applicants: 118
Number of applicants as a result of employee referrals: 5
Employee referral rate (in percent): 4.2%
Offer rate
How many interviews are actually needed before a job offer is made? This statistic will help you find this out.
Definition: Proportion of interviews that lead to a job offer.
Example:
Number of interviews held: 19
Number of interviews resulting in a formal job offer: 5
Offer rate (in percent): 15.8%
Offer acceptance rate
How many candidates have actually accepted your job offers? This KPI may point to a a need to improve your employer brand.
Definition: Proportion of job offers that are actually accepted by candidates.
Example:
Number of job offers made: 5
Number of job offers accepted: 4
Offer acceptance rate (in percent): 80%
Talent pool quality
Your talent pool is a valuable HR instrument for active recruitment. Measure the quality of the available profiles.
Definition: Proportion of applicants from the talent pool actively approached, who actually submit a qualified application.
Example:
Total number of applications via the talent pool: 41
Number of qualified applications via the talent pool: 27
Talent pool quality per job vacancy (in percent): 65.9%
Retention rate
How strong is your employer brand? How attractive is your working environment? And how well are new employees integrated into the team? Find out how many new hires are satisfied, or resign after being on board for only a short time.
Definition: Number of new employees that are still working in the company after a specific period of time
Example:
Total number of employees recruited 6 months ago: 12
Employees recruited 6 months ago that are still working in the company: 11
Retention rate (in percent): 91.7%
Read more about KPIs relating to „costs“ in the part three of our series.
NOTE: using a professional applicant tracking software ystem can not only help improve your metrics, but it can also help you analyse these and many other KPIs – and turn management accounting into HR child's play. Interested in learning more? Contact us and one of our experts would be more than happy to give you advise!
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