3 Recruitment Funnel Metrics You HAVE to Start Tracking
Numbers and statistics can guide many decisions, however, many recruiters still rely heavily on instinct when it comes to sourcing and hiring. The idea of a “data-driven hiring cycle” is becoming more relevant than ever as the use of analytics becomes more attainable for many companies. A 2015 survey reported 43% of companies struggle with finding the talent analytics they need. While this number is higher than we’d like to see, it’s far lower than if the questions were asked ten, or even five, years ago.
Due to the increased focus on data, today’s recruiting and talent acquisition leaders are able to easily locate and analyze a company’s current state of recruiting performance, down to the the team or individual recruiter. This means recruiters have to understand the tools and strategies in capturing these metrics, the depths of the data and how they affect overall recruiting strategy. Optimize your recruiting funnel by identifying and analyzing these three recruitment funnel metrics:
The Source of Candidate Conversion Rates
Today’s recruiters have more sourcing channels than ever before thanks to technology. Sources such as referrals, career sites, social networks, job boards and so on, all need to be evaluated for effectiveness. For example, do you have a lot of great candidates coming from employee referrals? If so, analyze the information and take it to a manager, who could then help you set up an employee referral program.
What you need to do: To dig even deeper, find which sources have the highest conversion rates. Are you sourcing through multiple platforms? Which ones actually resulted in a quality hire? Digging into these metrics will allow you to recruit more intelligently with your recruiting funnel in mind. You will find out which sources yield the best candidates so you can spend more time where it counts.
Bonus: Perhaps you’re already measuring sourcing channels, but are you looking at difficulty or sophistication of hire? Dan may be using referral sourcing to get just five hires while Jennifer uses raw sourcing to get over 25 in the same time period. But if Dan is trying to recruit engineers and Jennifer is staffing the service center, it’s not a metric that will stand up to scrutiny.
Perhaps you’re already measuring sourcing channels, but are you looking at this?
The Speed at Which Candidates Move Through Your Pipeline
From the moment a candidate realizes your company has an open position all the way up to the hire date, they’re basically in a series of stages. You need to determine how quickly they move from stage to stage to be able to accurately assess your funnel.
One study suggests it takes the average company 26–34 working days to fill an open position, which is an all-time high. You need to note if a candidate is getting stuck somewhere in your process, meaning you will need to identify the bottleneck. Is there an interviewer in your company that is taking too long? Are candidates not getting a response quick enough for a second interview?
Digging into the speed at which candidates move through your pipeline will give you these answers.
What can you do to make sure candidates aren’t getting stuck in your sourcing process? Read this:
What you need to do: While you don’t want to rush candidates through the recruiting process, you want to make sure the process is always moving. Drill down into your data and identify the problem areas. If interviews are taking too long, ask candidates to submit interview feedback.
Bonus: You may know your process takes too long, but how can you identify where this is? Some platforms will allow you to see into your recruitment team at a granular level so you can raise accountability with hiring managers and recruiters.
The Conversion Rates Between Stages
This involves taking a look at how many, or how often, candidates are making it into the next stage of your recruiting process. If you are being too conservative in moving candidates through to the next step, you could be losing candidates with great potential, and if you don’t make a hire, you are back at square one. If you send too many candidates through, you risk the mistake of wasting valuable time. This is where this metric becomes key in saving time and money.
What you need to do: Look at the two metrics above along with additional underlying data to determine the conversion rates between stages. If you only bring three people in to interview and you don’t hire any of them, chances are you should be sourcing more candidates.
Bonus: While speed is important, velocity of hire can be even more telling, especially when attempting to hire for scale.
Metrics in recruiting are powerful and allow recruiters to better strategize. Using this data throughout your recruiting funnel can uncover opportunities and lead to the optimization of weak spots. Use these metrics as a competitive advantage over your competitors and become a data-driven team.
This article originally featured on the ClearCompany blog.