To win at the ever-changing recruiting game, you’ll need new ways to measure success. Below are three current metrics to upgrade your staffing strategy.
Use “Source of Influence” instead of “Source of Hire”
Source of hire surveys candidates to see who or what leads them to you. Usually, this counts the very last thing that directed a candidate to you or your client.
Source of influence analyzes a candidate’s job search journey and looks at how relationships among multiple sources influence a candidate’s decision to apply.
In 2016, a candidate’s job search isn’t linear — on average, a jobseeker uses 16 different resources to help them. They read reviews on Glassdoor. They click on “Contact Us” with questions. They chat over happy hour drinks with a friend of a friend to ask, Do you like working there?
Candidates do their homework. Are your recruiters doing theirs?
The road to big decisions is full of influential touchpoints. These touchpoints, like your recruitment strategies, work in relationship with one another. You’ll want to use metrics on the source of influence to figure out what those positive relationships are to help you focus resources.
Use “Recruiting Cost Ratio” instead of “Cost Per Hire”
Cost per hire is a metric that evaluates the internal and external costs of filling open positions within a fiscal year.
Recruiting cost ratio includes compensation of the hires in its calculation.
Filling the demand for skilled workers will only get harder. A skilled software developer can get up to 20 calls a day from recruiters like yours. Scoring one game-changing senior executive takes a lot more effort than finding five interaction designers right out of college.
Attracting talent takes innovation, tenacity, and money. It takes coffee dates, airfare for out-of-town candidates, and the mediation skills of a district attorney.
But great leaders know that the return of all the effort — money, time, and sweat — is worth it. Recruiting cost ratio recognizes that the resources that go into finding well-compensated and competitive talent are an investment.
Use “Quality of Hire” instead of “First-Year Quality”
First-year quality measures hired candidates who are still with a client organization one-year post-hire.
Quality of hire calculates retention along with other variables, such as manager satisfaction and cultural fit, these mirror qualities an organization values.
Long-term success, for you and your clients, means obtaining the best quality of candidates. Many companies are beginning to categorize staff talent as “intangible assets,” which are, by definition, difficult to measure. But many, like UC Berkeley’s Haas School of Business, are trying to understand how to quantify this aspect of entrepreneurial success.
One such endeavor evaluated how employee talent impacts a company’s market value. The study found that intellectual capital drives over 80 to 90 percent of enterprise value.
An employee’s value goes beyond how long they’ve worked at a company. The employees you want (and that your clients want to keep) can add to a company:
- Bringing in revenue
- Engaging with the company community
- Generating quality work
- Keeping managers happy
- Driving company growth and other variables
For the quality of hire metric to be useful, you and your clients should identify the pre- and post-hire qualities all successful candidates should have.
Do you know the latest social recruiting trends? Find out here.
Caitlin Delohery is the Editor-in-Chief of StaffingHub.