5 metrics to measure the ROI of your recruitment campaigns
The cost of a recruitment campaign is forever rising, and by failing to understand what metrics to measure, it could be costing your company even more than you realise. In fact, the average cost per hire has risen to $4,000 (£3,045). And cost per hire is only measure of ROI.
Here are 5 other metrics to measure the ROI of your recruitment campaigns.
1. Interviews per hire
The average time it takes to fill a position is 42 days. Of those 42 days, 22 days are spent interviewing. Today’s workplace is extremely competitive, and as a recruiter, your shortlist is now turning into a long list – there are more people to sit down and talk with.
For each job role you fill, you must measure how many interviews you conduct. Interviews require a lot of time, and if you’re failing to effectively shortlist, not only are recruiters wasting their time, but your hiring process will last longer, costing you money where you could easily save.
2. Turnover rate
If you’ve just hired 10 new employees, chances are three of them will quit within the first 90 days, according to a survey by Jobvite. Unlike the post-war workplace, loyalty to an employer no longer exists. Millennials are switching jobs many times throughout their careers and as a result, you’re losing some of your best candidates.
Turnover rate is a great measure of recruitment ROI, and the more time you spend rehiring for roles that were filled less than a year ago, the less time and money will be left in your pocket (and the less time you must focus on other roles).
3. Candidate satisfaction
Recruitment campaigns need to be efficient. Better yet, they must meet the needs of your candidates. If they don’t, you’re exposing the company to a lack of loyalty, a poor working culture and a high turnover rate. But with every recruitment drive, there are lessons to be learned and improvements to be made.
To improve the next campaign, ask your new hires for feedback. Where did you go wrong? How was the process? What could be done differently next time? This is invaluable first-hand feedback, the sort of feedback that will boost your ROI on future campaigns.
4. Source of hire
Understanding where can
didates are coming from is a crucial measure of recruitment ROI. Perhaps it’s costing you money to list your job on an online jobs board, if no candidates are finding you via that source, it’s a wasted expense.
By understanding how people are entering the recruitment pipeline, you can strip the fat and tailor your resources to these channels in future campaigns.
5. Offer acceptance rate
Offer acceptance rate is the difference between the number of candidates who were offered a job compared to those who accepted.
A low offer acceptance rate could indicate issues with your company’s compensation scheme (ie salary, workplace benefits and working hours). It could also tell you something about your employer brand. Our advice is to survey those who were offered a job but who said no and learn from them. The higher the offer acceptance rate, the higher the ROI.
Like every process in the workplace, recruitment must be an efficient and cost-effective process. Spending too long on things like interviewing will cost your company in time; not investing in feedback from new hires means you won’t make necessary adjustments for future campaigns.
To reduce costs, save time and improve your ROI, learn from your mistakes and keep the process as smooth as possible. A poor recruitment campaign will cost you both before and after you make a hire.