Candidate sourcing metrics aren’t just about ‘open positions vs positions filled’! The ultimate goal of candidate sourcing is to build a competitive edge by bringing in great talent, at a wise budget. To do that, you need to run a complete diagnosis of your sourcing process and find every scope for betterment.
A study by LinkedIn shows that the biggest challenge recruiters have to beat is the competition for talent. That’s why you constantly (i.e. every other day) have to be doing something better, different and efficient to stay ahead.
This blog highlights the diagnostic metrics you should track and the actions you should take to pull them in your favour.
Metric 1 : Time to hire by source
The metric is the time taken to hire a candidate from the time the candidate was sourced.
By tracking this metric, you can:
Moving this metric:
Metric 2 : Cost per hire by source
Cost per hire by source = Total internal and external recruiting costs / Total number of hires from the source in the same period
Internal recruiting costs can include recruiter salaries, employee referral bonuses, interview costs (number of hours X hourly salary of interviewer or hiring manager) and fixed cost such as physical infrastuture (e.g, office rent).
External recruiting costs will cover your agency fees, advertising costs (e.g., job boards), technology costs (e.g., recruiting software), career fair / recruiting event costs, travel costs, facilities costs, relocation costs and signing bonuses.
“Remember the goal of tracking this metric is not cost cutting. It is to figure out how, when and where to allocate your budget to attract and hire great talent.”
For example, if you invest in a new software, or try a particular advertising method, your cost per hire might see a spike. But in the long run the new software or approach will win the metric in your favour.
Improving your cost per hire:
A study by SHRM reveals that the average cost-per-hire for companies is $4129. However, every firm is unique in terms of their needs, sources and budgets. So, it is hard to put an ideal figure on this metric. While helping your cost per hire, your objective is a cost per hire curve that is steady and well-justified.
Moving this metric
Note : Your cost per hire can also be inflated by the type of role you are hiring for and job boards you choose to advertise with.
Metric 3 : Effort for conversion
Roughly, the number of conversations and interviews that happen before a candidate is hired from a particular source.
If your ATS has the ability to track all conversations with a candidate from a single place, compare how much effort goes into converting candidates from different sources.
Actions to take based on this metric:
Metric 4: Funnel throughput of the candidate pipeline
Funnel throughput of the candidate pipeline is the conversion rate at each recruiting stage.
The metric helps you with insights on the quality of sourced candidates. It makes more sense for roles in which you hire many or hire often.
Observe which source has a higher throughput in the pipeline – referred candidates, sourced candidates, applicants or any other. If referral drives are bringing in good candidates for you then bring it to the attention of your hiring team members and direct your efforts there.
When you know joboards are working well for you, drill further down and identify the specific ones. For us, Linkedin i had higher conversion rates when compared to all the other job board software we were investing in.
The metric can also be read through job status, job role, job type, experience, recruiter, source or medium for deeper and actionable insights.
Moving this metric
Hire: Offer accepted
Note : The main goal of moving this metric is not to increase your throughput but to understand the quality of the sourced candidates. The other objective could be to have a ‘healthy’ throughput. Meaning, you don’t want to push a lot of candidates through your pipeline without necessity, this would only exhaust your resources rapidly. But at the same time you need to have a good number of candidates organically going through your pipeline because it indicates the quality of candidates.
Metric 5 : Offer declined reasons
It’s a lot easier and beneficial to get a hired candidate to accept your offer than to go hunting again. Hired candidates turn down offers for various reasons. Pull out a report for why your offers were rejected and find how you can persuade them to take it.
We observed that ‘required to relocate’ was the primary reason our offers were rejected by candidates who we sourced from other cities. Understanding this, we focused on policies that motivated candidates to relocate. We covered their moving cost and gave out an attractive signing bonus.
Some companies even go as far as hiring an agency to help them move, find their spouses a job in the same city and put their kids in school.
We hope you found this useful. These metrics are not mutually exclusive. When you study them side by side, they’ll point you to the best candidate sourcing decisions you’ll ever make. Additionally, you can always get feedback from your hiring managers, candidates and your sourcing teams (who play vital roles in the process) to get their perspectives and ideas to improve your candidate sourcing.
May the metrics be ever in your favour!
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