How to measure talent acquisition success?

Any position needs KPIs to measure work efficiency. The same goes for the position of recruitment staff/specialist. Some businesses do not have clear indicators to evaluate employee capacity, making it difficult to analyze what is good, not good, or rewards and treatment are not commensurate. Faro Vietnam would like to send you detailed content about talent acquisition KPIs to evaluate recruitment efficiency at businesses in this article.

1. What is Recruitment KPI? How to measure talent acquisition success?

KPI is a strategic indicator, because through the evaluation results, businesses will have a direction to adjust so that the work results of each individual and each department will best meet the expectations of the business's development strategy in the future.
Simply put, recruitment KPIs are the criteria that businesses use to evaluate the work process of the human resources department. Based on these criteria, the management board can know whether their employees are working well or not, whether the efficiency is high or not, so that they can have a solution to handle and resolve the problem.

2. 7 important recruitment KPI indicators to evaluate recruitment effectiveness in the enterprise

For large enterprises, the need to recruit personnel for many departments is very important, so applying talent acquisition metrics/ indicators in evaluating work efficiency is very important. So what are the KPI indicators in recruitment? Follow the content below
 

KPI indicators to evaluate the recruitment effectiveness at the enterprise

2.1 Number of recruited personnel

An indicator that most clearly reflects recruitment effectiveness is the number of candidates recruited in reality compared to the set plan (The plan is the number of candidates needed to recruit).

Each year, enterprises often plan recruitment corresponding to the business plan. The recruitment department is responsible for recruiting according to the human resource plan. If the number of people recruited is not enough, or is slow to affect production and business, this can be considered a minus point of the recruitment department when it does not achieve the target plan.

This number is recorded in the Recruitment Efficiency Report. The recruitment report is usually divided by each recruitment position or each person in charge.

2.2 Total number of CVs in each recruitment period

The number of CVs in each recruitment period that the employer collects is also an indicator to evaluate the work efficiency of the HR person. This indicator reflects the number of candidates applying when a recruitment position is opened, the more candidates prove that the employer is doing a good job in attracting candidates, communicating and building a good recruitment brand.

If not done well from the beginning, the employer will find it difficult to recruit enough and recruit the right people to bring high value to the business.

2.3 Employee recruitment time

Corresponding to the number of candidates to be recruited, the business also sets a deadline to recruit people to fill the vacant position. Timely recruitment of employees is considered effective. On the contrary, when a position is left vacant for too long and the department has not found a suitable candidate, this is considered a weakness in the recruitment process.

For key positions in the industry, the time to hire may be longer than for mass positions. Depending on many factors that determine the successful recruitment time, but for each position, most leaders will consider and set a suitable deadline for the recruitment department to search for and recruit talent.

2.4 Recruitment costs

Recruitment costs are an important factor of matter to measure talent acquisition success. Recruitment costs are often calculated based on each recruitment round and each recruitment position. The lower the recruitment cost/employee, the more effective the recruitment campaign is.

Cost per recruitment = Recruitment budget (including salaries for HR staff) / Number of new employees working in the same period

When the cost per hire is too high, the recruitment department needs to review the stages in the recruitment process, such as which recruitment channels are effective to focus on exploiting, the conversion rate through each recruitment round is high or low to detect problems and find ways to improve.
 

How to measure talent acquisition success?

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2.5 Candidate satisfaction rate

The higher the candidate satisfaction rate, the more qualified the recruitment input is. If the first rounds have a large number of candidates applying, but the rate of qualified candidates is low, it means that the candidate attraction stage is opening the funnel too wide. Thus, the employer's work is more when having to screen many candidates, interview many people, wasting time, but the final result is not as expected.

If quality of hire is high, the employer can use this recruitment strategy for the upcoming recruitment rounds when recruiting for positions.

2.6 Rate of completion of assigned work

In addition to the candidate experience metrics directly shown through the recruitment results, managers also need to evaluate employee capacity based on the rate of completion of assigned work. In addition to direct recruitment work, recruiters must certainly take on many other tasks such as:

Recruitment planning.
Activities to enhance recruitment brand, communicate recruitment brand.
Create documents to serve the work.
Perform the work assigned directly by the manager.

If evaluating the capacity of the recruiting staff, do not forget the rate of completion of the assigned work, for example: is the work completed on time, is the work result good, is there improvement, creativity in the work? ...

2.7 Employee turnover rate

The rate of employees leaving during the probationary period is also one of the important criteria to evaluate the effectiveness of recruitment. The higher the employee turnover rate, the more it proves that right from the recruitment stage, HR did not find the right candidate profile, recruited the wrong person, leading to a waste of time and resources of the business.

If the situation of leaving during the probationary period is too high, the business needs to consider re-evaluating its recruitment process.

Above are the KPI indicators to evaluate the recruitment effectiveness at the enterprise. Wish you successful application and reap many sweet fruits in the upcoming recruitment campaigns. In addition, in order to improve recruitment efficiency, reduce costs and create a source of quality candidates, please contact us for more information.

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