HR Metrics to Track and Improve to Make More Placements

Posted September 21, 2019

Data analysis is a robust tool, offering hard truths about business processes, finding key trends and exposing previously unknown pain points.

Historically, attempting to connect metrics to HR functions has been difficult. Gauging these difficult-to-quantify aspects of HR is something most companies are still trying to figure out. Regardless of the widespread acceptance that analytics are valuable in business, most companies are not fully engaged in HR analytics.

Although metrics are being used to fix an array of business issues, the analysis of talent acquisition is still an emerging area. Below is a brief set of HR metrics to bear in mind when refining your recruitment tactics.

Time to Fill

Time to Fill is a measure of the amount of time between when a job becomes open to the time the job is filled; the time it takes to make a hiring decision. This is an essential metric, as investing too much time in hiring costs money, resources and even good candidates.

When you take a good look at your Time to Fill metrics, you should begin to get a sense for your hiring inefficiencies or any unnecessary steps in the process. In a 2017 report by the Society for Human Resource Management (SHRM), the average Time to Fill was 36 days.

Referral Rate

The Referral Rate is a metric used to indicate the number of people within an organization that are referring people they know for open positions. Most companies will say employee referrals produce the highest caliber of candidates. Hiring via referral is also a cheaper, quicker and more efficient way to hire than posting to a job board. Hence, a small investment in an employee referral program can produce major returns.

Cost per Hire

This metric is the term for all costs linked with staffing a position and can include staffing firm costs, advertising and associated labor costs. Cost per Hire data can assist with budget decisions and establish benchmarks for the hiring process. In the 2017 SHRM report, the average cost per hire was more than $4,400.

Source per Hire

Indicating where hires come from, Source per Hire is an important metric for refining a recruitment strategy and allocating resources to various recruitment channels. When measuring Source per Hire, it is important to clearly identify each source.

Turnover Rate

This looks at the pace which employees are leaving the company, either of their own accord or involuntarily. In the 2017 Customized Human Capital Benchmarking Report by SHRM, the average annual turnover rate was is 18 percent.

While you can compare the turnover rate of your organization to that of other companies, it is also useful to compare the turnover rates of various departments within your organization. This can offer insights on leadership styles, workload, job duties and opportunities for career growth.

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At Ambassador, we support our clients through targeted, custom talent acquisition strategies. Please contact us today to find out how working with a full-service staffing firm can boost talent acquisition at your organization.