Recruitment Metrics and Employee Onboarding Process

(Intro IVR : 15 sec)

Hello, friends!

As a recruitment professional it is very important that you check the recruitment effectiveness time and again.

Now to identify this effectiveness some metrics are defined in each organization. Let us go through those metrics and see how they apply.

The first metric is Time to fill.

So basically it talks about how much time you can hire after finding a new candidate.

So generally it can be measured by the number of days between publishing a job opening and hiring the candidate.

So the day when you published your job opening and when your candidate has come to your organization between that how much time has gone.

Time to fill is generally influenced by the supply and demand ratios because there are few specific jobs for which you may not get the candidates easily.

So in that particular aspect at what speed does the recruitment department operate that can be identified from time to fill.

This is a very good metric and provides business planning and a realistic view for any manager to assist for how long it will take to get a replacement.

Depending on your notice period, have you negotiated notice period with the candidate if you operate then based on this particular criteria you can identify how long you have to hold a candidate once that person resigns.

Time to hire. Time to hire basically states that the number of days between candidates approaches to the time the candidate accepts the job.

Suppose candidate is identified on X day and approached and candidate accepts the job after X plus twenty five days.

So in twenty five days his Selection process, Interviews, etc. etc. has been completed and after that candidate has accepted the job.

So if we see overall these metrics measure the time it takes for someone to move through the hiring process once they have applied.

So the hiring process how long it takes we will come to know from these particular metrics.

So again it is a very important metric which shows how the recruitment team is performing in these and this particular metric we popularly call as time to accept.

Next we will talk about Source of hire.

So generally we hire from multiple sources and we have to see which source is most effective in terms of getting the right hire.

So we will track those sources which attract new hires to our organization and from these particular metrics we can keep track of the effectiveness of different recruitment channels.

Like our Job board, Company's career page, Social media, and Sourcing agencies, then we start measuring their effectiveness, then we will know which source is yielding the most benefit to the organization.

Next we will talk about First year attrition.

First year attrition is also called Infront attrition.

Because it is a major indicator of hiring success.

If any candidate leaves in the first year, then the first thing is they are not productive. Second, rehiring has grown too much an additional cost.

Overall, if we look at this, we can consider first year attrition in two ways.

One is Managed first year attrition.

What happens in this because of poor performance is the hiring manager puts the candidate on either the performance improvement plan or he/she goes for it.

Unmanaged is where the candidate left the organization of his own because probably they are not getting adapted with the culture or the policy of an organization are very harsh or somewhere the mindset or a common ground is not getting the candidate within the organization.

So this is first year attrition.

Again we have to keep in mind that in which way we keep it under control so that we can easily manage both the productivity and the cost.

Then we talk about the quality of hire.

Quality of hire generally we identify by the performance rating of new employees.

Candidates who get high performance ratings in the first year itself are an indicator of hiring success while the opposite holds true for candidates with low performance ratings.

So if you are bringing a candidate and that proves to be an asset for the organization in the first year itself then you have hired a very good quality of candidates.

Now let's talk about Hiring Manager Satisfaction.

So when we talk about quality of hire then with that Hiring Manager Satisfaction is another very important recruiting metric so that we can identify the success rate of our recruiting process.

Then it basically means and as you got the title if the hiring manager candidate is satisfied and the candidate is performing very well and the candidate has fit well within the team so of course the hiring manager is also satisfied.

So to be seen overall if all is a positive indicator then the candidate is a successful hire and if anything is a red flag, then we may rework our process there.

Next is Candidate Job Satisfaction.

Hiring manager is satisfied but are the candidates satisfied?

So generally there are thirty, sixty, ninety days of feedback which we can track whether the candidate is satisfied in a new job or its purpose is to track whether the expectations that were set during the recruiting procedure are matching the reality or not.

A low candidate job satisfaction highlights mismanagement of expectations and incomplete job descriptions.

So if you want to avoid this ensure that your job description is inline with what the reality looks like.

Next is Applicants per Opening.

So generally applicants per hire or applicants per job opening indicates the popularity of a job.

If the large number of applicants are applying for a particular type of job then it means the demand is very high.

Either the job description you have written is too broad.

So the number of applicants per opening is not necessarily an indicator of the number of suitable candidates.

You enter a particular job opening, if a thousand people have applied for it so that is an indicator of popularity.

Probably only ten out of a thousand people will be valid candidates.

So this metric doesn't tell you about suitability, which is his disadvantage. Then comes the selection ratio.

Selection ratio basically tells how many candidates got hired with respect to the total number of candidates who have applied for the job.

From the selection ratio we also get to know that whoever we have in house measures to select people, then how stringent they are and also if there is a job popular, then against it what is the selection rate.

Next we will talk about the cost per hire.

Cost per hire is nothing but total recruitment cost divided by the total number of hires. Total recruitment cost encompasses the total internal cost and total external cost. In internal cost which items are included?

Time spent by the recruiter, Time spent by the manager, New hire onboarding time, Loss Productivity and Other internal costs.

External cost included in that is an advertising cost, agency fees, candidate expenses, new hire training cost and other external costs as applicable.

So all these costs when we include the total number of hires, then we get to know how much money we spent to hire one candidate.

So that's why when I tell you again and again that to hire a particular candidate it costs a lot to an organization and if he does not stay with the organization for a long time or does not give the

benefit of that cost, then it becomes the very expensive matter for an organization because same cost organization will have to incur again to hire an another candidate.

Then comes the Offer acceptance rate.

It is nothing but a number of offers accepted upon the number of offers made. It is a simple ratio.

It tells you how many serious candidates approach your organization every day or how logical and rational your offer is.

Then this is your offer acceptance rate.

Next we will talk about Sourcing channel effectiveness.

So we talked earlier also which sourcing channel is so effective, it tells us which channel we should continue with.

So generally we measure it through on the basis of conversion per channel and in percentage terms we generally measure it so that we can evaluate the effectiveness with the same parameter.

So suppose, we talk about social networks, LinkedIn, Twitter, Facebook and how many total candidates have been acquired, how is their behavior, we get a complete dashboard over here through which on the basis we can quickly judge which channel is effective and what we need to work on and should be dropped.

Then comes the sourcing channel cost.

So what is the sourcing channel cost?

Ad Spent per platform divided by number of successful applicants per platform.

So suppose if we are putting a job opening ad on linkedin or facebook then how much overall cost we get.

Suppose for Facebook we have X amount and linkedin Y amount and for Twitter Z amount, so suppose if we are identifying for Facebook then the cost X divided by number of successful applicants per platform.

So how many successful applicants we got from Facebook.

So suppose if we got twenty five applicants from there, then X divided by twenty five.

Similarly for linkedin and similarly for twitter we can find the sourcing channel cost by identifying like this and see which channel is the most viable for us in terms of cost.

Next is the Cost of getting to optimum productivity level what we call as OPL.

So the cost of getting to the optimum productivity level under which it is involved is the total cost of getting a candidate up to speed.

This includes onboarding cost, training cost, the cost of supervisors, and co-workers involved in on-the-job training, and so on and so forth.

Many things are involved under this.

Generally a particular percentage of the employees salary is included to reach the optimum productivity level to what is the cost involved?

So until they don't hit hundred percent OPL, this calculation goes on till then. So friends, with this we have reached the end of this topic.

Till we have seen the complete recruitment process.

Now let's talk about Onboarding.

Once the candidate is appointed, it is initiated in the joining organization, then what are the things involved in onboarding. Let's have a look.

First of all you have to create excitement for the candidate that the person is joining the team.

So through different emailers or else you can be in continuous touch with the candidate so that candidate thinks that yes I am being taken care of even before I joined the organization.

You can send a welcome email to the candidate on their personal mail id so that they feel the part of an entire organization.

Then comes the first day of orientation.

Make sure it is a memorable experience for the candidate.

On the first day, you can announce the new hire to a larger organization or you can put an announcement on a bulletin board or through email all the stakeholders, whomever the people of the organization are, give them all employee communication.

Then you have to ensure that there are one on one schedules with all the stakeholders of the candidate and the initial meeting is set up.

So that the candidate also gets to know his stakeholder expectation and the stakeholders also know what is the performance potential of the candidate.

After the candidate starts settling down you can assign them their first project and ensure that the transition to their normal team cadence is very smooth and a memorable one for the candidates.

By the end of the onboarding process and the transition comes in the normal team cadence then we have to see how the candidate has cherished the initial experience and have adapted the processes and whatever projects of the new organization.

The onboarding process is very important not just from the employer branding point of you but also to ensure that the candidate remains within your organization for a very long time.

And with this we close this topic.

If you have any question or query then you can share it with your co-learners by clicking on the discussion button and you can share your experiences there.

Thank you!

(Outro : 15 sec)