from one of the top Recruitment Agency & Outsourcing Company in Thailand & Indonesia
RECRUITMENT AND SELECTION INDICATORS: WHAT THEY ARE AND HOW TO APPLY
07/08/2019
Fischer & Partners Executive Search | Outsourcing Company | Recruitment Agency in Thailand
Recruitment and selection indicators are important shortcuts to hiring better and faster based on truly reliable data. In times of competition for the best talent, your business needs strategic HR that can measure and manage its selection processes.
But how do you set the right metrics for recruitment and selection?
Just as important as measuring results is knowing what information is useful for decision making, especially in HR. After all, it's not enough to have exact numbers and percentages: you need to know how to use data to speed up selection processes.
You will find this and other answers in the following topics:
What are recruitment and selection indicators
What are the main indicators used
How to apply recruitment and selection indicators in the company
Technological innovations for recruitment and selection.
Want to learn how to use the indicators? Then read on and create your strategy.
What are recruitment and selection indicators
Recruitment and selection indicators are essential metrics for assessing the effectiveness of selection processes and improving talent attraction and retention. In general, indicators act as storytelling numbers because they provide data on the value, size, and representativeness of a variable.
Every company should use these metrics to control and improve process quality in HR and other areas because the measurement is critical to tracking results. With changes in Human Resources, recruitment and selection indicators are important allies in the strategic evolution of the sector.
If HR was once limited to bureaucratic and administrative processes, today people management is a key component of any business, capable of generating valuable information and value. The results of the 2018 HR survey in Thailand, conducted by Fischer & Partners Executive Search & Recruitment, which has the objective to diagnose the advancement of strategic HR in Thailand, and for this, over 1500 professionals in the area were interviewed.
The good news is that 61% agree that HR actively participates in the company's strategic decisions, reporting directly to the CEO. But to provide useful information and consolidate its leading role in business, HR needs to measure its results consistently.
After all, measurement is the only way to observe and verify the evolution of processes, especially in recruitment and selection. This is why R&S indicators play a crucial role in HR development as a business partner, as they reveal the quality of selection processes and hiring. Remember that what is not measured cannot be managed, and indicators are the most reliable source for HR management.
Key Recruitment and selection indicators
There are several recruitment and selection indicators, ranging from job vacancy popularity to hiring quality. Let's know some of the most used in HR:
Vacancy fill time
Vacancy fill time is an indicator that measures the average recruitment time for a particular job group or company selection process. The calculation can be made by summing the number of days spent in each process divided by the number of R&S processes performed in the company. In this case, the total number of days is counted from the job opening until the candidate's final hiring.
The average cost per admission
The average cost per admission is an essential indicator for measuring the expenses of each selection process and determining how much the company's hiring costs.
The calculation depends on company-specific expenses, but the most common costs are:
Communication expenses: ads, job site subscriptions, platform hiring, publication boosting, etc.
Consultant fees: hiring an expert consultancy/Executive Search Firm/Recruitment Agency/Staffing firm
HR costs: The hourly value of professionals multiplied by the time spent planning and executing the selection process.
So just add these costs and divide the total amount by the number of admitted to find out the average cost per admission or hiring.
New hire turnover
The newly hired exit or turnover rate measures the effectiveness of the company's hiring and onboarding process. The basic formula is the division of the number of employees who left the company in the first year of admission by the number of employees in the period. If we consider only those who left by their own choice, we will have the dropout rate in the first year. On the other hand, if we take only those who were laid off, we will have the layoff rate in the first year. All of these metrics provide an important insight into HR's ability to retain talent as well as the true quality of successful candidates.
The satisfaction of the admitted with the selection process
The admission satisfaction rate with the selection process is also fundamental to evaluate the efficiency of the R&S. This indicator can be calculated through surveys applied immediately after hiring, based on criteria such as job attractiveness, selection time, feedback throughout the process and clarity of the offer.
Qualified Candidate Index
The Qualified Candidate Index shows the company's ability to attract the right talent with its recruitment and selection strategy. To calculate this indicator, simply record the total number of candidates per vacancy that can advance to the final selection steps. Then you can compare the rates of qualified candidates per job and identify which ones attracted the best professionals.
Hiring Funnel Performance
The selection process has several steps in the hiring funnel, and each must have its performance measured.
Here are some examples of indicators to measure the efficiency of each phase:
Recruitment: Form abandonment rate and job applications
Screening: Ratio of Resumes Selected to Submissions
Assessment: Relationship between Selected Resumes and Successful Candidates at Initial Assessment
Interviews: Number of candidates arriving at interviews about applications
Job offer: number of offers about the number of hires.
Quality of hires
The quality of hires is an indicator that starts with the performance evaluations in the first year of the professional. Given that wrong hires generate considerable losses, it is essential to evaluate the performance of new hires. It is up to people management to conduct the necessary tests to measure individual evolution, determining whether the selection process has met its goal or not. With this data in hand, you can measure your R&S success rate by dividing the number of successful performers by the total number of hires.
How to apply recruitment and selection indicators in the company
Before applying recruitment and selection indicators within the company, you must ensure that the information obtained will be consistent and reliable.
For this, there is the S.M.A.R.T methodology, which starts from the acronym:
Specific
Measurable
Achievable
Relevant
Time-Based.
Therefore, you need well-defined, easy-to-measure, obtainable indicators of clear importance and within a specific time frame. For example, when calculating the average cost per admission, all selection process expenditures must be accurately recorded to ensure the correct values or the indicator goes down the drain. It is also critical to compare the right periods and define which indicators need quarterly, monthly, weekly, or per-process records.
There are also indicators with qualitative data, which present conceptual diagnoses rather than numbers.
For example, in the satisfaction survey with the selection process, there may be open-ended questions that require the compilation and analysis of candidates' discursive data.
Recruitment and selection of technology
If you were wondering how to record and track so much recruitment and selection data, the answer lies in technology. After all, there is no point in having the best R&S indicators if you are unable to cope with the resulting large amount of information.
Fortunately, 91% of HR professionals already consider the use of key technology for strategic HR, according to study. Also, 51% of companies already use recruitment and selection software to streamline their processes. So-called Applicant Tracking System (ATS), for example, are systems that automate screening and facilitate communication with applicants, freeing professionals to focus on process intelligence. Numerous tools make recruiting and selection easier, from gamified online testing to virtual reality platforms to group dynamics. At the forefront of these technologies are HR Techs, which are startups focused on technology solutions for HR.
Fischer & Partners, for example, innovates in recruitment and selection with its marketplace of high-level talent, pre-selected according to the profile desired by the company. The company uses technical testing, artificial intelligence, and insightful analysis to select the best developers, data scientists, UX / UI designers, and business professionals. The result is a reduction of up to 70% in hiring time and a significant reduction in turnover, which you can see in the recruitment and selection indicators. With advanced technologies and data intelligence, you have complete freedom to create your indicators and resources to keep track. After all, we are living the age of knowledge, and the future of HR lies in the information domain.