Wouldn’t it be fabulous if a company could hire the most suitable candidate without having to spend days and days interviewing lots of prospective employees?
Companies spend a lot of time and money on interviewing candidates. If none of them are suitable, then they have to start the process all over again. If a company is fortunate in finding the right candidate then also they have to wait for the candidate to join until the candidate joins them, the challenges of hiring are not over for them.
Here are the top reasons organisations are struggling to hire suitable candidates –
- Competition from other employers – Employer Branding
- The low shelf life of Top Talent
- Ability to reach Passive Job Seekers
- Candidates don’t have the right skills (technical, domain and soft skills)
So how does a company evaluate what’s working for them and what’s not?
Recruiting metrics are the key to assessing the robustness and effectiveness of organization’s recruiting process. It is incredibly vital to have measurable goals and data to track the performance. This shows where you stand as a company, particularly when you’re trying to make game-changing hires. Recruiting metrics enable you to understand where you should be allocating your time and budget.
Let’s take a look at some critical hiring ratios and learn the best ways to measure them:
Cost Per Hire
Cost per hire estimates the average cost incurred by a company on filling an opening from sourcing to on-boarding. It can either make or break the yearly budget of a company.
Time To Fill
Time to fill shows your hiring speed, and it boils down to how long a recruiter takes to fill an opening from the time of a listed vacancy. It is the total number of days taken from advertising a job opening to bringing a candidate on-board. It exhibits the productivity of the recruiter and the efficiency of the recruitment process.
Quality Of Hires
The quality of hire metric reflects the performance of the hiring team in terms of the quality of faithful candidates. It is the difference between several candidates and top choice candidates. It gives an idea to the company of whether recruiters are squandering their time and effort in search of top talent or making maximum utilization of available resources.
A Reality Check
Once organization has the key matrices defined to measure the performance they should do study the Conversion Rate. Conversion rate is the direct correlation between the number of candidates who were shortlisted in screening for further processing to the ones who accepted the offer and joined.
A complete analysis of what is working out and what’s not working out based on the conversion rate should be carried out. It would be wise to analyse the source of prospective employees to make decisions about future investments into right channels. The source of hire captures where most of your new employees come from, whether it is job boards, agencies, professional/social networks, or employee referrals.
The suggested Approach
The moment we talk about measuring something, it’s evident that data is involved. When it comes to measuring, data is vital. Once you gather all the data of your company, pick the most startling numbers and look for ways to improve them. Following a data-driven approach to hiring will give you access to some of the top talents in various industries.
AI/ML Based Screening
A data-driven approach leads to the use of data in the right way. Using IT systems that can pull raw data using AI and machine learning consistently and retain every data point is essential to improve the hiring ratio. AI/ML enables you to be more informed at what you do by compiling the correct data while helping you effectively sift through loads of data.
Application Tracking System
An excellent application tracking system helps you at every point of your hiring process. It begins from posting your job ad to notifying you in real-time as people apply to the entire journey of hiring.
Companies should use tools to assess the candidates on given skills. There are several tools available today to perform this effectively where one could assess technical, logical & reasoning and coding skills before proceeding for interview to avoid time and money wastage.
Lags in scheduling interviews add to your time to hire. Conducting multiple rounds of interviews kills a lot of time and consists of a lot of room for improvement. There are technologies available today for conducting video interviews which will help you screen the initial phase, which reduces your time drastically to hire and close the selection process.
Effective utilization of technologies and Forecasting Your Hiring needs well would certainly help you triumph.
An internal database of previously rejected candidates or a group of candidates you’ve pre-screened for specific roles helps you reduce your time to hire.
I would like to conclude it with a simple advice that when you deal with challenge of improving hiring ratio be cautious about
1) Cost of hiring and
2) Cost of wrong hiring
As companies end up spending huge money and also waste lot of time for each of wrong hiring.
Blog Written By :
Mr. Daya Prakash