Talent Acquisition (TA) is a critical function for any organization. It is responsible for finding, attracting, and hiring the best talent to meet the company's needs. To ensure that TA efforts are effective and efficient, Talent Acquisition (TA) leaders need to track and measure key performance indicators (KPIs).
This blog post will discuss 21 KPIs that TA leaders can use to evaluate their recruitment efforts. We will also provide tips on how to improve each KPI.
Candidate Response Rate
This KPI measures the percentage of candidates who respond to your outreach efforts.
To improve this HR KPI, you can:
Use more targeted outreach methods
Personalize your outreach messages
Follow up with candidates who do not respond
Formula: (Number of Candidates Who Responded ÷ Total Candidates Contacted) x 100
Application Response Time
This KPI measures the time it takes you to respond to candidate queries and applications.
To improve this HR KPI, you can:
Automate your response process
Assign dedicated staff to handle candidate inquiries
Set clear response time expectations
Formula: Completion time of the response - The initiation time of the query or application.
Time-to-Fill
This KPI measures the number of days it takes to fill an open position.
To improve this HR KPI, you can:
Streamline your hiring process
Use data to identify bottlenecks
Improve your sourcing and screening processes
Formula: Final date for completing the hiring process - Date the job requisition is initiated
Cost-per-Hire
This KPI measures the cost of filling one position.
To improve this HR KPI, you can:
Negotiate better rates with vendors
Use technology to automate tasks
Reduce the number of interviews per hire
Formula: (In-house + outside recruitment expenses) ÷ Overall number of hires
Cost of Vacancy
This KPI measures the amount of money lost due to an unfilled position.
To improve this HR KPI, you can:
Reduce the time it takes to fill open positions
Increase the number of qualified candidates in your pipeline
Use data to identify the most critical positions to fill
Formula: Daily average revenue generated per employee x Average time to hire
Interview-to-Offer Ratio
This KPI measures the number of interviews conducted per offer made.
To improve this HR KPI, you can:
Improve your interview process
Use data to identify the best candidates
Make faster hiring decisions
Formula: Total number of interviews held ÷ Count of offers made
Offer Acceptance Rate
This KPI measures the percentage of accepted job offers.
To improve this HR KPI, you can:
Make competitive offers
Sell the company and the position
Follow up with candidates who decline offers
Formula: (Total number of offers accepted ÷ Total number of offers issued) x 100
Internal Mobility Rate
This KPI measures the percentage of internal hires.
To improve this HR KPI, you can:
Invest in employee development
Create internal mobility programs
Communicate career opportunities to employees
Formula: (Count of internal hires ÷ Overall number of new hires) x 100
Requisition Aging
This KPI measures the waiting period between job posting and filling.
To improve this HR KPI, you can:
Streamline your hiring process
Use data to identify bottlenecks
Improve your sourcing and screening processes
Formula: {(Current Date - Posting date of the job) ÷ No. of days to fill the position} x 100
Sourcing Channel Effectiveness
This KPI measures the percentage of hires from each recruitment channel.
To improve this HR KPI, you can:
Use data to identify the most effective channels
Diversify your sourcing channels
Optimize your sourcing efforts
Formula: (Total no. of hires sourced from a specific channel ÷ Complete no. of hires) x 100
Recruitment Channel ROI
This KPI measures the return on investment from each recruitment channel.
To improve this HR KPI, you can:
Track the cost and performance of each channel
Focus on channels with the highest ROI
Experiment with new channels
Formula: (Revenue generated from hires through the channel - Expenses related to the channel) ÷ Expenditures for the channel
Retention Rate
This KPI measures the percentage of employees retained over a period.
To improve this HR KPI, you can:
Invest in employee development
Create a positive work environment
Offer competitive compensation and benefits
Formula: (Total number of employees at the period's close ÷ Total number of employees at the start of the period) x 100
Diversity Hiring Rate
This KPI measures the percentage of diversity hires.
To improve this HR KPI, you can:
Develop a diversity and inclusion strategy
Partner with diversity organizations
Expand your sourcing efforts to include diverse talent pools
Formula: (Count of diverse hires ÷ Overall number of hires) x 100
Time-to-Interview
This KPI measures the number of days it takes to schedule an interview.
To improve this HR KPI, you can:
Use scheduling tools
Assign dedicated staff to scheduling interviews
Set clear expectations for interview scheduling
Formula: Interview scheduled date - Application submission date
Application Dropout Rate
This KPI measures the percentage of abandoned applications.
To improve this HR KPI, you can:
Streamline your application process
Use mobile-friendly application forms
Provide clear instructions
Formula: (Count of abandoned applications ÷ Overall number of applications) x 100
Offer Drop-off Rate
This KPI measures the percentage of candidates who decline job offers.
To improve this HR KPI, you can:
Make competitive offers
Sell the company and the position
Follow up with candidates who decline offers
Formula: (Count of offers declined or retracted ÷ Total count of offers issued) x 100
Candidate Experience Rating
This KPI measures the candidate's recruitment process experience feedback.
To improve this HR KPI, you can:
Gather feedback from candidates
Make improvements based on feedback
Communicate with candidates throughout the process
Formula: Overall sum of feedback scores from candidates ÷ Total candidate count
Interview Effectiveness Score
This KPI measures the overall effectiveness of the interview in selecting the best hires.
To improve this HR KPI, you can:
Develop a structured interview process
Use behavioural interviewing techniques
Provide interviewers with training
Formula: Calculated by aggregating multiple relevant metrics into a single score.
Candidate Referral Rate
This KPI measures the percentage of candidates from referrals.
To improve this HR KPI, you can:
Implement an employee referral program
Reward employees for successful referrals
Promote the referral program
Formula: (Count of hires through referrals ÷ Total count of new hires) x 100
Candidate Conversion Rate
This KPI measures the percentage of career site visitors turned candidates.
To improve this HR KPI, you can:
Optimize your career site
Use targeted advertising
Provide valuable content
Formula: (Total no. of visitors to the career site ÷ Aggregate no. of candidates) x 100
Quality of Hire
This KPI measures the performance ratings of new hires.
To improve this HR KPI, you can:
Develop a comprehensive onboarding program
Provide new hires with the resources they need to succeed
Set clear performance expectations
Formula: Sum of performance ratings for all new hires ÷ Count of new hires evaluated
By tracking and improving these 21 Human Resource KPIs, Talent Acquisition leaders can ensure that their recruitment efforts are effective and efficient.
Additionally,
Ensure to use data to make informed decisions
Set clear goals and objectives
Communicate with your team
Be patient and persistent
In Conclusion
These 21 KPIs listed in this blog have been inspired by Unstop’s post & are just a starting point for TA measures. TA leaders should identify the KPIs that are most important to their organization and track them regularly. By doing so, they can ensure that their recruitment efforts are aligned with the company's goals and objectives. We hope this blog post has been helpful.
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