5 Key Hiring Metrics for 2013
With the New Year swiftly approaching, many of us will be using the “traditionally quieter” hiring period at the end of this year to take stock of the key industry developments and market trends of 2012 in order to refine hiring approaches for 2013.
Evidence suggests that the times most certainly are a-changing in the world of HR, so what better time than year-end to take a look at some of the current hiring metrics that are being used to assess their relevancy, and to see if any new metrics need to be brought into play or further examined.
1. Source of hire
With there being so many different methods for hiring new staff, such as employee referrals, gamification and crowd-sourcing, it is more important than ever that you track source of hire to understand your most effective hiring channels and to establish whether key sourcing channels are being underutilized. Additionally, the recent shift toward more performance based or CPC job posting systems allow a better understanding of total cost per applicant and cost per hire.
The threat of recession still looms over many major economies, which means hiring teams will need to be able to demonstrate cost-effectiveness very clearly next year. There should clearly be some emphasis on the following metrics in 2013.
- Cost per hire
- Cost per hire as a percentage of average starting salary
- Cost of vacancy and money saved by reducing time to fill
- Revenue or productivity increase due to successful hire
3. Employee Referral rates
Employee referrals are one of the most influential forms of hire at the moment. Many industry surveys have shown that referred employees are hired quicker and stay longer than employees hired through most other channels, which means that in theory increasing your emphasis on referrals may reduce time to fill and empty desk time. For all these reasons, we expect this employee referrals trend to strengthen in 2013, as social networking technologies like LinkedIn continue to dominate the recruitment industry. Hiring teams should clearly be placing emphasis on tracking referral rates versus other sources of hire to see if they are fully utilizing what is currently thought to be the most effective form of hire.
4. Quality of hire
A recent report on a study by Futurestep found that hiring metrics are beginning to shift their emphasis to more sophisticated analysis. The most important metric of all was ‘performance of new hire’, followed by ‘new hire retention’, with the traditional metrics of cost to hire and time to hire being considered of lesser importance.
There is no doubt that in 2013 ‘quality of hire’ should really be the primary metric that hiring professionals are using to effectively manage the performance of their function.
5. Pipeline of talent
With an increasing focus on talent communities and strategies to engage with passive talent, (who are thought to be the lion’s share of the candidate market), employers should be developing actionable pipelines of quality prospects that can be reached out to at future times of need. You should be consistently assessing the size and quality of the prospects in your pipeline and the number of people that you actually recruit from the talent pipeline you have engineered. Ensure the effort you put into talent communities, passive talent engagement etc is turning into positive results.