To win today’s talent war, recruiting teams must make the right adjustments to their recruitment strategies at the right time. This is why it’s more important than ever for recruiting teams to have clear visibility into the talent pipeline and recruitment process. Getting the necessary data and metrics in place is the most critical step to make this vision a reality.
However, while there is no shortage of measurements, not all recruiting metrics are equally important and helpful. That is why we handpicked these top 6 recruiting metrics from our library of over 620 HR metrics to help HR executives better use data to improve their recruitment strategies:
Internal Hire Rate
Time to Fill
Time to Start
Net Hire Ratio
Cost per Hire
Internal vs External Hire Ratio
Using Analytics to Improve Recruiting and Onboarding
1. Internal Hire Rate
Internal Hire Rate refers to the number of positions filled internally via promotion, transfer, or other moves as a percentage of the total number of all new hires. A new hire is counted as an internal hire when the organization fills the open position with an existing employee. This can be both lateral and vertical movements of employees across the organization. Learn more at HCMI’s Beginner Guide to Internal Hire Rate.
Internal Hire Rate = Total Internal Hires / Average Employee Headcount in the Period
Example: If the Internal Hire Rate is 40%, it means that 40% of all new hires are filled internally.
2. Time to Fill
Time to Fill measures the average total number of calendar days from the date a job requisition is posted to the date a new hire accepts the position. Recruiting executives can use this metric to quickly gauge the effectiveness and efficiency of their recruitment process. This metric can also be used as a reliable estimate on long it would take to fill an empty position. Learn more at HCMI’s Beginner Guide to Time to Fill.
Time to Fill = (Sum of (Offer Acceptance Date - Position Vacancy Date)) / Total New Hires
Example: If the Time to Fill is 14, it means that, on average, it takes the recruiting team 14 days to find, interview, and get a new hire to accept a position.
3. Time to Start
Time to Start captures the average total number of calendar days from the date a job becomes vacant to the date a new hire starts work in the new position. Like Time to Fill, this metric can serve both as a KPI and an internal benchmark for the recruiting team. Learn more at HCMI’s Beginner Guide to Time to Start.
Time to Start = (Sum of (Position Hire Date - Position Vacancy Date)) / Total New Hires
Example: If the Time to Start is 35, it means that, on average, it takes the recruiting team 35 days to find, interview and get a new hire to start a new position.
4. Net Hire Ratio
Net Hire Ratio compares the number of new hires and the number of terminations within the same period. The recruiting team can use this metric to measure the net headcount growth for a given period. Learn more at HCMI’s Beginner Guide to Net Hire Ratio.
Net Hire Ratio = Total New Hires / Total Number of Terminations
Example: If the Net Hire Ratio is 1.4, it means that the organization hired 1.4 new employees for every 1 turnover during the last period.
5. Cost per Hire
Cost per Hire measures the total amount of dollars spent on recruiting new hires. They include the internal expenses of running a recruiting department and external expenses associated with hiring activities such as travel reimbursement, testing fees, external agency fees, etc. The majority of recruiting costs typically relate only to external hires, but some costs may be allocated to internal hires, depending upon recruiting activity analysis. For more details on what input should be included in Cost per Hire, check out HCMI’s Beginner Guide to Cost per Hire.
Cost per Hire = Total Hiring Costs / Total New Hires
Example: If the Cost per Hire is $3,500, it means that, on average, it costs the organization $3,500 to recruit a new hire.
6. Internal vs. External Hire Ratio
Internal vs. External Hire Ratio compares the total number of internal hires versus the total number of external hires within a time period. Recruiting managers can use this metric to quickly gauge how many percentages of their new hires are from internal and external sources. Since internal hires are more likely to be high performers, highly engaged, and less likely to leave, it’s important that hiring managers keep a close eye on this metric.
Internal vs. External Hire Ratio = Total Internal Hires / Total External Hires
Example: if Internal vs. External Hire Ratio is 0.4, it means that there are 0.4 internal hires for every external hire.
Benchmark Your Recruiting Metrics
Without accurate benchmarks, it is difficult to know if a particular metric result is good or bad. Benchmarking recruiting metrics provides context and strategic insight, allowing for a better interpretation of your recruitment reports and performance.
We compiled a comprehensive list of 60 recruitment benchmarks every HR team needs to know. These are benchmark data handpicked from around the web.
If you’re looking for additional recruiting benchmarks, HCMI’s database contains benchmarks for over 500 HR metrics and covers all stages of the talent management lifecycle. This database can be filtered by various factors such as organization type, workforce size, industry, and diversity and inclusion factors.
Why Many HR Analytics Initiatives Failed
The inability to provide evidence-based answers to compelling workforce questions facing business leaders is often quoted as the main reason why many HR Analytics initiatives have failed in the past. Recruiting Analytics is no exception. Having worked with many HR teams on their analytics journeys, we found that for recruiting teams to be successful at making data-driven decisions, they need to be able to do the following:
Link recruiting strategies to organizational performance KPIs
Measure, track, and benchmark key recruiting metrics
Show how recruiting decisions impact workforce performance
Provide stakeholders with timely and easy-to-digest insights along with their potential impact/ROI
Watch how our SOLVE™️ Workforce intelligence Software helped other HR teams achieve these and build a workforce decision hub.
To Learn More
Want to know more about our Recruiting Analytics framework and benchmarks? Contact us and we will get back to you shortly.