39% of businesses admit to not measuring their recruitment costs*. If businesses are not keeping track of costs, what other recruitment numbers aren’t they keeping tabs on? As the saying goes, ‘If you can’t measure it, you can’t improve it’. Most business projects come with a set of performance figures that shed light on progress. Successful talent acquisition is no exception to this rule. Could the absence of KPIs be why a staggering 82% of businesses are struggling with recruitment?
Watch your figure(s)…
What’s your cost per hire?
- The UK’s average cost per hire stands at £5,000 for senior roles and £2,000 for other roles
- Most businesses do not measure their hiring costs because, well, ‘it’s complicated’
- Sainsbury’s achieved cost savings of 40% while Reuters saved a million pounds* - not a benchmark necessarily, but useful information nonetheless
- Talent Acquisition Platforms (TAPs) can do all the cost tracking for you in background, from the minute your recruitment campaign goes ‘live’
- Other useful figures available in TAP reporting systems include: cost per job board, cost per application, cost per interview, cost per talent pool candidate etc.
What’s your time to hire?
- The UK’s average time to hire is 6 weeks
- 33% of businesses admit to losing talent because of the length of their hiring processes
- KPMG cut average time to hire by 14 days, while Federal Express shaved 65% off recruitment time
- TAPs not only save valuable HR time, but they also shed light in other easily overlooked areas including: time per consultant, time to interview, time spent per applicant, time spent on bad applicants vs. good applicants
- TAPs can do all the cost tracking for in background, from the minute your recruitment campaign goes ‘live’
Has a candidate worked out? The ongoing question of quality
The definition of quality will vary from business to business although the following basic considerations, more often than not, come into play:
- Length of service
- Incumbent’s performance factor
- Cultural fit (however you define or score this)
What other figures do I need to look at?
Other supporting figures include:
- Number of applications by source (what source works best for you?)
- Application, pre-screening, telephone interview, 1st interview, 2nd interview stats
- Demographics of applications (location & time)
- Throughput of candidates in recruitment process
- Best days to advertise jobs by number of applications
The power of numbers!
These recruitment numbers will put you back in control of your talent acquisition.
- You’ll be able to pinpoint any flaws in your strategy and take steps to rectify them
- Negotiating better fees with your media suppliers becomes easier which maximizes your ROI
- Ultimately, having these figures at your disposal will directly impact your ‘Time to hire’, ‘cost per hire’ and ‘quality of hire’
A good Talent Acquisition Platform (TAP) should be able to put this information at your fingertips. Not only that, the information comes in a format that is easy to view and understand, such as, pie charts, graphs and tables. Done properly you should be able to easily demonstrate to stake holders that your recruitment process is improving over time with reduced time to hire and cost to hire.
Geoff Grout (n.d): Online Recruitment Trends
Expert HR: What is the typical time to hire
HR Magazine: Reduction in recruitment costs
CIPD (2013) A Barometer of HR trends and prospects
CIPD (2015) Annual Survey Report 2015 - Resourcing and Talent Planning
CIPD reports (2006 - 2015): Recruitment, retention and turnover. Report names changed in 2010 to ‘Resourcing and Talent Planning’
About the author
Brett Marlow at www.iintegra.com
In my new role working for iintegra, a recruitment technology business based in Leicestershire, I consult with different organisations across different sectors on how to streamline their recruitment processes.
Prior to working with iintegra.com I ran various recruitment technology companies including two niche jobs boards within Credit, Risk and Compliance which remain very successful today.
If you would like advice or an informal discussion about the iintegra Talent Acquisition Platform, please feel free to contact me on 07468 457585 or email firstname.lastname@example.org