Advanced Talent Acquisition Metrics

By Surbhi Jain, 3rd Eye Advisory®
Advanced Talent Acquisition Metrics

Talent acquisition function of HR is of strategic importance to the organizations as it takes care of Human Capital which builds and fosters excellence throughout the company. Talent Acquisition is at front lines of War for talent to fulfill business objectives. In today's economy Talent Acquisition function will find importance in all the sectors like IT/ITES, manufacturing, transportation, construction, hospitality etc.

Strategy, goal setting and process of Talent Acquisition needs to be evaluated by using metrics to gain insight into how we can improve them further to ensure we attract the best talent in terms of quality and culture fitment.

Disruption of technology has changed the way people apply for jobs, how employers hire which requires companies to take an analytical approach to hiring by tracking metrics. Data Consolidation and Management is essential to provide single, consistent and customized view of data to all stakeholders therefore manual tracking of metrics on spreadsheets is no longer a viable option. Real time tracking of metrics and their monthly, quarterly and yearly assessment has become mandatory for success of TA strategy.

Talent Acquisition process can be evaluated on basis of Alignment, Efficiency, Effectiveness, Adherence and Outcome. Metrics commonly used for are:

  • Cost of Hire
  • Quality of Hire
  • Recruitment Process Index
  • Recruitment Funnel
  • Source Mix
  • Interview Assessment Analysis
  • Open vs. Filled vacancies
  • Referral Scheme Performance
  • Rehire Ratio
  • Candidate Experience Feedback

The metrics mentioned are traditional in nature as they have been used by companies to track the performance of TA strategy. The metrics can also be classified as cost, time and quality metrics as they essentially measure one of the three parameters of TA process. Apart from traditional metrics, advanced measures are adopted by companies over and above the traditional metrics to provide greater insight into TA process:

  • Talent Mobility Index-
    Talent mobility index is metric used to measure readiness of employees to internally fill the requisition raised. It is measured in terms of percentage of positions for which ready resource is available, percentage of positions filled internally, average time to fill internal positions and average time to fill positions created due to internal movement.
  • Social Media Index-
    It measures the reach and conversion of job postings on Facebook, Twitter, LinkedIn or any other social media websites. It is measured by number of job postings on each media, number of redirects from social media to career page, number of hits on career page
  • New hire failure rate-
    Any new hire who is terminated or leaves a company within first six months is a failed recruit. This metric is calculated based on the percentage of new hires who were terminated or who left during first 6 to 12 months after they start working. Failure analysis should be conducted immediately on each major new hire failure in order to determine what went wrong during that hiring process
  • Passive candidates conversion ratio-
    If a top person who is approached for a job is interested in the job posting the best person for the job will be hired and not best person who applied for the job. A good recruiter should be able to convert 75% of candidates approached using advanced applicant control and needs analysis techniques
  • Cost of attrition-
    Cost of attrition accounts for cost to hire metric as well as indirect and virtual cost associated with attrition. Indirect or virtual costs are increase in the cost of resource, time spent in recruitment, cost of vacancy, come to speed cost and productivity loss to company. These costs have to be factored to get a holistic view of cost of attrition
  • Predicting success of candidate in existing role-
    By using cognitive systems and robust collection and analysis of data sets we can predict the success of candidate in a role. More variables have to be taken into account, enabling the cognitive system to link data from across a company to get a picture of what success looks like for that organization. To predict the success, first past data has to be analyzed and human input needs to be provided by applying principles of behavioral science to estimate success of candidate

Tracking the metrics will empower any recruiting team to make better decisions. When metrics are tracked, analyzed and used appropriately the quality per hire will soar, cost per hire will decline and time-to-fill will shrink. More importantly, employee engagement along with hiring manager satisfaction will reach peaks never achieved before.

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Article by: Surbhi Jain, 3rd Eye Advisory®