There are a lot of smart reasons to track HR talent metrics. The data you collect can inform your troubleshooting on hiring performance issues. It provides a foundation for strategic planning against larger organizational goals. And let’s not forget, as a TA leader your professional reputation is at stake every time you bring a new employee into the organization. HR metrics can serve as your baseline for measuring your team’s improvement.
Here’s a list of basic talent metrics you should be tracking from end-to-end in the employment lifecycle:
#1. Time to hire.
Now more than ever the speed of your hiring process is a determinant of hiring success. Your window of time to engage top talent is less than 10 days, and the longer hiring decisions take, the more likely it is you’ll lose choice candidates. To measure time to hire, track the time period between date the job is posted and date the candidate is hired. It can be an indicator of the efficiency of your hiring process, and if you track time between hiring steps, it can also reveal where your bottlenecks are. Since time to hire can vary by days and weeks across sectors, the best benchmark will be the average time to hire within your industry.
#2. Quality of hire.
This metric is highly dependent on how your organization defines a quality hire. Some take a simple approach and consider employees who stay for a certain time period or longer as a quality hire. In other cases, organizations take several factors into account, such as how quickly a new hire becomes productive, and performance ratings by and satisfaction of the hiring manager. There is no one-size-fits-all approach to this talent metric, so it’s important to build consensus on your definition with organizational leadership before you start using it.
#3. Cost per hire.
This represents the total of the internal and external costs to hire employees from sourcing through onboarding. When averaged over time, it can help you with future budgeting and determining if your talent acquisition processes must become more time- and cost-efficient to meet larger organizational goals.
#4. Employee engagement.
Employee engagement indicates how committed employees are to your organization and how motivated they are in their work – two key influences on employee satisfaction. Companies rated as top places to work typically have high scores with this metric. High employee engagement can lead to high productivity, since employees are more willing to put in extra effort. It can also enhance talent acquisition since engaged employees can be a source of referrals of great candidates. You can measure employee engagement through anonymous employee surveys. Read how top workplaces drive employee engagement and loyalty.
#5. Turnover rate.
This metric represents the percentage of employees who leave your organization over the year against the total workforce over the same period. Like time to hire, it’s best to benchmark turnover rates within your own industry. Turnover is often costly to an organization, and high turnover rates can indicate an issue with your hiring and/or onboarding process.
Interviewing Tech Supports Improved Talent Metrics
If you’re determined to improve one or more of these metrics in your organization, look into an advanced interviewing platform like Modern Hire as part of your solution. With applications like text interviewing, automated scheduling and combined interviews and assessments all underscored by assistive AI, interviewing technology can help you transform your hiring process and make smarter hiring decisions that your metrics will reflect.