KPIs: See the Results, Not Just the Numbers. What, How, Why.
Do you truly understand the strength of your recruitment efforts? KPIs reveal what works – and where there’s room for optimization. With HR-ON Recruit, you can stay up-to-date with your latest data and compare your performance with others in the industry. Read on to discover KPIs and how they can be used in HR-ON Recruit.
Key Performance Indicators (KPIs) are the key to a more accurate, data-driven recruitment process. The numbers and metrics you collect and analyze can offer valuable insights into what’s working well and where there’s potential for improvement.
But how do you keep track of all that data? Wouldn’t it be great if your recruitment system could automatically store this information while providing a clear overview of your recruitment efforts and KPIs? With Recruit Insights in HR-ON Recruit, it’s all possible.
What Are KPIs?
As introduced earlier, a KPI is a measurable unit used to assess how well a company, department, or employee performs relative to set objectives. KPIs can be strategic, tactical, or operational across industries. That’s why it’s essential to understand which KPIs are relevant for your specific business so you can make informed decisions based on solid data. In this blog post, we’ll focus on KPIs in recruitment.
Successfully executing recruitment, understanding the process, and identifying valuable talent is crucial. From a financial perspective, businesses need the right people in the right roles while ensuring employees receive the necessary support and development opportunities to succeed. This is a key factor in achieving strong returns.
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Why Are KPIs Important?
You may have encountered the phrase, “My gut feeling says…” during recruitment. While gut feelings are important, they shouldn’t be the sole factor in hiring decisions. Relying only on intuition can lead to hiring mistakes, costing you time and resources.
Data-driven recruitment can help you make strategic and well-considered decisions. Gut feelings can be a part of the process, but it’s essential to have data that backs up your decisions. Without this data, you risk hiring someone who fits an archetype that doesn’t serve the business in the long run.
KPIs help businesses gain a clear overview of their performance and results. When correctly defined, they can adjust strategies and make more informed decisions. KPIs are essential for optimizing workflows, increasing efficiency, and ensuring that department and employee goals are achieved.
Examples of KPIs in HR and Recruitment
In HR and recruitment, KPIs are critical in ensuring that recruitment processes are measurable and effective. One such KPI is Time to Hire, which measures the number of days from posting a job to hiring a candidate. This metric gives a business a clear view of how long it takes to find and hire the right candidate.
Another crucial KPI is Cost per Hire, which measures the total costs associated with hiring. This KPI provides insights into recruitment expenses and helps ensure the company isn’t wasting resources on finding the right employee.
A third relevant KPI is Employee Retention Rate, which measures the percentage of employees who stay with the company over time. A high retention rate suggests a positive work environment and effective HR structures. In contrast, a low retention rate may signal the need for improvements in leadership, employee well-being, or company culture.
KPIs in Recruitment
- Time to Hire: The number of days from first contact with a candidate to accepting the job offer.
- Cost per Hire: Total expenses related to hiring a new employee, including advertising, recruitment agencies, internal hours, etc.
- Quality of Hire: A measure of the value the new hire brings, typically based on performance, retention, and manager satisfaction.
- Offer Acceptance Rate: The percentage of job offers accepted by candidates.
- First-Year Turnover Rate: The percentage of new hires who leave the company within their first year.
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KPIs in Recruitment with Recruit Insights
With our recruitment system, HR-ON Recruit, you can access Recruit Insights – an enhanced statistics module available to all customers. Get a clear overview of your recruitment data and make sharper, faster decisions based on solid insights.
As an added benefit, you can purchase the benchmarking module in Recruit Insights, which allows you to compare your recruitment data with industry standards. Get a clear picture of how your recruitment performance stacks up against other companies and pinpoint areas for improvement.
View your KPIs directly on the dashboard for a quick overview – perfect for spotting trends instantly. Forget about folders and documents; all your data is consolidated in the system, benefiting you and your colleagues.
You can learn more about the benefits of HR-ON, calculate your price using our price calculator, or book a demo with one of our sales consultants.
FAQ: KPIs and Recruitment
What is a KPI?
A KPI is a measurement unit used to assess a company’s performance with set objectives.
What is an example of a KPI?
Examples of KPIs in HR include Time to Hire, Cost per Hire, and Employee Retention Rate.
How are KPIs measured?
KPIs are measured using data analysis, dashboards, and performance metrics relevant to the company’s goals.
How does a KPI dashboard work?
A KPI dashboard consolidates and visualizes the company’s KPIs, making it easy to gain insights and make informed decisions.
