Resourcing Insight Blog

11 Oct RTT – Measuring the Recruitment Process

These are the thoughts and takeaways from the latest Resourcing Think Tank (RTT) held on Wednesday 28th November 2012 hosted by Lloyds Banking Group’s Lynda Price (Head of Resourcing), titled ‘Industry Benchmarking of Resourcing Metrics’.

The following summary has been prepared to reflect a segment of the discussion held amongst senior HR and Resourcing professionals from leading UK and other international businesses.  Specific company details, experiences and examples have been omitted from this summary as all discussions are held under ‘Chatham House Rules’.

When assessing the recruitment process, there are a number of metrics and KPIs which help illustrate the performance of the function. However, it’s not always easy to access the data to monitor certain metrics due to dysfunctional or outdated management systems. The remaining pieces of the puzzle are actually deciding which measurements to build into a resourcing report and then identifying how to measure them. From measuring cost, time and quality, to source, referral rate and satisfaction; there are a whole multitude of analytics to consider. So, which are most important? It was agreed that time and quality were the most critical to assess, however the latter poses a number of challenges with regards to subjectivity and defining what ‘good’ looks like within a business.

Where does the responsibility lie?

Typically, there are two types of metrics which can be assessed by the resourcing function:

  • Hard metrics – candidates into a pipeline, interviews scheduled etc.
  • Soft metrics – talent development, fulfilling potential etc.

The resourcing function should be able to present statistics on the above, but realistically they can only directly influence the hard metrics and therefore these should be the results they are solely accountable for. Surely, once a candidate is successfully placed within a business they ‘change hands’ and fall onto the radar of Talent. It was agreed that in order to measure ‘softer metrics’, Resourcing and Talent need to marry up and take joint responsibility for KPIs such as: time to competence, quality of hire etc.

The complexities of measuring quality of candidates

One of the main concluding points from the RTT was that measuring the quality of a candidate is something very unique to a business, and as such it can’t be generalised by assessing it with a standardised formula. One recommended way of understanding if a ‘good’ hire has been made, is consulting with the leadership team to decipher what type of candidate is the most profitable / productive / makes the biggest impact to a business in the shortest period of time. This can be done by mapping your existing workforce, identifying what good looks like and channeling this back into the recruitment process. This method is also a great way to reduce ‘miss-hiring’.

Measuring quality of service

As previously noted, developing a standardised metric for measuring the quality of a candidate is often too subjective within different businesses, varying sectors and when assessing candidates at different levels. With this in mind, the RTT decided to focus on the quality of the recruitment process, in terms of client and candidate satisfaction, for developing a standardised formula. The proposed components of ‘Resourcing Effectiveness’ are demonstrated below.

The proposed formulas

Based on the general discussion, three key metrics were explored in-depth and the following components were identified as being integral to cost, time and resourcing effectiveness:

Cost per Hire (To be measured as a % of salary and a monetary (£) value)

Advertising + Agency + Referral Fees + Recruiters Time* + Technology + Overheads

*If you don’t have a dedicated recruitment function this is calculated as a % of the HR Business Partners’ time

This will be broken down into the following sub categories for Internal and External Hires:

  • Executive Hires
  • Specialist Hires
  • Volume Hires

Time to Hire

Vacancy Approval to Offer Acceptance

This will be calculated for Direct as well as Agency hires and will be broken down into the following sub categories for Internal and External hires:

  • Executive Hires
  • Specialist Hires
  • Volume Hires – (use Candidate Apply to Offer Acceptance)

Resourcing Effectiveness

% Hiring Manager Satisfaction

% Candidate Satisfaction

Application to Interview

1st Interview to 2nd Interview

2nd Interview to Offer

Offer to Acceptance

This will also be sub divided into Internal / External hires as well as:

  • Executive Hires
  • Specialist Hires
  • Volume Hires

Conclusion

One of the key observations from the Think Tank was that it is exceptionally difficult to use standardised metrics across sectors, varying hire levels and based on the source of the candidate. Therefore, all these variables need to be treated separately when assessing cost, time and resourcing effectiveness. Additionally, before attempting to measure any metrics, ensure you are reporting on the data that your management / leadership team cares about to avoid the analysis becoming a meaningless activity. Finally, once you have decided upon your KPIs, define exactly what you are measuring, why you are measuring it, how you will quantify the results and importantly, if you are accountable for them.

To find out more about the Think Tank RTT – Measuring the Recruitment Process:

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