Glad you asked. Hiring Performance is the measurement of both the effectiveness and efficiency of your recruit to hire process as determined by three key performance
Key performance metrics including: 1) Recruiting Cost Ratio; 2) Time to Start; 3) Candidate Quality. Let’s explore all three in more detail.
1. Recruiting Cost Ratio
The Recruiting Cost Ratio (RCR) is a more effective way to measure the efficiency of recruiting than the traditional Cost per Hire model. Cost per Hire can be misleading as it doesn’t factor in the variations of job function, skill levels, labor market conditions and industry specific variables.
The Recruiting Cost Ratio is the result of dividing total recruiting costs (for all employees) by total salaries hired, not hires.
RCR = Total Recruiting Costs/Total Compensation Hired
If you would like to determine your own Recruiting Cost Ratio, feel free to use our free RCR Calculator.
2. Time to Start
Time to start is the timeframe from job requisition approval to employee start date segmented into four major time based phases including:
- Days to Launch: Time from requisition approval to communication of job opportunity to internal and external candidate sources
- Days to Present: Time from job launch until the candidate (that is ultimately hired) is presented to the hiring manager
- Day to Offer: Time from when the candidate that is hired is presented until a formal offer has been extended. This is often referred to as the “Interview Efficiency” metric
- Days to Start: Time from when the job is launched until the candidate that is hire starts their first day of employment
3. Candidate Quality
This is a metric that is often discussed, but with many definitions. For Accolo candidate quality starts with a few basic questions being asked right up front to ensure the right candidate actually becomes engage in the process.