Data-Driven KPI’s - your secret sauce.
Data and KPIs are the backbone of a successful Talent Acquisition strategy. They not only provide a solid foundation but also help you tell a compelling story to execs and drive smart decision-making.
Why Data and KPIs Matter
Tracking the right metrics lets you:
Understand Performance: See what’s working and what isn’t.
Optimize Your Strategy: Make informed adjustments for better outcomes.
Show Value: Demonstrate your impact to executive stakeholders.
Making Your Case to Execs
Imagine walking into a meeting with your CEO or CFO, armed with clear, actionable data and KPIs. You’ll confidently showcase your TA strategy’s success and highlight areas for growth. This boosts your credibility and solidifies their confidence you are going in the right direction.
Lagging vs. Leading Indicators
Not all metrics are equal - there are 2 different categories:
Lagging Indicators: Reflect past performance. Think Time-to-Hire and Cost-per-Hire. These activities have already happened.
Leading Indicators: Predict future performance. Look at Candidate Pipeline Numbers, Number of interviews, and Qualify of Hire. These activities are still ongoing and can help you make adjustments.
Balancing both categories will give you comprehensive view of your TA effectiveness and guides future strategies. Now onto to - WHAT to track!
Modern KPIs to Track
As a TA leader, chances are that you are already familiar with the many types of recruitment metrics.
AND the debate on what makes the most sense!
Years ago, metrics like Time to Hire, Time to Start, and activity metrics such as the number of interviews and candidate submittals were all the rage. If your goal is to assess recruiter behavior, these metrics may still be relevant.
However, there are more modern metrics to track to truly assess your entire TA function:
Quality of Hire (QOH): Measures the impact of new hires. In conjunction with Hiring Managers, is your TA function attracting and selecting the RIGHT candidates?
Early Retention Rates: Does your TA process ensure candidates have accurate expectations? Is your onboarding experience stellar?
Candidate Net Promoter Score (CNPS): Are candidates satisfied with their experience and would they recommend to someone else?
Offer Acceptance Rate: Are your offers competitive with the market, did you properly set expectations throughout the process?
Diversity, Equity, and Inclusion (DEI) Metrics: Is your process fair and inclusive?
Source of Influence (SOI): What are your top recruitment channels?
Return on Recruitment Investment (RORI): What is the financial return on your recruitment efforts?
Candidate Experience Velocity (CEV): Is your recruitment process efficient and how long do candidates sit in each stage?
Hiring Manager Satisfaction Rate (HMSR): Are your main customers satisfied with your service?
Applying This to Your Organization
You may already be tracking some metrics and a fresh look and adjustment is all that is needed.
However, if you haven’t started yet here are some tips to get the ball rolling.
Don’t worry if you don’t have advanced tech. Start with what you have:
Use Existing Tools: Leverage your ATS, HRIS, spreadsheets, and feedback forms. Get your IT friends to the table to help you figure out what you can easily track now.
Prioritize KPIs: Focus on metrics that align with your business goals and challenges first. What is most important, right now?
Get Creative: Use manual tracking, feedback sessions, and surveys if needed.
Leverage Partners: Collaborate with recruitment agencies and HR consultants for extra support. They may have ideas or tools you can use.
Gradual Progress and Insights Over Perfection
Start small with a few key metrics and expand over time. It’s about gaining insights and making improvements, NOT achieving perfection from the start.
Bonus Tip: Once you have a defined set of metrics to start with, consider building a TA dashboard that you can share across the organization or send out on a regular basis.
Extra Bonus points: Implement a recruiter bonus incentive program to supercharge performance. Even a modest quarterly amount can significantly boost motivation and get everyone to embrace the data! Ask me how.
