Digital recruiting is not subject to any other laws per se. Companies are still looking for the optimal employee, job seekers are looking for the optimal employer – this does not change even with the digitalization of HR processes. Transparency makes all the difference: not only are candidates more easily accessible digitally, but so is the performance of recruitment measures. A human resources management that optimally evaluates this information controls its measures much more efficiently and effectively. This has enabled the long-standing prejudice that HR is only a cost factor, that it contributes little to business success or strategy to be counteracted in black and white.
Technologization and Analytics within the scope of Digital Recruiting
Technologization and analytics are therefore among the top trends in HR (see epunkt.com). Because technical progress continues to pick up speed in all areas and recruiters have to deal with it at all levels. Employee recruitment and talent acquisition are becoming increasingly analytical. This also changes the job description and thus the range of tasks of recruiters.
The days of “Post and Pray” are over once and for all. Placing job advertisements based on subjective experiences is a thing of the past. Intelligent analysis and prediction tools can use your defined target group to derive patterns for what response can be expected on certain channels. More than ever, HR departments must measure and continuously improve the performance of their recruiting channels in order to recruit successfully.
HR Key Performance Indicators in Digital Recruiting
But what are suitable and helpful key performance indicators (KPI’s) that on the one hand show the added value, HR delivers to the company result and on the other hand help to find and address the right candidates via the right social media channels? Recruiting indicators can be divided into the categories of time, costs and quality/effectiveness. Here we would like to point out which KPI’s play an important role in the respective category.
Time it takes from the personnel requirement notification to the filling of a position (signature and/or first working day).
2. Time to interview:
Average duration from the personnel requirement report to the interview. Here, video recruiting solutions make a decisive positive contribution to shortening the process.
Time it takes on average for the responsible hiring manager to provide qualified feedback about an applicant to the recruiter. This usually forms the basis for a job offer or a rejection.
4. Percentage of vacant positions after X days:
If, for example, a company defines for itself that it is strategically important to fill 90% of all vacant positions within a maximum of 60 days after the notification of requirements, this threshold value is very interesting. If this value is exceeded on a sustained basis, it makes sense to review one’s own recruiting process, its organisation as well as the financial and personnel resources in order to be able to make a contribution to the company’s success and strategic objectives.
5. Service rate within time X:
Percentage of questions answered by the recruiting department within a defined period of time by applicants or job applicants.
the costs that the company incurs in concrete terms and also on average for each position filled. In addition to a general average, breakdowns according to costs per staffing in each job family or per location, etc., are possible.
7. Costs per application:
the costs incurred to generate X applications when considered allocated.
8. Cost of vacancy (per job profile):
the cost of a specific vacancy per day. It allows the costs in the absence of a job holder to be objectively weighed between the job profiles along the filling priorities. Alternatively, the total costs of all vacant positions can be compared to the annual recruiting budget.
9. Number of applications per channel
or per job advertisement. Self-explanatory code number…
10. Procurement channel effectiveness:
cost-benefit analysis per recruitment channel. What percentage of recruitments were made per channel in relation to the applications generated via this channel.
11. Recommendation candidate rate:
Percentage of applications that are based on employee recommendations.
12. Source of appointment:
ratio of new external applicants vs. known external applicants (talent pool) vs. internal applicant origin.
13. Offer Rate:
Number of job offers after conducted interviews.
14. Offer Accept Rate:
Number of accepted vs. expressed job offers.
15. Satisfaction rate of the specialist department
(measured by each individual recruiting process).
16. Satisfaction rate with the recruitment process
among new hires and applicants. In the case of rejected job seekers, too, it is important to define criteria for the collection of key figures such as response time to enquiries within the framework of the Candidate Experience.
17. Quality of the settings:
Performance Evaluation – Evaluation of new hires after a specified period of time. Optimal in conjunction with the breakdown by procurement channel or by responsible recruiter and hiring manager.
18. Retention Rate:
Percentage of new hires remaining in the enterprise after the probationary period or other uniformly defined period.
19. Quality of the talent pool per job profile:
Percentage of contacts in the talent pool who have actually submitted a qualitatively acceptable application upon request.
20. Hit Rate Active Sourcing Success:
Active speeches on candidate responses to the applications actually received (and the resulting vacancies).
Depending on the size and requirements of the company, it makes sense to initially concentrate on suitable key figures. The KPi’s can then be systematically expanded step by step.
The profile of a good recruiter is already beginning to change. In the future, sales talents or talents who fluently “speak” HR, marketing and sales will also be perfectly suited to data analysis in the role of a recruiter. The market environment also continues to change dynamically. On the one hand, we are faced with a shortage of skilled labour in highly specialised roles, and on the other hand with a surplus of candidates in generalist profiles, as well as a large number of unqualified employees due to immigration. Finding the right people among the best and those with great potential is becoming more challenging year after year and at the same time more important for the company’s success. The brainpower of a company is more decisive than ever for success and failure. Key figures help to manage success demonstrably and sustainably and to steer it accordingly.