Setting meaningful KPIs (Key Performance Indicators) for your recruitment team is a critical component of improving their performance and reaching specific goals. Why? Because KPIs enable managers to assess their recruitment team’s progress and evaluate their performance over time. KPIs also allow a different perspective on recruitment activities, as teams can gain valuable insight and feedback without relying on traditional metrics.
Without a clear understanding of how to measure recruiting team performance, it can be challenging to determine whether they are meeting their goals. While struggling with unclear KPIs, keep in mind that your recruitment team has to deal with the shifted hiring landscape as well. For example, there is a big momentum toward data-driven hiring in 2023.
At the same time, candidate experience is becoming the number one factor in determining the trajectory of your hiring. Clearly, this has been a challenge for many businesses, as 60% of job seekers have been through a bad candidate experience. Consequently, attracting and retaining the right talent became the top struggle for 76% of hiring managers.
It goes to show that now is the time that you should focus on KPI for recruitment more than ever. So, to help you set a clear path towards strong KPIs, we’ll take you through ways to set meaningful KPIs for your recruitment team, including identifying the right KPIs, understanding their impact on team success, leveraging technology to achieve strong KPIs, and more.
If you’re ready, then let’s dive in!
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First off, understanding how KPIs can impact the recruitment team’s success is critical for managers. KPIs provide recruitment teams with essential information regarding their hiring efforts and provide insight into the team’s performance.
By setting goals and evaluating performance in specific areas, teams can quickly identify where improvements are needed and how to maximize the recruitment team’s effectiveness.
KPIs can also be used to measure the success of recruitment campaigns. How? The ability to track the number of applicants, the number of hires, and the time it takes to fill a position will enable teams to gain valuable insight into the effectiveness of their recruitment efforts. This data can be used to set future recruitment campaigns that target the right candidate groups.
More to that, you can use KPIs to measure the quality of hires. With new hire performance tracking, you can identify areas where they need to improve in the recruitment process, ensuring that your team is recruiting the right candidates and providing the best possible experience for job seekers.
The next step is spotting the right KPIs. Start with selecting indicators that identify the team’s most important performance metrics.
Think about which areas are the most essential for assessing your recruitment team’s performance. This can include quantitative metrics such as the number of job applications submitted or interviews conducted, as well as qualitative metrics like the applicant experience or response time.
Evaluating which factors are most relevant to your team’s objectives enables you to benchmark and monitor progress toward achieving specific goals.
Also, consider the impact of external factors on your recruitment team’s performance. For example, the current job market can have a significant effect on the number of applications received and the quality of applicants.
Moreover, keep in mind that the recruitment team’s budget and resources can also influence the team’s ability to meet its goals. By taking these external factors into account, you can ensure that your KPIs are realistic and achievable.
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Establishing KPIs that are relevant to the team's objectives allows recruiting teams to focus on the outcomes that will ensure their future success. At the same time, managers can identify areas where improvements are needed and how to maximize the recruitment team's effectiveness.
When establishing KPIs, consider which measurement criteria which that reflect your team’s goals and objectives. For example, measuring applicant experience and response time is much more meaningful when evaluating the quality of hire, while tracking the cost-per-hire helps in reducing recruiting expenses.
Establishing measurable goals keeps teams focused on the outcomes which will ensure their future success.
Also, you should think about the impact of KPIs on the team’s overall performance. For example, if the team’s goal is to reduce time-to-fill, then tracking the number of days from job posting to hire is a key metric.
Similarly, if the goal is to increase diversity in the workplace, then tracking the number of diverse candidates interviewed and hired is a key metric.
Here are a few key metrics that the recruitment team should consider tracking with KPIs.
Evaluating teams’ performance in specific areas and assessing trends over extended periods is essential for understanding the effectiveness of their recruitment efforts. It helps managers identify any areas where the recruitment team is underperforming, so they can focus efforts and resources on key initiatives.
When tracking performance over time, think about the context of the data. For example, if the recruitment team is underperforming in a certain area, it may be due to external factors such as a decrease in the number of qualified applicants. In this
case, managers should consider external factors and adjust their KPIs accordingly.
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The KPI for the quality of hiring process can include metrics such as the percentage of candidates who make it to the final interview stage, the average time it takes to fill a position, and the percentage of new hires who stay with the company for a certain period of time.
These metrics provide managers with insight into the effectiveness of their hiring process and make adjustments as needed to ensure that they are recruiting the right candidates for the job.
In order to determine the overall efficiency of recruitment teams, you need to measure the amount of time they spend on different tasks. Tracking the number of hours or days required for task completion provides valuable insight into how much work teams are able to handle and how quickly they can complete tasks. As a result, managers will be able to allocate tasks better and more accurately forecast team performance.
In addition to tracking the amount of time spent on tasks, it is also essential to measure the quality of the work completed. This can be done by tracking the number of successful hires, the number of applicants that are rejected, and the number of applicants that are hired but do not stay with the company for a certain period of time.
The traditional metrics used to measure recruiting performance can be limiting as they only provide limited insight. You should think outside the box and consider alternatives that offer a more comprehensive picture. For example, tracking the quality of applicants rather than just the number of applicants provides more useful data which can be used to make more efficient hiring decisions. Plus, measuring employee retention can provide insight into team performance.
Another alternative to traditional recruitment KPIs is to measure the time it takes to fill a position. This metric can provide valuable insight into the effectiveness of the recruitment process and can help identify areas for improvement. Also, tracking the cost of recruitment can help you understand the financial impact of their hiring decisions.
Last but not least, you’ll gain insight into the effectiveness of recruitment efforts by measuring the diversity of the applicant pool.
To ensure the successful implementation of meaningful KPIs, you should adopt best practices such as using meaningful measurement criteria and focusing on relevant metrics. It is also a good idea to develop a system that allows teams to review and assess past performances. Such systems can be invaluable for gaining insight into successes and failures and help teams stay focused on desired outcomes.
Furthermore, keep in mind that it’s important to ensure that your KPIs are measurable and achievable. At the same time, they also need to be aligned with the overall goals of the organization. And most importantly, it is a must to regularly review and update KPIs.
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Technology has revolutionized the recruitment process, and it can also help managers set and track KPIs. One way to leverage technology is through the use of recruitment software. Recruitment software such as Applicant Tracking System (ATS) can automate the recruitment process as well as help managers smoothly track KPIs.
How? Well-designed ATS systems today come with built-in analytics and reporting tools that allow managers to track recruitment metrics in real time.
By using recruitment software to set and track KPIs, you can obtain valuable insights into your team’s performance and make data-driven decisions to improve their recruitment efforts.
Among the pool of ATS stands tall Manatal, a cloud-based and AI-driven recruitment solution. Why is it worth mentioning? Let’s start with its ability to streamline the recruitment process. Within a few clicks, you’ll be able to easily manage the hiring process from end to end on a single platform.
Plus, Manatal is tuned with the Reports & Analytics feature, which monitors and collects all of the important metrics throughout the process and generates insightful reports for you in a heartbeat. Its candidates report provides you with full visibility on candidates' data by source, either by your team, your career page, employee referrals, or through recruitment. You will also be able to track the number of candidates sorted by different types of channels over time.
Moreover, Manatal’s hiring performance report allows you to track the total number of placements or hires made over a given period of time. You can also go in-depth and look at the number of matches and added resumes in specific recruitment projects.
That’s not all, the leaderboard report from Manatal provides you with the ability to track down the performance of each team member throughout the recruitment process. You will be able to shine the light on a specific team member who falls short in specific stages of the pipeline and find a proper solution.
Sales are one of the important metrics for recruiters. The number of sales indicates the proficiency of your team. And Manatal has got you covered on that. While its recruitment CRM (Customer Relationship Management) feature enables your team to seamlessly manage clients from end to end, its sales report also reveals the sales performance throughout the CRM funnel based on your client pipeline stages.
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All in all, setting meaningful KPIs for your recruitment team is crucial for monitoring progress and evaluating performance. By identifying the right KPIs, managers can gain valuable insight into their team’s performance and identify areas where improvements are needed.
In an attempt to achieve strong KPIs and improve your team’s performance, It is a good idea to examine the impact of external factors and to regularly review and update KPIs to ensure that they remain relevant and achievable. Leveraging technology, such as recruitment software and AI-powered tools, can also help managers set and track KPIs more effectively.
By following best practices and adopting technology, managers can set their recruitment teams up for success and achieve strong KPIs.
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