What is an effective recruitment pipeline?
An effective recruitment pipeline is a well-established approach for delivering an improved recruitment process. It has a well-stocked talent pool in place prior to the opening of a new position. Through methods of recruitment and a sequence of predictable recruitment steps, the qualified candidates progress through the pipeline until the most qualified person is hired.
It takes time and careful planning to come up with an effective talent pipeline strategy. If done right, it enhances your chances of hiring the best people in the shortest time possible. But, how would you know if your recruitment pipeline strategy works for you unless you measure its effectiveness?
Identifying and measuring the key metrics of your recruitment pipeline is certainly challenging but extremely important.
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So what are the most meaningful recruitment KPIs?
The most meaningful metrics for you would be the ones associated with your recruitment goals. Although we have listed 10 key metrics for measuring recruitment pipeline effectiveness, you should probably focus your time and effort on measuring only a few critical ones tied to your recruitment goals. Because measuring and reviewing every metric listed below will leave you very little time to actually recruit! So, here they are:
Source of hire
This hiring metric shows which of your recruitment channels delivers the maximum number of candidates. This valuable information will help you focus your efforts on high-performing sources and shut the non-performing ones.
Quality of hire
This recruitment metric reveals how effective the recruitment pipeline is in delivering the talent the organization needs. One way of identifying it is to ask managers how satisfied they are with the new recruits.
Surveying new recruits on their recruitment experience will help you identify the loopholes in your method of recruitment and pinpoint ways to streamline the recruitment process.
Cost per hire
Tracking how much you need to spend to attract talent gives you a clear idea of how effective your recruitment process is and how strong is your employer brand.
Offer acceptance rate
The offer acceptance rate is the percentage of offers made to candidates that are accepted. Although the ideal number varies depending on the job position and industry, it usually ranges from 80% (highly competitive industry) to more than 95% (less competitive industry). By measuring the acceptance rate, you can assess the competitiveness and attractiveness of your job offers and tweak them accordingly to make them more attractive to the candidate market.
Time to fill
Although the time to fill varies from job to job, measuring it will give you an idea of key benchmarks you need to have for various levels. If you are not meeting these benchmarks, it may indicate that something is not working as it should. It could be your recruiter’s productivity, or efficiency of the recruitment process, your recruitment channels or your employer brand.
Employee Net Promoter Score (eNPS) and staff engagement
This metric reveals staff engagement. Some of the best ways to measure employee engagement are through pulse surveys, eNPS surveys, and other tools. By tracking eNPS, you will be in a better position to understand whether your employee experience matches up to your on-paper employer brand.
Recruitment site analytics and social listening
By analyzing the feedback on recruitment sites like LinkedIn, Glassdoor, Indeed or Monster, and tracking the conversations people have about your brand on social sites like Facebook or Twitter, you will be able to measure the external perception of your employer brand.
This metric is the ratio of candidates submitted to the hiring manager and how many were selected for interviews. If this ratio is low, it may indicate that the manager is not satisfied with the quality of candidates being shortlisted.
The interview-to-offer ratio is a measurement of how many candidates, on average, a hiring manager needs to interview to make an offer. The ideal ratio is 3:1. This means that every three interviews should result in one offer. If the ratio is higher than ideal, it means that either the recruiter is submitting poor candidates or the manager is failing to evaluate the candidate effectively.
The above metrics are examples of how your organization can assess the effectiveness of the talent pipeline and the recruiting process. By understanding the overall impact of an effective recruitment pipeline on the recruitment process, you can demonstrate improvements in hiring efficiency and quality that would translate into incredible business benefits.
Kelly Barcelos is a progressive digital marketing manager for Jobsoid – Applicant Tracking System. She is responsible for leading the content and social media teams at work. Her expertise and experience in the field of HR enable her to create value-driven content for her readers – both on Jobsoid’s blog and other guest blogs where she publishes content regularly.
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An easy reference document covering the whole process from scoping the Job Description for upcoming vacancies, right through to making better job offers than your competitors and sealing the deal, and every step in between. Written by Accounting firm Partners, HR/People Management professionals within the accounting and bookkeeping sector and drawing on established and emerging best practice in selection techniques in Australasia, the UK and US, you can have access to a wealth of practical recruitment and selection knowledge and links to external expertise and reusable templates whenever you need it.
About the Authors
Giles Pearson FCA was a PwC Partner for 18 years before jointly setting up Accountests.
Steve Evans has a whole career dedicated to enabling employers to attract, recruit, develop and retain talented individuals and teams, with particular expertise in candidate testing and assessment before setting up Accountests.
Accountests deliver the world’s only online suite of annually updated and country-specific technical knowledge tests designed by accountants for accountants and bookkeepers. www.accountests.co.nz