Life moves at the speed of light, and nobody knows that better than recruiters.
Hiring efficiency has always been important, but with the job market finally picking up after its pandemic slump, it’s taken on an entirely new significance. In the long run, your efficiency could be what makes or breaks you.
At this point, the only way to know if your talent acquisition process is efficient is by intentionally tracking the most important KPIs for recruiters.
By having a system in place to measure your recruitment KPIs, you can improve efficiency to snag the best talent while still saving time, energy, and money.
And with a one-way video interview software like Hireflix you can streamline your process and ensure you’re hitting the KPIs we’ll talk about in this post. Hireflix has arguably the best video interview API and integrations on the market so you will be able to benefit from these improvements on your ATS/CRM without changing the way you work.
Check out the video below to learn how to start a Hireflix trial and how one-way video interviews can make your life as a recruiter much easier and more efficient:
Ready to learn more? Let’s get started.
What Are Recruiting KPIs?
In recruiting, Key Performance Indicators (KPIs) are trackable metrics that help you evaluate the overall performance of your hiring process. Over time, tracking and analyzing recruitment metrics can help you adjust your approach and keep ahead of the competition:
This level of attention to detail may sound tedious, but when it comes to tracking efficiency, the importance of this work cannot be overstated.
If you’re going to attract top, qualified candidates before they’re lured away to accept other positions, you will want to have a plan in place to measure your KPIs.
This is the best way to gain useful data on where and how you can adjust your hiring process.
Which KPIs Should Recruiters Focus on Measuring?
To answer the question of which KPIs are the best for recruiters to measure, you first must know your own objectives.
Depending on your current hiring objectives, you will want to track the metrics that will best help you:
- Reduce turnover
- Pull from a large or more diverse pool of candidates
- Attract higher-quality candidates
- Cut recruitment costs
- Streamline your hiring process
- Fill positions more quickly
The bottom line is this: When it comes to “the best” KPIs for recruiters, there is technically no right or wrong answer.
The most important KPIs are always the ones that measure progress toward whatever objectives you and your team are focusing on right now.
That being said, there are certain KPIs that have proven themselves useful for most hiring objectives.
6 of the Most Useful KPIs for Recruiters
After examining your current hiring goals, you can determine which KPIs will provide you the most pertinent data.
No matter your objectives, these six are some of the most useful KPIs for recruiters.
1. Quality of Hire
Measuring quality of hire is crucial because it’s one of the best metrics to determine the overall success of your recruiting efforts.
When we discuss quality of hire, what matters here is not necessarily the total number of hires you make or the acceptance rate of those you interview, but more so the number of successful hires.
There isn’t a single approach to judging a successful hire, of course, but quality of hire can often be measured over time by looking at things like:
- Whether the employee proves to be a good fit for the position long term
- Whether the employee remains in the position for a long period of time after being hired
- Whether the hiring manager is satisfied with the hire
If you find that you’re filling positions quickly, but the hires don’t last, or the hiring managers aren’t quite happy with the fit, then you know you have issues related to quality of hire. Addressing these issues will help ensure your recruitment efforts are deemed a success.
2. Time to Interview
Time to interview is one of the most important KPIs for your recruiting team to track.
Remember: In recruiting, time is always of the essence.
Time to interview is gauged by how much time passes between when the open position is announced and when the first interviews begin taking place. Analyzing this metric will let you know if your recruitment marketing is hitting the mark.
Because good people always get hired first, time to interview must be kept as short as possible.
The longer it takes you to set up and conduct interviews, the less chance you have to attract and land the best talent.
That’s why time to interview is one KPI for recruiters that absolutely cannot be overlooked.
3. Time to Hire
The time between when a candidate is first contacted about a job and when they accept a job offer is referred to as time to hire.
It’s a common recruiting metric to track because it gives vital information about the efficiency of your recruitment funnel and the hiring team.
The longer your time to hire lasts, the greater the chance the job seeker might go another direction and accept a different offer. Therefore, anything you do to speed the time to hire will increase your chances of hiring the best candidates.
This is where one-way video interview software from Hireflix can really shine.
With our system, candidates can interview quickly, moving them one step closer to a job offer.
Our show-up rates for interviews are extremely high, and because interviews can be completed on demand, the most interested candidates record their interviews right away, decreasing your time to hire and giving your HR team a better shot at retaining talented prospects.
4. Interviews per Hire
Interviews are the lifeblood of talent acquisition, yet they can prove extremely time-consuming.
You will generally need to interview a pool of candidates, yet the more interviews you conduct per job posting, the more time you’re spending to fill positions and the less efficient your process is.
Naturally, interviews per hire is among the top KPIs for recruiters to measure. As the term indicates, interviews per hire measures how many interviews you conduct before a hire is made.
If your ratio between the number of interviews and hires is too high, you may want to examine your application process and see if you should ramp up your screening methods so that you’re not wasting time and slowing down your hiring time.
5. Cost Per Hire
The cost-per-hire recruitment metric measures all expenses associated with a new hire.
The recruitment cost require to hire a new employee includes everything related to:
- Advertising and recruitment
- Signing bonuses
- Onboarding and training
While costs related to filling a position vary widely depending on the industry, the average cost of hiring a new employee is around $4,000, according to a recent study.
While hiring a new employee is an important investment, your goal should always be to see the highest ROI.
This is where tracking cost per hire will really help. This KPI can not only reveal if your cost per hire is on the rise, but it can also identify areas in which you can reduce hiring costs.
Ways that recruiters can reduce cost per hire may include:
- Creating an internal employee referral program. Good people are often your best link to connecting with more good people. But this doesn’t happen by accident. Intentionally create a system by which your current employees can refer their contacts for open positions.
- Recruiting prospects via your social media channels. Many people spend large blocks of time online. Even if they’re not planning to visit job sites, they’re likely visiting Twitter, Facebook, or Instagram daily. With a bit of planning, you can leverage social media for cost-effective recruitment opportunities.
- Using a high-quality, low-cost interview software like Hireflix. Here at Hireflix, we focus on doing one thing well, and we do it better than anybody. Our premium one-way video interview software can not only reduce your cost per hire, but also your time to hire as well, helping you stand out from the competition.
6. Retention Rate
Employee retention rate is another important KPI for recruiters to track.
The retention rate is judged based on the number of employees to stay with the organization over a pre-set amount of time. While you can pick any time frame, organizations often track their retention rate based either on quarterly or yearly blocks.
While quality of hire takes retention into consideration, a dedicated retention rate KPI examines solely whether the hires you have recruited stick with their jobs over the long term.
Retention rate is important to examine because it has implications for understanding how (or even whether) you’re managing to attract, train, and keep quality employees.
Perhaps the most important reason to track this KPI is that employee retention is one of the keys to higher productivity and lower costs.
When employees stick with a company long-term, not only do their contributions become more valuable as they increase their skills and experience, but because positions have a low turnover rate, the company also does not have to invest time, money, or energy in seeking out and training replacements.
Really, with a high retention rate, everyone wins.
For recruiters, tracking this KPI is the first step toward unlocking its secrets.
3 Ways Hireflix Can Help Recruiters Hit Their KPIs
The premium features on our Hireflix platform can help you simplify, standardize, and evaluate your process and KPIs.
Along the way, you will:
- Save time and energy
- Attract top talent
- Keep your overall recruiting costs low
1. Hireflix saves you time
The fact that Hireflix can help you save time is perhaps the most important point in this whole article.
Recruiters are always up against a ticking clock.
Think back over the recruiting metrics. Two out of the six KPIs have the word time in their title (time to hire, time to interview).
This isn’t a coincidence.
The best candidates always leave the pipeline fastest. Therefore, in the recruiting process, time is always of the essence.
Fortunately, Hireflix can help speed up your hiring process. Our one-way, on-demand video interview software accelerates the process exponentially, helping you screen and interview faster.
With Hireflix, there’s no need to:
- Exchange emails
- Compare schedules
- Book screenings
- Coordinate time zones
Instead, your entire candidate pool can instantly access the interview questions and record and post their responses as soon as they feel ready. Even this alone will speed the process along.
You can then screen interviews at your convenience, contacting likely candidates and moving them along to the next step without unnecessary delays or slowdowns.
2. Hireflix helps you attract top talent
This bears repeating – a quality candidate will never stay in the job market for long. If you want access to the best candidates, you’re going to have to move quickly.
Hireflix helps you seize the day by making interviews available on demand, and our fast and easy process provides a superior candidate experience and keeps them engaged.
And you don’t have to worry about getting ghosted.
Our show-up rate for interviews is high. And no wonder – we’ve created a user-friendly system that removes barriers and slow-downs common to the traditional interview process.
With Hireflix one-way video interview software:
- There’s no need to download an app, register a profile, or learn a complicated in-house system.
- Motivated candidates can get started interviewing almost immediately.
- The process is quick, seamless, and can be accomplished on demand.
In short, Hireflix will help you attract top talent because interested candidates can quickly complete their video interviews, giving you the chance to screen, recruit, and hire them before someone else snatches them up.
3. Hireflix keeps your costs low without sacrificing efficiency
Hireflix knows that nobody can do it all, and that includes us.
In fact, we pride ourselves on doing one thing really well.
We do one-way video interviews better than anybody, and that unique expertise allows us to streamline our services in a way that helps you meet your most important recruitment KPIs while still keeping your costs low. With Hireflix, you’ll always get exactly what you need at the price you can afford.
Hireflix Can Help
If you’re looking for ways to increase your recruitment efficiency, a great first step is to measure your efforts and the success of your application process and hiring rates.
The next best step is to partner with Hireflix.
Once you have the power of our exceptional one-way video software on your side, you can improve efficiency and save hundreds of work hours, all while attracting the most qualified candidate for each open job
Come learn more about what we have to offer, request a demo, and get started with a free trial today!
We look forward to hearing from you and learning how we can help you hit the most important KPIs for recruiters.
What are KPIs in recruitment?
Key Performance Indicators (KPIs) are metrics that help you track the overall success of your recruitment process and gain insights on how you can improve effectiveness in key areas.
Though specifics vary according to hiring goals, six common KPIs recruiters track may include quality of hire, time to interview, time to hire, interviews per hire, cost per hire, and retention rate.
Tracking your metrics around these six areas will help you recognize which areas in your recruitment process are performing well and which could be adjusted so that you can snag top talent.
Why are KPIs important in recruiting?
KPIs are important to track in recruiting because they give you a benchmark from which to judge your overall effectiveness. This is vital because if your pipeline is not as efficient as possible, you may face negative consequences.
Not only will you be expending unnecessary time and energy, but you’ll also be spending more money on your recruitment process while getting less accomplished than your competitors.
Worst of all, you could be consistently missing out on the top candidates since they only stay on the job market for a short amount of time.
How do you measure the performance of a recruiter?
You can measure the performance of a recruiter by tracking some key KPIs related to their pipeline, such as quality of hire, time to interview, time to hire, interviews per hire, cost per hire, and retention rate.
By tracking these metrics over time—especially as you make changes to improve your overall hiring process—you will be able to see what is working, understand what’s not, and gain insight into what adjustments you can make to right the ship.
What are the most important KPIs to monitor during the recruiting process?
When it comes to which KPIs to monitor during the recruiting process, there’s a sense in which there is no right or wrong answer. The most important KPIs to measure will always be the ones that will best help you meet your current hiring goals.
That said, six common KPIs recruiters like to track include
- Quality of Hire
- Time to Interview
- Time to Hire
- Interviews per Hire
- Cost per Hire
- Retention Rate
Before setting out to monitor your KPIs, always take time first to evaluate your goals and objectives for recruitment. This will help you zero in on which KPIs to monitor.