Recruitment is a critical function within any organisation and the success of a company depends on its ability to attract and retain top talent. Therefore recruiters are under a lot of pressure to identify, engage and hire the best candidate in the most efficient and effective way. Key performance indicators (KPIs) play a key role in helping recruiters measure their success and help make data-driven decisions.
To understand the importance of KPIs for recruiters and how crucial they are for the success of any business, it’s essential to understand how Wamly’s one-way video interview software can assist recruiters in achieving these KPIs.
What are KPIs in Recruitment
Key Performance Indicators (KPIs) in recruitment are specific metrics used to assess the effectiveness and efficiency of the recruiting process. These metrics provide quantifiable insights into various aspects of the recruitment cycle, helping organisations evaluate the success of their hiring efforts and make data-driven decisions. By measuring KPIs, recruiters and HR professionals can gain a better understanding of their recruitment strategies, identify areas for improvement, and ensure alignment with organisational goals.
Why are KPIs Important in Recruiting
KPIs provide a clear and measurable way to determine whether the recruiting process is meeting its goals and objectives. They help answer questions like: ‘Are positions being filled within the desired time frame? Are qualified candidates being sourced and hired?’
By analysing KPIs, recruiters can make informed decisions about their sourcing, screening, and selection strategies. Data-driven insights enable them to make adjustments to recruitment tactics to optimise the outcomes so identifying trends and patterns helps refine strategies and adapt to changing market dynamics.
KPIs guide resource allocation by highlighting areas that require more attention. This ensures that time, effort, and budget are focused on strategies that yield the best results.
9 Useful KPIs for Recruiters
While the specific KPIs to monitor may vary based on organisational goals and priorities, some important KPIs to consider during the recruiting process include:
1. Source of Hire
Source of Hire provides insight into the channels that bring in the most successful candidates. By tracking the origin of hired candidates—whether through job boards, social media, referrals, or other sources—recruiters can allocate their resources more effectively and focus on the channels that yield the best results. This KPI aids in optimising the recruitment marketing strategy and helps recruiters identify where to invest their efforts and budget.
2. Time to Interview
Time to Interview measures the average number of days it takes from the initial application or candidate identification to scheduling an interview. This KPI reflects the efficiency of your initial screening and candidate engagement processes. A shorter Time to Interview indicates prompt engagement and an agile recruitment approach, enhancing the candidate experience and minimising the risk of losing top talent to competitors. By monitoring this metric, recruiters can identify bottlenecks in the early stages of recruitment and implement strategies for quicker candidate engagement.
3. Interviews per Hire
Interviews per Hire is a metric that calculates the number of interviews conducted before a candidate is hired. This KPI provides insights into the effectiveness of your interview process and the quality of candidate screening. A high number of interviews per hire may indicate a need to refine your screening criteria, ensuring that only the most qualified candidates progress to the interview stage. Tracking this metric enables recruiters to optimise their interview processes, leading to better hiring decisions and reduced time-to-fill.
4. Offer Acceptance Rate
The Offer Acceptance Rate measures the percentage of job offers extended that are ultimately accepted by candidates. A high acceptance rate indicates that the organisation is successfully targeting candidates who are a good fit for the role and the company culture. Conversely, a low acceptance rate may signal that there’s a misalignment between candidate expectations and what the company offers. Recruiters can use this KPI to fine-tune their offer strategies and refine their approach to candidate engagement.
5. Time to Fill
Time to Fill (TTF) is a fundamental KPI that measures the average number of days it takes to fill a job vacancy from the time it’s opened to the time an offer is accepted. A shorter TTF indicates an efficient recruitment process, while a prolonged TTF may suggest bottlenecks or a need for process improvement. By tracking TTF, recruiters can identify areas where the hiring process can be streamlined, reducing the risk of losing top candidates to lengthy processes.
6. Candidate Satisfaction
Candidate Satisfaction is a crucial KPI that measures the experience of candidates throughout the recruitment process. By soliciting feedback from candidates about their interactions with the company, recruiters can identify pain points, improve communication, and enhance the overall candidate experience. A positive candidate experience cannot only improve the organisation’s employer brand but also lead to better quality referrals and a larger pool of engaged candidates.
7. Cost per Hire
Cost per Hire (CPH) assesses the total cost incurred by the organisation to fill a job vacancy. This KPI encompasses various expenses, such as advertising, recruiter salaries, technology platforms, and administrative costs. Monitoring CPH allows recruiters to manage their budgets effectively and justify their expenditures to stakeholders. By optimising the cost per hire, recruiters can contribute to the organisation’s financial efficiency while maintaining the quality of talent acquisition.
Also Read| Decrease Your Hiring Time By 70% With Video Interviews
8. Quality of Hire
Quality of Hire (QoH) measures the performance and longevity of candidates hired by assessing their impact on the organisation. This KPI can include factors such as on-the-job performance, time-to-productivity, and retention rates. By analysing QoH, recruiters can gain insights into the effectiveness of their sourcing, screening, and selection strategies, ultimately contributing to the organisation’s overall success.
9. Retention Rate
While often considered an HR metric, Retention Rate is a KPI that recruiters should also pay attention to. It measures the percentage of new hires who remain with the company for a specified period, typically over a year. A high retention rate suggests successful alignment between candidate expectations and the company’s culture and opportunities. Recruiters can play a significant role in improving retention by ensuring candidates are well-matched to the organisation’s values and long-term goals. By focusing on retention, recruiters contribute to the company’s stability, growth, and reduced turnover costs.
3 Ways Wamly Can Help Recruiters Hit Their KPIs
Wamly’s one-way video interview software offers advanced capabilities that can streamline, standardise, and assess your procedures and key performance indicators (KPIs).
Throughout this journey, recruiters can:
- Reduce time and effort spent
- Keep your overall recruiting costs low
- Improve the candidate’s cultural fit
Wamly helps reduce the time and effort spent
One remarkable ability of Wamly is to reduce the amount of time that recruiters spend during the interview process by an impressive 70%. On average, in South Africa, it takes about 52 business days to hire one candidate. Wamly can reduce this to just two weeks.
The reason behind this significant time saving is that, instead of the traditional face-to-face format, potential candidates receive a link to complete a video interview with predefined questions and a time limit. This innovative method helps recruiters save hours that would be spent in face-to-face interviews since they can simply stop watching the interview if the candidate is unsuitable.
With Wamly, there’s no need to:
- Compare schedules
- Book screenings
- Coordinate time zones
Wamly keeps your overall recruiting costs low
A bad hire not only wastes the resources spent on their employment but also signifies lost time and money.
According to Bamboo HR, 31% of employees leave their jobs within six months of starting, with 68% of those departures occurring within the first three months.
Wamly’s one-way video interview software offers the promise of enhanced and expedited hiring processes. It achieves this by facilitating structured interviews and granting managers the flexibility to review interviews at their convenience.
Consequently, managers can concentrate more on their core responsibilities, fostering operational efficiency and ultimately contributing to heightened overall company efficiency.
Wamly helps you hire better candidates faster
With Wamly, you can learn more about the person applying for a job beyond just their resume. It helps you quickly look at many potential candidates from all over the country and find the best one for the job.
Also, really good candidates don’t stay available for long. To make sure you can choose from the best people, you need to act fast. Wamly’s video interview software lets candidates record their answers to questions, so you can see if they’re a good fit for the job quickly. This way, you can decide to hire them before other companies do.
Using Wamly is easy and helpful. Candidates don’t need to download any special apps or do complicated things to use them. People who are excited about the job can start their interview process right away. The whole thing is simple, fast, and you can do it whenever you want.
In the dynamic landscape of recruitment, KPIs provide recruiters with valuable insights to measure their performance, identify areas for improvement, and make informed decisions. By focusing on these KPIs recruiters can align their efforts with organizational goals, streamline their processes, and attract top-tier candidates that drive the company’s success. As the recruitment field continues to evolve, these KPIs will remain invaluable tools for recruiters to enhance their strategies and make a lasting impact.
