The HR Numbers You Should Always Have in Mind.

Article written by Ashley Lipman

Edited by Bhumika Zhaveri

As a hiring manager, your top priority is to know where you and your company stands. Your company has goals that need to be met, and in many ways, you’re the first step to achieving those goals. You need more than just the right hiring and recruiting methods, you need the right numbers and data points. There’s more to hiring than just knowing how many job ads you’ve posted recently and how many resumes you’ve read, or agencies engaged.

We know how recruitment has evolved in the last decade, but with a lot greater digital intervention are we making the most of the data points available? In this guide, we’ll talk about the important metrics to have at the front of your mind while hiring to keep the process running smoothly.

Time-To-Fill

More important than how many ads you’ve posted or how many responses you’ve received to those ads is the time-to-fill. This number is the amount of time it’s taken since the day the position became open for your new hire to formally accept the position. Companies want this number to be as low as possible to eliminate gaps in work. Different industries and different positions will have different time-to-fill averages. More skilled positions will likely take longer to fill, and these will be higher cost hires.

Cost of Hire

How much time (and money) is spent trying to find new applicants for positions? Depending on the position you’re trying to fill, the cost can be higher than you think. Hiring for a retail position will likely have a much lower cost of hire than a management position. There are a lot of different things to consider when calculating the cost of hire. First, how much time do you spend posting on job boards, briefing agencies, having passive conversations? There might be a financial cost associated with this as well, if not a tool than team time.

Next, how much time do you then spend reviewing applications and how much does this cost the company? Finally, you’ll also need to calculate the time spent interviewing and finalizing the hiring process. As a hiring manager, this cost is incredibly important.

Bad Hires

The role of the hiring manager is more important than most companies think. While hiring the right candidate takes time and also, in many cases, money, this is generally less expensive than the cost of a bad hire. If positions go unfilled for a long period of time, more companies are tempted to fill that position with an almost relevant candidate. This can be bad news for the entire business.

 

Hiring the wrong candidate results in more than just lost time. The business also loses the money spent training that applicant as well as all time and money spent hiring that candidate. This only resets the time-to-fill calculation, and now the hiring manager has to start the hiring process over again for a new round of candidates. Ultimately, it’s always better to spend the right amount of time finding a good fit candidate than to waste both time and money on the wrong candidate.

Turnover

Finally, hiring managers need to understand the company turnover rate. These types of retention metrics help determine if you’re hiring the right people for the positions or if you need to reevaluate recruitment methods. It’s not enough to just look at how many employees leave the company. Examine the number of unwanted vs. wanted departures in addition to high performer turnover rates. Ask what it is that’s motivating these employees to leave? Are you losing top talent or underperformers? You might need to adapt your hiring strategy.

Tracking HR Metrics

As a hiring manager, it’s up to you to keep track of your company’s hiring metrics. Understanding these metrics will go a long way towards streamlining your hiring process. Use a calendar like this one here: https://www.ontheclock.com/2018-Federal-Holidays.aspx to keep track of your metrics over time.

 

At InteriMarket we take care of these metrics and more for your total contingent workforce including temps, interims and contractors, so check us out if you haven’t already. Sign up is easy and you can start using our PAYG model instantly. It is very important to note these metrics especially in the future of workforce where both perm and contingent colleagues will need to be engaged and retained at some level.

 

Article written by Ashley Lipman

Edited by Bhumika Zhaveri

Written By