Employees are one of the most important assets that a company has but, for that asset to be of quality, it is necessary that a adequate selection process how to allow incorporate talented workers into the organization.
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Traditionally, it has been thought that success in the selection process is being able to fill the position, and it is true that this is important, because not all companies that publish a vacancy manage to find the right candidate.
However, hiring an employee for a position does not mean that the selection process has been effective. In order to know how efficient it has been, we must pay attention to factors such as the cost of hiring, its quality, or the retention rate, and for this we must pay attention to very specific metrics, as we will see later.
The importance of measuring the success of the recruitment process
Establishing a series of KPIs or indicators to measure the success of the selection process, monitor the results, analyze them, and draw conclusions, implies an investment of time, effort, and money. Is it really worth it to the company?
The truth is yes. Because, when we apply really effective talent recruitment techniques, we managed to attract and retain talented employees to the company and high performance, whose effort and skills contribute to business success.
When a work team is made up of people who really fit the profile that was necessary for the position they occupy, a improved performance and employee engagement. In turn, absenteeism and turnover rates drop.
In other words, by measuring the success of the selection process, we are getting save the company money (covering absences and sick leave costs a lot of money) and, at the same time, we are equipping it with much more productive employees, which will contribute positively to the generation of economic returns.
What really is a successful recruiting?
It is difficult to define it, because surely each member of the organization will have different opinions about what this concept implies. In general terms, we can say that the process has been a success if has been objective, fair with all candidates, and predictive.
We are not just looking for the perfect employee to fill a certain position today. We need a person who is still suitable for that job after some time has passed. That is capable of developing new skills and adapting to the changes that are to come.
If the profile of a candidate is a good fit for the position at present, but he lacks the soft skills that allow him to evolve, in time he may no longer be useful to the company, which will force a new process to start. of selection.
In short, we can say that a successful recruitment is one that will allow us fill a long-term vacancy, with a person who contributes their talent to the organization.
As we said before, in order to be able to objectively assess whether we have achieved success in hiring, we are going to have to pay attention to a series of metrics or KPIs.
These indicators will give us information about how close or far the company has come from reaching the goals that it had set in terms of personnel selection. Based on the results, different actions can be carried out:
- Identify the most effective recruiting techniques.
- Adjust the strategy to those techniques that are known to work best.
- Make strategic decisions about the investment of time and money in the selection phase.
In order to be able to follow up, we must compare the results obtained in each monitored process with previous procedures. For example, compare hiring results on a semi-annual basis, or year over year.
Choosing metrics is not always easy, but it is advisable to use those that have a long-term vision. In addition, it must be taken into account that the factors that are more complicated to measure are those that can provide more useful information.
For example, if a business measures how the company's capacity has been in the last year to select and incorporate high-performance candidates, the information obtained through the analysis will allow us to increase this type of hiring in the immediate future. .
The most used metrics to measure the success of the recruitment process
The choice of one or the other KPIs depends on the specific objectives pursued in the selection of personnel, since not all companies have the same goals when it comes to onboard new employees. However, there are a series of metrics related to this topic that it is always good to keep in mind.
Seek to answer the question How much does it cost the company to hire a new worker? To do this, it is necessary to calculate everything spent throughout the selection process. For example, the money spent on posting jobs, the recruiter's time and salary, or the cost of training the new employee to become a working member of the workforce.
The formula is as follows:
Cost per hire = (internal recruiting costs + external recruiting costs) / total number of hires.
For these purposes, internal recruitment costs are all internal expenses of the company associated with the search for candidates, and external costs are those that involve paying third parties, such as hiring a temporary employee to cover the vacant position, or assistance to job fairs.
It is a very important metric and, at the same time, a phenomenon difficult to measure. Its objective is to try to give a value to what the new employee contributes to the company, evaluating their performance at all levels.
To obtain this type of information, we can resort to techniques such as a survey of the direct boss of that new worker, or an analysis of how the performance of the team in which they have joined has changed.
Hiring quality can also be measured through other KPIs that help identify areas of opportunity:
- Difference between the candidates who have signed up for the offer and the number of candidates hired. It helps determine the company's ability to attract the attention of talented people.
- Dropout rate. It is the number of candidates who show interest in the job offer but end up leaving the process voluntarily before reaching the end of it.
- Acceptance rate. It tells us the number of job offers made by the company that have been accepted by the candidates. If the result is high, this means that the proposed offer is competitive and interesting.
Time needed to fill a vacancy
One of the keys to the success of the recruitment process is that it be quick since, every day that the position is vacant, the costs of the company are multiplied. Because hiring costs continue to grow, and because more resources have to be invested to try to carry out the work of the position that is not currently occupied, and this means paying overtime, or hiring someone on a temporary basis.
One way to measure this indicator is set a deadline for completion of the selection process. Then, the contracts made within that time limit and those that have been made outside of it are evaluated.
This can help us detect inefficiencies in the process, and refine it little by little until a system is achieved that allows finding the right candidate in the shortest possible time. For this, it will be necessary to make adjustments in matters such as the definition of the job, the determination of the essential skills in the future worker, or the places where job offers are published.
It is not enough to hire, the company must be able to retain its new employee. If the choice of the candidate has not been the right one, a great deal of time and money will have been wasted, and in the end a new selection process will have to be undertaken, which will mean that filling the position costs twice as much.
The mathematical formula to obtain this data is as follows:
Retention rate = (total number of employees at the beginning of the period – number of employees who have left) / total number of employees
If we are interested in knowing only the retention data of new hires, we will not take into account the total number of employees of the company, but the total number of employees hired in a certain period.
Recruitment success can be tricky to measure, yet knowing this data is absolutely necessary to continue to improve recruiting effectiveness. KPIs like the ones we have seen will help us to detect the strengths and weaknesses of the company's hiring process, and to be able to make adjustments to it to improve its effectiveness. The result, a much more talented and valuable workforce.
A good way to improve the selection process is by evaluating the soft skills of the candidates before hiring them with Hirint. If you want to know how this can help you improve your selection process, book your demo here