The advent of hundreds of start-ups, new technology, and a new generation of workers has completely changed recruiting. The dynamics of talent acquisition are changing, with ATS becoming the need of the hour for improving the recruitment metrics.
John Pierce, Head of Business Development at Cetera and a prominent Forbes Councils Member, explains in his post that the modern-day Applicant tracking System strikes a balance between human touch and technology.
The present-day talent acquisition software offers comprehensive HR solutions to the hiring endeavors by helping recruiters track the recruiting game.
The dynamics of recruiting have changed drastically.
Gone are the days when candidates explore print media or job boards when searching for a job. The market has turned from employee-centric to candidate-centric. All the underlying recruitment processes, such as job description, contacting candidates, and interviewing them, has gone digital.
Let’s dive deep and understand how the recruiting metrics significantly boost by bringing online ATS aboard.
What are the Recruitment Metrics
Recruiting metrics are information gathered about candidates that can be used to compare data, set goals, and improve insight. They enable companies to improve and maintain recruiting practices.
Recruiting metrics typically include the following data:
- Where are candidates coming from?
- How are applicants applying for positions within your company?
- What skill sets do they offer?
Answering these questions about every applicant that makes it through the initial round of eliminations is critical in ensuring your recruiting practices are working well when it comes to hiring reliable, long-term employees that add real value to your company.
Would you believe that over 70 percent of recruiters fail to analyze the data gathered during hiring processes? It’s true. While you might assume that data gathered is important, many companies overlook this significant factor in the overall recruiting procedure.
There are several different types of recruiting metrics that will work well in improving the success of businesses. The problem lies within choosing what works best for your corporations. They’re not all the same. Different measures will offer various results depending on the company’s needs.
Narrowing down metrics will help recruiting efforts tremendously. Below, you’ll find a few of the most important recruiting metrics that are commonly used in successful businesses that have great results with recruiting valuable, long-term employees.
How ATS Helps?
ATS can help you optimize most of the recruitment metrics you deal with, but in this article, we will cover the most important ones that it helps you with:
- Cost of a hire
- Sourcing
- Quality of a hire
Cost of Bad Hire
A recent survey shows that the average cost-to-hire in the US is more than $4000. If a person leaves or does not join the company, the turnover cost to replace him is estimated to be around one-third of the new employee’s annual salary. Financial loss is one aspect of poor hiring; the list goes beyond that.
A high turnover rate also impacts the emotional quotient of the employees. It demotivates the recruiters and eventually slows down the production, increases the workload, and disrupts the department due to a vacant position. The turnover rate ultimately impacts the company’s bottom line, leading to sales, customer, and revenue loss.
Various factors lead to high turnover rates, such as dissatisfaction, limited opportunities, low salary, monotonous job profile, etc. Poor hiring is a prime reason for the high turnover rate, as stated by Harvard Business Review.
If you want to know all the recruitment metrics you should keep your eye on, make sure to check our post on the 15 Most Important Metrics in 2022.
ATS can help you cut down the costs of hire thanks to its advanced candidate management system that helps you source, classify, and match the right candidate with the right position. Advanced applicant tracking systems powered by AI can help you minimize the risks of making the wrong decision even further.
Where Are Candidates Coming From?
Tracking where your applicants are coming from is key.
- Are you using LinkedIn or Facebook to help in your search for the best employees?
- If so, how many inquirers are actually following through by handing in a resume?
- Which social media network is bringing in the most applicants?
- Are they reliable, once hired? Do they posses the skill set needed to exceed expectations?
- Are you getting referrals from current workers? If so, how many of the referrals are you hiring?
- Of the ones who are hired, how many have stuck around, long-term?
Sourcing metrics keep track of where the best candidates are coming from such as LinkedIn, on-campus recruiting, employee referrals, social media, or job boards.
Measuring where candidates are coming from can give you a clear idea of what efforts are working and which ones are not. If you notice that over half of the applicants found on Facebook turn out to be a waste of time, stop spending time and money searching for them there. Instead, move efforts to an avenue that’s working well.
And this is where the ATS shines. Applicant tracking systems like Recruiteze can help you keep track of where the applicants are coming from, and which channels are the most effective ones.
Quality of Hires
Once you’ve researched where applicants are coming from and how often you’re hiring reliable, quality candidates from those sources, you can focus more on new employees.
Consider these questions to help you determine whether or not your new hires are worth the time you spent recruiting them.
- Are they happy with their position?
- Do they make an impact on their position? If so, how?
- What recruiting sources did they come from?