20. Februar 2021

Let's talk about Talent acquisition metrics and Recruitment

In today’s blog we will discuss talent acquisition metrics and recruitment process in general.

Before we start with the TAM also known as recruitment KPI a short intro about recruitment and essential factors by job-related decisions.

Many millions of selection decisions are made every year. Entrepreneurs should choose the effective recruitment tools, pick appropriate candidates, or match employees on the board with open vacancies to meet their expectation in terms of personal development.

Both sides have a common interest in comparing people and activities (inclusive environment) in such a way that a satisfactory solution is found regarding as many target criteria as possible.

The First step that should be discussed is the relation between requirements, selection and future promotion.

The conditions included in job description must be compared with skills and knowledge of applicants. The best possible match guarantees the success by covering the vacancies and gives hope for solid performance in the future. Not all known job requirements stay unchanged through the whole live work cycle of an employee. Enlargement and enrichment of work content are well-known definitions, which describe the process of scope or tasks content transformation. Nowadays is highly recommended predicting how potential employee will evolve in next years. Effective method to outline someone’s development potential it to compile all information about personality, which could be useful for company goals achievements.

Crucial employees’ characteristics:

· Intelligence (learning ability)

· achievement motivation

· social competence

· conscientiousness

· willingness to change

Those 5 Attributes can be investigated with psychological instruments. Lack of weakness in each of those features can be compensated though trainings.

Good to know!

Recruitment first steps - Important prework

1. Evaluation and analysis of job description, management policy

2. If vacancy includes novel duties gather all useful information from comparable positions

3. Interview with experts

4. Extreme group analysis (compare successful job holder and unsuccessful job holder)

All this information allows you to prepare:

1. Requirements profile

· Job-specific requirements – attainments, skills, knowledge

· Cross-activity requirements - general success-relevant characteristics, development potential

· satisfaction potential- interests, needs, values

2. Active sourcing

3. Applications screening

4. Interviews:

· situational interview

Independent from the past, most valuable are present sills, reactions - for instance candidate have to solve special case during interview: Tough situation at work

Example: One of your team colleagues is gossiping about you. In his opinion your spent too much time by preparing simple tasks. He believes that you’re good expert but not enough motivated. He even described you as a lazy person.)

· Situational judgment test

· biographical interview (experience and the given positions requirements present the best possible match)

Best practice--> Combination of both methods in multimodal interview

Example of questionnaire with biographical question:

What is your experience according teamwork? Please tell us some examples.

Did you have to deal with a difficult situation caused by some misunderstandings or disagreements in your workforce?

How you approached this issue, what was your problem solution?

Did this situation have some impact on your team, what was the outcome?

Rating notes:

1. Candidate works grudgingly in team. He tries to avoid misunderstandings and disagreements. Dealing with tough situation which requires usage of soft skills isn’t his strength.

2. Candidate works willingly as a team member. He perceives problems and makes suggestions to solve them.

3. Candidate valuates the team work as extremely productive. He seeks proactive for best solutions. He shows involvement and creativity to find the best solution.

Top talent acquisition metrics:

ü Time to hire (Bewerbungsdauer)

Time to hire calculations are crucial talent acquisition metrics that measure the efficiency of the recruiting process including applications, screenings, and interviews. This measurement can also reveal the performance of recruitment tools in technical matter.

DATE OF HIRE – DATE CANDIDATE ENTERS THE APPLICATION TRACKING SYSTEM

ü Vorstellungseffizienz (I couldn’t fine an english version)

Quantitative measurement that revels how many applicants which entered ATS were invited to interview. As less interviews needed to hire as more effective recruitment process.

ü Sourcing Channel Efficiency (Effizienz der Beschaffungswege)

This measurement shows you where all your candidates come from, where your candidates are entering the pipeline

Important:

To increase your recruitment efficiency, you need to optimize your source channels.

NUMBER OF CONVERTIONS BY CHANNEL X – AVARAGE NUMER OF CONVERTIONS BY ALL CHANNELS

ü Personal recruitment costs (Personalrekrutierungskosten)

To recognize which of overall cost can be classified as PR cost is crucial in this case. This KPI helps you to weigh up an efficiency of source channels and theirs costs.

ü Candidate Experience (Net Promoter Score)

The candidate experience encompasses the entire recruitment and hiring process. It includes how candidates discover a position, develops interest, applies, interviews, and either receives a job offer or a rejection. An insufficient or better to say poor candidate experience could decimate recruitment efficiency. For instance, if your candidate indicates a slow screening or application process, it can directly affect your company’s reputation.

ü Recruitment rate / Einstellungsquote

Ratio between applications and hirings. Recruiment rate indicates the quality of recruitment process.

ü Quality of Hire

This measurement determines the quality of hires through performance and retention data. It’s also helpful to measure how your recruits fit with the company culture. If recruiters and hiring managers are pulling in what look like great hires who leave within the first six months, it’s possible that they’re screening for the wrong traits and aren’t surfacing the best candidates.

You can also investigate and use other KPIs in your recruitment measurements cockpit.

Applicants per job advertisement / Bewerber pro Stellenanzeige

Key figures from online job boards / Kennzahlen von Online-Stellenbörsen

Transfer rate after probationary period / Übernahmequote nach Probezeit

Recruitment cost per vacancy / Beschaffungskosten pro Eintritt

Effectiveness of internal and external recruitment channels / Quote interner und externer

Unoccupied vacancy percentage / Prozentsatz Unbesetzter Stellen

Active Sourcing

Cost-of-vacancy

Advantages of using TAM:

1. Finding the best recruitments channels

2. Possibility to assess a recruiting team’s strengths