Never in the history of mankind has the word “data” been more prevalent. Technology has given us the ability to collect and store seemingly endless amounts of information, and the pressure to extract key insights from these numeric treasure troves is increasingly mounting.
While the world of hiring may not claim the same mountainous data build-ups that the banking industry does, successful recruiters and hiring leaders nonetheless need to be number-crunching and making effective decisions based on facts and figures.
If this isn’t your forte, it can all seem rather intimidating – but it doesn’t have to be. So in this post, I’ll lay down the top 4 recruiting metrics every recruiter or HR professional should understand.
Traffic or Clicks
The first thing you will want to look at when you are putting your positions out on the web is the traffic or the “click throughs” your job listing gets from the different sites where it’s posted. Measuring traffic can tell you various things, both good and bad. For example, let’s imagine your job post has published for weeks but is seeing little to no traffic. This may indicate that there is competition out there for similar roles. In this scenario, it might be a good idea to invest some money into a sponsored job post or premium advertising to make your role stand out from the crowd.
No budget for boosting your job post? Even just sprucing up your job description so that it’s more attractive to jobseekers can likely get you a boost in visitors. If you are seeing a lot of traffic, it’s definitely a good sign, which leads me to the next key metric.
CVR or Conversion Rate
So there’s a good amount of traffic flowing to your jobs, but how many of these visitors converted into applications? The Conversion Rate – or CVR – of the traffic will tell you how effective your chosen channels are and will allow you to more specifically curate the sites where you post your jobs. This metric is especially important when you are paying for advertising on these channels, rather than just getting organic, or free, clicks. Monitoring CVR will allow you to optimize your recruitment budget and spend only on the channels that are converting well for you. Also, if CVR is low on what you know to be a good channel, you can try to figure out ways to tweak your job posts in ways that produce better conversion rates on that specific site. Whether it’s changing the category or the job title, small tweaks can make a big difference in conversion.
To calculate CVR: take the Number of Applies/Number of Visitors from each of your channels. Compare the results to find the highest converting sources. Then try to find ways to optimize those that have lower converting conversion rates.
Like CVR, source effectiveness is a key recruiting metric to understand. In this instance, we are looking for sources that provide the best candidates, rather than just looking at how traffic converts into applications.
For example, you may post jobs to a site that only converted 3% of clicks to applications but which provided candidates that were hired more often than any other source. You would then want to optimize CVR for that site and commit more of your budget to advertising on the site and less on other sources. If you find one source produces better results for one type of function, use it whenever you have a similar opening.
To calculate Source Effectiveness: There’s more grey area when evaluating the effectiveness of a source, but one formula you could use to assess is Number of Applicants Brought in for Interviews/Number of Applicants from each of your channels.
Some would argue that this isn’t a valuable metric, but as they say, time is money. Having a vacant position for an extended period of time not only affects your business, it affects your recruitment budget. Productivity is compromised, and as a recruiter, you are probably spending a disproportionate amount of money trying to fill this role. From the moment you put an ad up to the moment a candidate accepts the offer, you’re on the clock. By using the three metrics above you should be able to optimize the time-to-hire metric by leveraging your knowledge and choosing to advertise on the best converting and most effective sources for the jobs you need to fill.
To calculate Time to Hire: The time-to-hire metric can be calculated by counting the number of days that have passed between the day you opened a position and the day you filled a role.
MightyRecruiter Can Help!
If all these metrics seem a bit tedious to track, MightyRecruiter has some fantastic reporting features baked right into the software. We offer a traffic report, with a CVR calculator built in for the easy tracking of the overall performance of your jobs. In addition, MightyRecruiter offers an easy-to-read source report, which allows you to see which job boards and websites are providing all your candidates. Use this report to evaluate the quality of candidates versus CVR to determine which sources best fit your needs. Use our time-to-hire tracker to keep tabs on the time it takes to fill your role. MightyRecruiter is here to help, making sometimes confusing data associated with recruitment and hiring a lot easier to understand. Click here to start your free trial today!