Breaking Down Big Words for Rookies

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If you have been following our blog, you will know that we have been addressing HR professionals and seasoned veterans in the latest entries, but we decided to dedicate today’s edition to the rookies.

Whenever we find ourselves in a new job, it takes time to get used to its regular ups and downs. There’s no better preparation than getting our hands dirty and experiencing things first hand. But sometimes we still need a little help along the way. Therefore, in order to make the lives of new hiring managers and recruiters easier, here are a few examples of the lingo you will be expected to know during a recruitment process or campaign.

Application Completion Rate (ACR)

The ACR has a lot to do with the Candidate Experience, which is something you can learn more about here. It shows how many people start the application process against how many actually finish it. Ideally, it should always be 100%, but that is rarely the case.

Whenever you work on a hiring campaign, you will notice that sometimes people sign up but don’t always follow through with the process. This can be due to a series of reasons: the candidate found a better or more appealing opportunity; your hiring process was too long or too complicated; etc.

Cost Per Hire (CPH)

Hiring isn’t free, nothing really is. If you want to attract the best talent to your company, you will need to spend some money on the process. Cost Per Hire refers simply to how much it costs to fill a position or a vacancy in your company.

You need to keep in mind the costs of publishing a job offer, as well as where and how you post it.

Are you using job boards or job aggregators? Some are free, but if you really want good results, you might need to pay to have your post sponsored and featured on the site so that people will find it and apply to it. Not to mention the costs of contacting applicants.

Many companies prefer contacting applicants via email due to its simplicity and low cost, whereas others prefer a phone call because it’s a bit more personal and you can immediately get a sense of the type of person you’ll be hiring.

Organizing and scheduling interviews may cost some money, especially if you’re meeting candidates somewhere outside your company’s facilities. And then there’s training; depending on what you need to teach your new workers, the amount of money that needs to be spent may vary.

Quality of Hire (QOH)

This refers to the sheer quality of the candidate you end up hiring. It can be measured by their performance, the level of commitment they have with their work, how long it takes them to pick up the pace and take the initiative, and how well they fit with the culture and personality of your company.

Retention Rate (RR)

It means how much time an employee remains working in your company after you hired them. Some positions have a low retention rate average for a variety of reasons, including lack of preparation, poor explaining of the requirements for the position, or simply the type of work.

Your retention rate can be improved by conducting a thorough hiring process. Explain every detail of the job during the interviews, including possible difficulties or obstacles, test the skills of your applicants to ensure that they’re able to perform their tasks, and do a background check to avoid hiring unprofessional or problematic people.

Time to Hire (TTH)

Many hiring managers or recruiters find themselves needing to fill a vacancy as fast as possible in order to meet a quota or to reduce the stress that an incomplete team is put under.

From start to end, the time spent in the recruitment process is what we call Time to Hire (or Time to Fill). This metric will obviously vary according to different factors, one of the most common being the type and level of the position (e.g. junior, senior, executive).

Statistically, TTH can be used to determine if the recruitment process is taking longer than it should or if it’s being rushed. If it’s the first, you may need to analyze the process in order to increase efficiency in recruitment. If it’s the latter, however, you might be skipping crucial aspects of the process and this can be detrimental to your company in the long run.

TTH is a tricky metric as it may lead to HR professionals putting more emphasis on the speed of the process rather than the quality, sometimes awarding bonuses to recruiters based on quantity of hires. This can cause poor employee performance and a low retention rate.

Source of Candidates (SOC)

For statistical purposes, some companies like to keep a record of where they get their employees from, whether it’s from job boards, job aggregators, social networks, or even by personal recommendations. The reason for this is to later invest more resources into the medium that is proving to be most effective when attracting the best talent.

So, there you have them, six terms that HR professionals use regularly. There are many more expressions in this field, but covering them all is going to take some time. Meanwhile, we really hope that we were able to shed some light on these terms and helped new HR professionals be more familiarized with the industry’s jargon.

Edu Rojas/NEUVOO
Content Marketing Editor