Understanding Recruitment Metrics: Quality

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This is the second issue of a series of articles where we explore the types of measurements recruiters use to understand the quality of their work. Last time we went over Time Metrics, we are now going to dive into the world of Quality Metrics.

The Quality of Candidates

Being a subjective matter, quality is a rather tricky thing to measure. The quality of your candidates and hires can be measured based on their profiles and overall performance after a certain time of being hired (most companies usually wait at least three months before doing so). This type of evaluation is slow, it requires a lot of attention and feedback, and it takes time. Moreover, in most cases, this type of measurement is done by managers and executives rather than recruiters.

The Quality of Your Recruitment Process

An easier thing to measure quality-wise is the hiring process itself, and the best way to do that is to take a look at your results, which are not as subjective as the ones mentioned above, as they can be measured with a mathematical formula or hard data. There are many factors that can influence the outcome of a hire, such as:

• The platforms through which a job ad is published.
• The response speed of the recruiting team when a candidate applies.
• The simplicity or intricacy of the hiring process and its requirements.
• The employer value proposition (EVP).

Some of the most common sub-categories of things that can be measured in terms of quality in order to improve the effectiveness of the recruitment process are:

Submission to Hire Ratio (SHR): This metric refers to the difference or ratio between the number of candidates that apply for a specific job ad and how many of them are actually hired. Some positions are easier to fill than others due to demand and availability of candidates. This metric allows recruiters to identify what is the approximate number of available candidates for each position, as well as the reach of their job advertising campaign.
Application Drop Off Rate (ADR): One of the simplest metrics in terms of the quality of your application process. ADR tells recruiters how many candidates enter the job ad, start filling out the application, and actually submit it. For example, if out of 10 candidates that start the application process, only 3 actually submit it, then you have an ADR of 70%. A high ADR means that there is something wrong with the application process, most likely that it is too complicated, so candidates are simply giving up.
Offer Acceptance Rate (OAR): This metric refers to the number of candidates that are presented with a certain job offer and how many of those accept the terms and take on the job. For example, if you present 10 candidates with the same job offer (not necessarily at the same time) and 8 of them accept it you have an OAR of 80%. Unlike ADR, you want your OAR to be high as it means that you are offering a good and competitive package to your candidates. Keep in mind that it takes more than just a salary offer to increase your OAR, this one is all about your EVP and employer branding.

Measuring quality may be little difficult and it may take some time, but it is a task worth undertaking if you want to get a clear image of the work you’re doing. We now have two pieces of the metrics puzzle! Next time, we’ll talk about money when we take a look at the last type of metric, Cost.

Edu Rojas
Content Marketing Editor // NEUVOO