An organisation is built by its workforce which keeps on evolving over time. An effective talent acquisition strategy can save your company more than just time and money. It can fetch you the brightest fish in the sea.
While every company’s requirements and working varies, you can always begin by taking a clue from these seven basic tips to measure the success of your talent acquisition strategy.
Quality of hire
The quality of hire is indicative of the contribution of the selected candidates to the company’s growth. This shows how the selected candidate performs in the first few months and how well he/she is fitting into the company’s culture. This can easily be assessed by taking into record the manger reviews, attendance reports, performance feedbacks and the overall status. The quality of hire is one of the most genuine metrics to test to your talent acquisition because ultimately, companies are looking to extract and have on-board the best talents out there.
Cost associated with each hire
Money is a big success determinant for any workplace strategy and therefore cost of hire is a clear reflection of how effective your hiring process is. It encompasses all costs beginning from the start of process including source costs, referral costs, interviews with relocation costs, travel costs and more depending on the kind of organisation.
The sum of total internal and external recruiting costs divided by the number of hires gives you the cost per hire. If you end up spending more in the recruiting process and end up gaining only a few good candidates, then you need to improve upon your strategy.
Qualified candidates per hire
The candidates actually passing the initial application process fall into the category of qualified candidates. This is an important evaluator of the success of a talent acquisition strategy because you will get good hires only when you attract the right candidates. When the qualified candidates are decreasing, it is a clear sign that organisations need to revamp their initial screening processes with clearer job descriptions and better communication to allow the fit candidates to enter the pipeline.
Offer acceptance rate
The number of candidates accepting the job offer divided by the number who were offered the job gives you the offer acceptance rate. Consistently getting a low offer acceptance rate is an indication that the candidates need to be assessed better. While sometimes candidates can refuse your offer owing to the fact that they got another offer with a better salary or work culture, there is always a possibility that your job descriptions, compensation and other valuable aspects like salaries, flexibility options require revision and improvement.
Attrition Rate
Attrition rate speaks of the number of candidates moving out or leaving the job measured over a period. The normal attrition rate or employee turnover is usually around 10-12%. However, if your company is seeing a surge in this ratio then you surely need to dig deeper. Usually, a higher attrition rate means that the employees are not satisfied or aiming for better offers. If the selected candidates are leaving the organisations at an early-stage, then it affects the parameters like cost per hire, time-to-fill among others as the talent acquisition team has to begin search all over again for another talent.
Time to fill
We cannot even begin to emphasise the importance of a valuable asset – time in any organisation, big or small. The time-to-fill a position is a quick yet effective metric for measuring whether your talent acquisition strategy is on-point. A low time-to-fill is better for the recruiter as well as the candidate because it helps in a reduced cost-per-hire and ensures that good candidates are not lost in time.
It was found that 57% of job seekers lose interest in the job offer if the process is very lengthy. On an average the time-to-fill is between 7-15 days is considered normal for majority of the organisations.
Source analysis
Be it the social media profiles or the job boards, every company has a different recruitment policy that regulates the technology and methods used to gain the attention of job seekers. Identification of the most useful resources can help focus steer in the right direction and help you make the most out of the hiring process. Usually, the sources that work for you can be identified by categorising each candidate based on the sources like LinkedIn, Facebook, Twitter or other social media channels or from website job boards to see what works the best for your company. This analysis will help you in getting multiple entries from aspirants and will also ensure that investments are made in the right zones.
The parameters can always vary but the talent acquisition strategy should be such that it yields talented employees who provide real value to the company in the long run.
