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Quality of Hire versus Time to Fill: The Formula to Improve Talent Acquisition

Comments Off on Quality of Hire versus Time to Fill: The Formula to Improve Talent AcquisitionWritten on May 22nd, 2015 by
Categories: Corporate Recruiters, Human Resources, Third-Party Recruiters
RecruitAlliance - Metrics Matter

One of the most essential recruiting questions a company can ask is "How long does it take to fill each open position?" After all, every day a position is left open, the company is either losing money or not addressing a business issue. It stands to reason, the faster recruiters can fill positions, the better they can serve the business as a whole. Metrics like “time-to-fill” and “cost-per-hire” only tell us about the process, not its impact. What matters most is how new hires perform and how much they contribute to your organization’s growth and goals.

Gaining Insight from the Numbers

Once you determine which positions are taking longer to fill, you should then investigate the factors responsible for the slowness. Here are several common situations that typically lead to a drawn-out time-to-hire:

  • Hiring managers may not be reviewing candidates as quickly as necessary.
  • Recruiters may not be following up with candidates in a timely manner.
  • Recruiters may not be posting on the most relevant job boards for the position.
  • Job requirements may be too lofty, driving away candidates before they apply.
  • Adddressing these issues can create immediate positive results for your recruiting strategy.

    The quality of hire metric can take your team from reporting straight stats to reporting on effectiveness. By simply working with your finance department and CFO, quality of hire metrics can be use to support and make strategic decisions, while supporting HR in the boardroom in ROI-based discussions.

    Because of its organizational impact, quality of hire is a more important metric to track than time to fill or cost per hire.

    Balancing out the metrics your HR and Recruiting department measures can be challenging for any organization. Remember, any metric tied to the bottom-line should be a priority. Here are some ways you can leverage the Quality of Hire metric, to further increase revenue across the enterprise.

  • Work with finance to translate the ROI in dollars, the impact of having a top performer vs. an average performer on organizational productivity and revenue per employee. This knowledge can help support further investment in recruitment, onboarding and training.
  • Modify your job descriptions to reflect performance outcomes expected rather than skills and competencies required.
  • Ensure your corporate culture is transparent, to support candidate self-screening.
  • Use of panels, multiple interviewers, relevant behavioral-based questions, use of interview scoring sheets, and interview training for hiring managers.
  • You can measure the health and effectiveness of a company’s entire recruiting and hiring process by focusing on making changes to improve the process. If a recruiting leader gets these under control, quality per hire will soar, cost per hire will decline and time-to-fill will shrink. Implementing the suggested changes will not only improve the talent acquisition function, but can ensure organizational success.

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