Organisations often see recruitment and selection as a necessary evil and I have had managers say to me directly they don’t enjoy recruiting or they don’t understand why they spend so much time on recruitment activities. I would make the case that organisations that can understand the potential business impact of attracting the most suitable applicants to the hiring process are likely to be more successful.
Ultimately making the wrong recruitment decisions can lead to wasted time and potentially missing out on the ideal candidate, both of which have significant financial costs. Implementing the appropriate strategies can mean getting the right people in at the right time to make a positive contribution to the organisation.
Therefore it is integral that attention is paid to ensuring that your recruitment strategies are effective, therein lies the challenge…
· Measure your cost per hire – this will enable you to make strategic decisions about your recruitment budget and guide your decisions on where to invest in the future. Costs might include advertising fees, agency fees, travel expenses and administration costs.
· Measure your time to hire – this is normally from the time at which a new vacancy is approved to go out to advert to the time that an offer is made to a potential candidate. It is critical to understand how long it is taking to fill your open positions. Every day a position is open you are losing money so the faster you can fill your positions, the better you are serving your business.
Measuring these two key metrics will assist you in evaluating whether your recruitment efforts are delivering you the right candidates within a reasonable time frame for a good return on investment.