Recruitment and Selection
Page 4 of 7
As with all measurement systems and sub-systems, one focusing upon recruitment should be designed to manage and measure staff recruitment efficiency, effectiveness, and alignment with the culture, mission, and strategy of the organisation. Apart from surveys and interviews the following represent a few ideas on how the recruitment and selection process and/or its indicators can be measured:
- Lead time or Hiring cycle e.g. time taken to fill an employee vacancy from advertisement to offer, acceptance of position and start of work.
This is a measure of the organisation's efficiency in filling employee vacancies measured by the number of hours consumed by the whole process.
- Internal Promotion e.g. % employees promoted from within the company; or % of vacant positions filled by internal promotion.
This measure that provides an indication of the focus on employee development and the effectiveness of succession planning. This can be used to encourage internal promotions, career progression, and employee loyalty.
- Internal promotion lead time e.g. average lead time to promotion; or average lead time for promotion from bottom grade to senior management.
This measure can provide data on the average time between promotions for employees in the organisation.
- Employee replacement and recruitment cost e.g. average costs involved from recruitment and induction and any loss of personnel, to being trained to basic level of role required.
This measure provides an indication of how much it costs to replace an employee. This cost may be more significant to organisations with a high employee turnover. Areas to consider include:
Personnel time (HR and/or appropriate manager(s)); Agency/outsourcing fees;
- Temporary staff coverage;
- Pay overlap of incoming and outgoing employee;
- Special pay-off conditions for outgoing employees;
- Training of recruit to basic role level;
- Any impact on production or service levels caused by the changeover; and
- Loss of human capital.
- Numerical labour flexibility (Hire & Fire) e.g. average length of employment contract; or, average lead time to recruit or lay off employees; or, average cost of recruiting or laying off employees; or, % of workers employed on short term contracts; or, % of workers who are temporary workers.
The measure of labour flexibility assesses how easily an organisation can vary the size of its workforce in line demand.
- Position acceptance rates e.g. % of job offers that are accepted.
This measure indicates the degree to which candidates are satisfied with the job offer being presented, and is also an indicator of the appeal of the organisation to potential employees and the perceptions held of the organisation as an employer. It however, may also be an indication of the skill of the originator of the advertisement!
- Vacancy fill speed e.g. average time required to fill vacancies.
This measure assesses the efficiency and effectiveness of the recruitment process.
- Interviews per job offer e.g. average number of interviews per job offer; or, % of occasions re-interviewing is necessary.
A measurement of the number of interviews per job offer, this is an indicator of the efficiency and effectiveness of the HR department and Human Resources Management process, and in particular the thoroughness of the recruitment process.
- Job offers withdrawn e.g. % of conditional job offers that are withdrawn.
This measure of the number of conditional job offers that are withdrawn can provide an indication of the efficiency and effectiveness of the HR department and Manage Human Resources process.
- Rejected job offers e.g. % of job offers that are rejected by applicants in a given time period.
The measure of the number of rejected job offers can be an indicator of the appeal of the organisation to potential employees and their overall perceptions of the organisation as an employer.
- On-time delivery e.g. % of vacancies filled on or before the date requested by the area in need.
On time delivery data provides a measure of the efficiency of the human resource department to fill open job positions in a timely manner.
- Recruiting staff size e.g. number of staff actively recruiting new employees.
A measure of the number of staff members actively recruiting new employees for the organisation, this data can be used as an input into the analysis of whether the current number of these employees is sufficient. This can be a useful benchmarking measure.
- Recruiting staff per open position ratio e.g. number of recruiting staff per open position.
A measure of the number of staff members whose role is to seek new employees to fill open positions, this measure can be used in efficiency analysis of the HR function, and is a useful benchmarking measure.
- Candidate pool size e.g. average number of candidates per open job position.
A measure of the number of candidates available to fill each position advertised, this data could indicate how successful the organisation is at attracting potential candidates.