We use recruiting KPIs to assess the efficiency and effectiveness of our recruiting measures. Key Performance Indicators (KPI’s) are metrics that are used to clearly illustrate the performance of the particular service being measured.
Why are KPI’s important?
KPI’s help you to keep an overview of the performance of your company, a specific department or individual processes or machines.
With KPI’s you can see if you have reached your goals or how far you are from reaching them. By comparing KPI’s you can determine how performance is changing over a period of time.
In addition, by comparing your own KPIs with market-wide KPIs, you gain an overview of where you rank in the market environment and which KPIs you should work on in particular.
KPI’s for the Recruiting?
Even in recruiting, there are certain KPI’s that help you get an overview of your work and make it even better. We have summarized our most important recruiting KPI’s along the recruiting funnel for you:
- Research quality
An important recruiting KPI for us is search quality. It provides information about how suitable our search actually is for the job. The candidates found in the active search are analyzed. Candidates who do not meet the requirements for the position will be disqualified. The more candidates are disqualified, the worse the search quality becomes. This recruiting KPI is calculated by dividing the candidates in the “disqualified” phase by the candidates in the “sourced/found” phase. As a rule, we expect a target search quality of 96%.
To keep your research quality high, you should make sure that you have understood the requirement profile correctly and know exactly what the customer is looking for.
- Feedback rate
The response rate indicates how many of the candidates actually responded. You should set realistic goals for this recruiting KPI. As a rule, it is one of the KPIs that are relatively difficult to achieve and require a lot of expertise and also understanding of the target group and requirements. You can calculate the KPI by dividing the number of responses by the number of candidates contacted. We expect an average response rate of 15%.
You can increase the response rate by looking as closely as possible at the profiles of your candidates and writing personalized cover letters. Feel free to check out our article for effective LinkedIn InMails.
- Number of positive feedbacks
As part of the feedback rate, the number of positive feedbacks is almost more important for the recruiter:in, as only these candidates lead to an initial interview. Positive feedback therefore means that the candidate is interested in an initial exchange and would like to learn more about the position. You can find this number by dividing the number of positive feedbacks by the number of all feedbacks. We generally assume a target recruiting KPI of 20% here.
Sometimes candidates also need a little convincing. Therefore, look carefully at the reasons for rejection. Perhaps the candidate has only skimmed the job and is missing important information, such as the possibility of a home office. In general, you should always ask for the reasons for rejection. The answers could give you helpful insights for your search or cover letter.
- Transfer to telephone interview
This recruiting KPI indicates how many initial interviews actually take place. We do not always interview all candidates who are interested. Sometimes candidates drop out because they have accepted another offer or are no longer interested. In some cases, candidates no longer respond or do not appear for the interview after all. The actual number of interviews divided by the number of interested candidates results in the Recruiting KPI Conversion to telephone interview.
In order to achieve a good KPI here, it makes sense to give the candidate as much information as possible in advance so that he/she knows what he/she is getting into and wants to know more about the company and the job. Reminder emails can also be used to prevent candidates from forgetting appointments.
- Success rate – telephone interview + introduction to the customer
These are two recruiting KPIs that describe the transfer of the candidate(s) from us to the customer. The success rate for telephone interviews describes the number of candidates who continue to be a good fit after the initial interview with us. Here we expect an average rate of 65%. It is calculated by dividing the number of suitable candidates after the interview by the number of candidates with whom an initial interview was conducted.
The success rate of introductions to the customer describes the number of candidates who are considered suitable by the customer and are invited for further interviews. Here, the quotient of the candidates perceived as suitable by the customer is formed by the number of candidates presented.
- Success rate – interviews at the customer
The success rate for customer interviews describes the number of candidates who successfully complete the individual phases of the process. Here, a new success rate can be determined after each phase by dividing the number of candidates remaining in the process after the phase by the number of candidates who started in the phase. In this context, the hiring process at the customer’s site can comprise any number of phases.
With Kooku, we expect an average success rate of 40% here. In this phase of the recruiting funnel, the recruiter often no longer has any influence on the process. However, the customer can be offered to participate as an expert in the further phases. The recruiter can thus act as a mediator between the candidate and the company and continue to positively influence the KPIs. In addition, collecting this KPI helps to understand the hiring process even better. For example, we can inform candidates in advance about the process and prepare them for it.
- Success rate – contract negotiation
Last but not least, we come to the success rate in contract negotiation. This recruiting KPI analyzes how many candidates accept the job after the contract negotiation. Just like the success rate for interviews at the customer, we have little influence here. Nevertheless, we gain helpful insights about the customer, the candidates and the process.
Conclusion:
The listed recruiting KPIs are created along the recruiting funnel that a candidate passes through with us. Starting with the sourcing up to the contract negotiation with the customer.
If we find that we are not meeting certain recruiting KPI’s, we investigate the reasons why the corresponding KPI was not met. We share the resulting learnings with the whole team. On the other hand, of course, above-average KPIs can also provide exciting insights that will help us in our future recruiting work. The presented recruiting KPI’s can therefore help you to make your work even more effective and efficient and help you to recruit successfully.
