A targeted approach to hiring and effectively recruiting top talent
Any organization’s long-term viability depends on selecting and employing the best talent available. Especially when, according to ManpowerGroup, a third of U.S. companies are reporting difficulty finding the talent they need during a time when employer hiring expectations are on the rise, fueling the most robust hiring pace in 21 years.
A smooth hiring process uses modern tech to streamline worker classification, contracting, and payments for profitable recruiting operations. Identifying your staffing needs then quickly assessing the correct worker classification for the role is paramount to saving money without sacrificing quality or creating uncertainty in your workforce's legal status.
A helpful guide for effective recruitment in 2022
Remember that people are one of the most challenging resources to manage effectively. Every employee brings their unique skills, requirements, and expectations to work, as determined by the working relationship.
Determine which metrics to track
You're already on the right track if you're attempting to use recruiting metrics to make data-driven hiring decisions, but not just any analytics will suffice. It's critical to select the appropriate data based on your company's specific ambitions.
The most closely-monitored recruiting indicators should be time-to-hire, cost-per-employee, and retention. These are just a few crucial things to keep in mind while using a number of different recruiting indicators that can help you identify areas to improve.
Today's most forward-thinking companies prioritize the continuous development of their internal operations while assessing their success to remain competitive and relevant.
What makes a successful recruitment process?
The recruiting process includes attracting, interviewing, choosing, hiring, and onboarding employees or contracting freelancers for a certain position. Successful recruiting involves careful planning, strategy, and evaluation. Discovering more significant amounts of well-qualified people can drive corporate growth and speed up hiring time.
Filling vacancies faster means having a process to streamline sourcing and make your company more attractive to other applicants in the future who will keep you top-of-mind.
You may need to focus on recruiting freelancers as you boost the number of prospects funneling through the recruiting pipeline for full-time jobs.
Following the great resignation, many top-tier candidates have opted to work more flexibly, and have entered into the gig economy. Being open to hiring more freelancers may help you gain access to better talent, more prospects overall, and faster recruitment.
Check out “The Great Resignation, How To Outrun It & Retain Business Growth In 2022” for information about why talented candidates have opted to enter the gig economy.
Top recruitment metrics to track in 2022
Recruitment metrics measure the effectiveness of your company's recruiting and hiring processes so you can see how well it worked at attracting, hiring, and retaining candidates.
Performance metrics for recruiters also more clearly identify areas of the hiring process that can be improved upon. We measure a few key performance indicators to recruit top talent effectively.
- Time-to-fill a job position
Finding and hiring a candidate takes time - from when you approve a job request until the candidate accepts your offer. The time-to-fill metric calculates how long it would take to find and hire a new employee or freelancer.
Calculating time-to-fill is a significant factor to track because hiring can be an incredibly expensive and lengthy process. To be more successful, focus on lowering your time-to-fill while reducing turnover. A strategy for drastically cutting down on time-to-hire is to look for ways to incorporate freelancers into your business.
How to optimize your recruitment strategy with several qualified candidates
Connect with candidates who aren’t actively looking for work (technically considered poaching) to expand your pool of possible talent. Reaching out to employed talent can help you widen your hiring funnel for current and future job openings while also increasing the number of suitable candidates.
Not only do you want potential prospects to be aware of your job opening, consider it, and eventually apply, but you also want them to be actively involved and share job openings on your behalf.
- Optimizing recruiting costs
Recruiters can save money by reducing their expenditure on channels that don't bring in high-quality applicants. It's not only about cutting costs, but it's also about hiring more intelligently. Your hiring process will be smoother, stronger, and more cost-effective if you optimize your recruiting expenditures.
The average cost-per-hire (CPH) varies by industry and position, but the overall cost-per-hire is calculated by dividing the recruiting cost by the number of hired workers.
CPH = Total Recruiting Cost / # of Hires
Cost should be included in associated expenditures, like posting a job, referral fees, hosting at job fairs, speaking at events or universities, running sponsored ads on LinkedIn, or any other cost of procurement such as administrative tasks linked to finding new workers.
Once you find the perfect worker, calculate what it costs to onboard them, like background checks. Looking at the big picture, you can start to identify areas where you can enhance efficiency and reduce your recruiting budget.
The selection ratio
The Selection ratio measures how competitively placed your job offering is within the broader market. Suppose your open positions consistently generate high volumes of applicants relative to the number of people you end up hiring per position. In that case, it indicates that those positions or employment with your organization, in general, are highly sought after.
The selection ratio can be calculated by dividing how many candidates you hired by all the applicants who applied for a specific position. If you're measuring the selection ratio for multiple positions, divide the number of hired candidates by the total number of applications for all positions. A good selection ratio increases the interview-to-hire ratio.
How many people did you have to interview before you popped the question?
- Interview-to-hire ratio
The interview-to-hire ratio shows how many candidates were interviewed before you offered them the job. The number of qualified candidates per hire is also a good indicator of how well your recruiters or hiring managers are doing.
This metric is produced by counting the number of interviews a recruiter had to conduct before hiring someone. Ideally, it should be between five and seven people, but interview as many people as it takes to find a quality candidate!
In the recruitment process, automate as much as possible.
Use an applicant tracking system to get the most out of your interview flows, especially when vetting a high volume of candidates. You'll be able to automate where you publish job advertisements, keep track of how many people apply, and filter resumes to identify the best candidates. You'll be able to spend more time building relationships with potential hires now that you've saved so much time.
- Offer-acceptance rate
The offer-acceptance rate (OAR) is calculated by dividing the number of candidates who accepted a job offer by the number of candidates offered a job.
OAR = # of Accepted Job Offers / # of Candidates Offered the Job
A low rate indicates that compensation may be too low. When these issues arise, try discussing salary with your candidates earlier in the recruiting process to reduce the impact of the offer acceptance rate. Feel free to include money in the job description or inquire about the candidate's wage expectations.
Quickly appointing the correct person can be best for a growing organization or business with an urgent staffing need. Make an offer as quickly as possible after you've found a suitable applicant because candidates might simultaneously be receiving other job offers. You don't want great applicants to be snatched up by a competitor.
Compensation management best practices
To confirm that your pay is competitive, examine a reputable source such as the United States Bureau of Labor Statistics (BLS), which publishes geographical wage statistics segmented by occupation.
Conduct frequent audits across gender, color, age, ability, and other factors protected by anti-discrimination laws to ensure your pay practices are equitable and legal. Equitable pay will likely attract better-qualified talent overall.
Diversity and inclusion hiring practices
Hiring people who are different from you often yields the most complimentary and unique abilities. These differing backgrounds can enhance innovation, and spark new solutions for businesses, so consider taking steps toward hiring more diverse candidates.
Measurements for hiring satisfaction
Surveys are used to get feedback from managers, peers, and team members on a new hire's culture fit and performance, and evaluations can determine whether the new hire's job performance is on track.
An effective recruitment strategy guarantees a clearly defined set of objectives against which efficacy can be measured. Worksome gives you the tools to easily manage, contract, pay, and classify your flexible workforce, book a free demo today.