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How to Measure Recruitment. Ian J. Cook, CHRP. BC Human Resources Management Association. Introduction. Session overview. The Foundation What are HR Metrics ? When HR should use metrics. Recruitment Metrics How metrics link to recruitment How metrics support recruitment
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How to Measure Recruitment Ian J. Cook, CHRP BC Human Resources Management Association
Session overview The Foundation • What are HR Metrics? • When HR should use metrics • Recruitment Metrics • How metrics link to recruitment • How metrics support recruitment • How to use your results • How to get started
“Far too many people – especially people with great expertise in one area – are contemptuous of knowledge in other areas or believe that being bright is a substitute for knowledge. First-rate engineers, for instance, tend to take pride in not knowing anything about people…. Human resource professionals, by contrast, often pride themselves in their ignorance of elementary accounting…But taking pride in such ignorance is self-defeating.” Peter Drucker, professor and management consultant, writer of several books and articles including “The Practice of Management”. Excerpt from “Managing Oneself,” Harvard Business Review March-April 1999
What are HR metrics? • A method of quantifying the impact of HR, its programs and activities • Can measure both efficiency and effectiveness • Effectiveness = outcomes, how well did we do? • Efficiency = inputs, cost, speed • Are ratios, not cardinal numbers • Also referred to as: HR analytics, human capital metrics, Key Performance Indicators (KPIs) Measuring outcome not input Measuring results not activities
Understand the basics Volume through the year: • # of Vacancies or Vacancy Rate? • # of Hires or New Hire Ratio? • # of Promotions or Promotion Rate? • # of terminations within 1st year of hire or 1st Year Turnover Rate? • Source of hire? …which of these are metrics?
Why HR should use metrics Good idea? Good execution?
When HR should use metrics • Build a business case • Identify problem or opportunity • Track progress • Review results • Manage risk • Built in accountability – who is doing what and when • Create transparency – who is doing what and why
Why recruitment metrics 1. One of HR’s primary responsibilities is to supply the right people, at the right time, in the right place - We own and manage the talent supply chain 2. The quality of the talent in the organization makes a big difference to organizational results -It is important to run an optimized talent supply chain 3. The costs involved in the recruitment process are a significant part of the HR budget - It is important to monitor and quantify how effectively and efficiently this investment is being delivered
Recruitment metrics • Source Time • Screen • Select • Secure Quality Cost
The elusive “quality of hire” How do you measure quality of hire? How do you define quality?
Some QoH possibilities • Performance Rating • Promotion Rate in x years time • % of new hires retained after one year • Rate of productivity with other new employees or current employees
It’s about buyer’s remorse and whose got it New Hire Organization Resignation Rate Involuntary Turnover Rate 90 day or 1st year Resignation Rate 90 day or 1st year Involuntary Turnover Rate
Quality of Hire - what everyone else is doing Source: Conference Board of Canada
Recruitment metrics • Source • Recruitment Metrics • External Time to Fill • External Cost per Hire • Vacancy Rate • External Offer Acceptance Rate • 90 Day Turnover Rate (Vol or Invol) • 1st Year Turnover Rate (Vol or Invol) • Diversity Ratio • Hiring Manager Satisfaction • New Hire Satisfaction • Screen • Select • Secure
Recruitment metrics • Source • Recruitment Activities • Tracking candidate pools • Posting jobs or sourcing candidates • Pre-screening interviews / assessments • Interviews or assessment centres • Re-location programmes • Orientation programmes • Screen • Recruitment Metrics • External Time to Fill • External Cost per Hire • External Offer Acceptance Rate • 90 Day Turnover Rate (Vol or Invol) • Select • Secure
Using recruitment metrics What the numbers tell us….
Communicating your results What is the key message? • Choose your core message, forget everything else • Tell a “story” • create a 10 second elevator speech • provide evidence for your story • what happened in the past; what is projected to happen in the future • tell audience why they should care • recommend a course of action Tip: Provide both the good and the bad news to build credibility and gain support.
Using recruitment metrics 1st Year Turnover = 100% 175 175 50% 50% 50% > 30 DAYS >1 YEAR 96
How to get started Use the glossary • HR Metrics Standards & Glossary • HR Metrics Interpretation Guide How many metrics? • Choose at least 3 metrics • Choose at least 1 efficiency and 1 effectiveness measure • Add information, anecdotal or qualitative to tell a story
How to get started • Source • Recruitment Metrics • External Time to Fill • External Cost per Hire • Vacancy Rate • External Offer Acceptance Rate • 90 Day Turnover Rate (Vol or Invol) • 1st Year Turnover Rate (Vol or Invol) • Diversity Ratio • Hiring Manager Satisfaction • New Hire Satisfaction • Screen • Select • Secure
Tips to get started asap • Use Excel and find out how much source data you already have • Involve others and ask for help: HRIS, IT and Finance • Invest in inputting data correctly, consistently and on-time • Make everyone accountable, make it a job requirement
www.hrmetricsservice.org Lisa Irish or Ian Cook Lirish@bchrma.org 1.800.665.1961 ext. 125 email@example.com
Resources – web 2.0 Web 2.0 • Blog – When Good HR Metrics Go Bad: http://measuringtalent.wordpress.com • LinkedIn – Measuring Human Capital (group) BC HRMA – Human Resources Management Association (group) • www.ere.net for recruitment
Resources – through BC HRMA Visit www.hrmetricsservice.org to get a copy of: • HR Metrics Standards & Glossary • HR Metrics Interpretation Guide The Foundations of HR Metrics November 16, 2010 Winnipeg Linking Metrics to Strategy January 25, 2011 Webinar To register, visit: www.hrmam.org
Resources – books Investing in People: Financial Impact of Human Resource Initiatives by Wayne Cascio and John Boudreau Ultimate Performance: Measuring Human Resources at Work by Nicholas C. Burkholder with Scott Golas and Jeremy Shapiro