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How to Measure Recruitment Performance

How to Measure Recruitment Performance

Written by James Osborne

Last edited May 8, 2023

How to Measure Recruitment Performance

As recruitment agencies compete over declining talent pools, you must keep your swords sharp to land game-changing hires.

In this regard, keeping a track of vital recruitment Key Performance Indicators (KPIs) can help. Recruitment KPIs are metrics that shine a light on the efficiency of your recruitment processes. They tell you where you stand, so you can build your way to the top.

For example, certain recruitment metrics can highlight loopholes in your recruitment networking funnel, enabling you to optimise your methods.

With the right recruitment KPIs, you’ll know exactly where to invest your time and money, so as to see lasting positive changes in your talent acquisition procedures.

Let’s explore the five critical recruitment metrics that can help assess your success.

#1. Time to Hire

This KPI reveals how long it takes a recruiter to fill a vacant position. In other words, it’s a measure of their hiring speed. Time to hire is usually calculated from the day a candidate enters an Applicant Tracking System (ATS) to the date they’re hired. As you would expect, the figures vary by job and industry.

Time to hire is an essential KPI as it allows you to locate and dispel delay-causing bottlenecks in the recruitment process. Slow hire rates can take a toll on productivity, revenue, and more importantly, the quality of hires.

If a well-desired candidate feels that you do not value their time or skills, they won’t hesitate to opt out. A recent survey revealed that 43% of potential hires lose interest if they don’t hear back from employers within two weeks of the initial interview.

So, in case you notice that only a handful of the initial applicants make it to the finish line, it may be time for you to review the length and accuracy of your hiring method.

Also, it doesn’t take long for companies to sweep up top talent. Unless you optimise your time-to-hire, you can lose the best candidates to competitors in the recruitment network.

#2. Cost Per Hire

It’s no secret that recruiting and recruitment training are big investments. And, like any other business operation, you must budget and plan these costs, making sure you can draw good-quality hires without spending a fortune.

When calculating cost per hire, you take into account all the expenses associated with recruiting an eligible candidate – from advertising/referral fees to the cost of attending job fairs. Needless to say, the average cost per hire depends on the industry, role, and labour market.

Keeping an eye on this KPI prevents unnecessary spending, ensuring predictable recruitment expenses. Plus, you’ll know if it’s in your best interest to spend a few extra pounds on improving your hiring methods.

#3. Quality of Hire

Although quality of hire is a unique KPI, it can tell you a lot about your recruitment process. Once you evaluate this KPI, it can offer you the ammunition you need to improve your recruitment performance. This KPI not only helps you determine where you’ll find the most qualified people for a role, but it also tells you which screening procedure to deploy to bring them to the forefront.

Generally, this metric is broken down into two broad categories:

a) Pre-Hire Quality

It must feel great to have a sea of candidates respond to a job offer after you spend weeks attending multiple recruitment agency events. But if a majority of the applicants do not fit the job description, all your efforts will go in vain.

Your job postings may not be attracting adequately qualified candidates for plenty of reasons. Perhaps you’re not looking in the right place. Or maybe your posts are not lucrative enough. Or perhaps, you have unrealistic expectations. Unless you pinpoint the underlying issue, you won’t be able to resolve it.

Tracking the number of qualified candidates applying for every job opening may help in this regard. By measuring this metric, you’ll be able to arrive at a ballpark figure of potential hires that are qualified for the role. As a result, you’ll know where most of your desired talent pool resides.

Based on the results, you can alter your advertisement strategies to reach your target audience better.

b) Post-Hire Quality

Estimating the employee’s productivity through employee surveys and regular performance reviews will reveal how suitable they are for their role. Also, a high one-year attrition rate may point towards a problem with recruiting candidates for the role. If new hires to a position quit within a year, you may have to re-evaluate your recruitment policies.

#4. Rate of Offer Acceptance

By tracking the rate of offer acceptance, you can measure how many people accept the job offers you extend.

Obviously, not everyone will accept your job offer. It’s part and parcel of recruitment networking. In some cases, the candidate may reject the position.

However, if most candidates shy away from the job, consider it a red flag. It may mean that your company has a bad reputation in the global recruitment network. It can also suggest that your recruitment process has a few gaps that need plugging. Either way, your offer acceptance rate will alert you to the problem, enabling you to mitigate it at the earliest.

#5. Adverse Impact

As the name suggests, the adverse impact has a negative connotation in the world of recruitment networking. Before we delve deeper into how you can measure this KPI, let’s explore what it means.

You probably think your recruitment practices are fair because you don’t consciously discriminate against candidates. On top of that, you take great measures to ensure each potential hire gets equal opportunities.

Having said that, you may be unintentionally biased towards a group of people, handing the other group the short end of the straw. This is an adverse impact on recruitment. It’s an indirect form of discrimination against members of a race, gender, or ethnicity.

As a recruiter, you should take active measures to ensure that your recruitment processes do not exclude a protected group (for example, LGBTQ+ candidates or workers over 40).

In case you do discover instances of adverse impact in your recruitment channel, audit your screening process to see where they stem from. Plus, remove all examples of accidental biases to give every candidate a fair shot.


With the above-mentioned KPIs, you’ll get the insight you need to make data-driven decisions that advance your recruitment objectives. Plus, they’re sure to help you establish time-efficient hiring policies that don’t drain your capital.

If you want to learn more about enhancing your recruitment performance, feel free to get in touch with us at The Recruitment Network. We are a community of recruitment leaders devoted to advising, mentoring, and helping upcoming generations of talent acquisition specialists scale new heights of success.

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