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3 Tips for Tracking Your Recruitment ROI, New Management Roles : 04 Feb 2013

Getting smarter about recruitment is something we take very seriously. We don't think anything should be taken for granted. To this end we have created a quick survey to learn some basics about what's happening from the employer's end. Questions include 'how long it took to fill a role', 'the number of interviews required' and 'how easy was the process'. There is nothing to identify individual employers. In all, the survey should take less than 60 seconds. Once we have a reasonable response (say, 20 or so) we'll share the results with all. The link will be sent to all clients at some stage over the coming months. If you've recently advertised and would like to have your say, please email me for the link.

If you'd like to learn a few tips for tracking the value of your recruitment processes, please read on...

Investment in recruiting services, even basic job advertising can be significant and time-consuming and, in the absence of hard data, many employers revert to an 'educated guess' on what recruitment might cost for the year. Following are three key measures you can use to build up a clearer picture of what it takes to staff your facility:

1. Time to hire

Time to hire is the total time it takes to hire someone for a job; from the time you began actively trying to fill a role to the time they sign the contract. A longer time results in a loss of productivity elsewhere and higher costs (known as opportunity costs). Thus the longer the time to recruit, the lower the return on your recruiting investment.

TIP: Actively sourcing candidates for potential roles, ahead of the need, gives you much greater opportunity to connect with the best person for the role when required. For example, when a great candidate presents themselves, it may provide the impetus to fill/replace a role that was otherwise being deferred due to the enormity of the task. The time to hire becomes minimal, you are now in control and increasing the return on your recruiting investments (both time and money). The easiest way to connect with industry professionals outside of job advertising is with a subscription to HealthyPeople.


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2. Quality of hire

Quality of hire focuses on your perception of how satisfied you are with the selection of candidates to choose from and the quality of the final candidate hired. Despite its importance, quality is probably the trickiest metric to measure as it is based on perception. Thus one person's idea of a "quality" hire may be different to someone else's. However, getting quality right is fundamental as hiring the right candidate delivers bottom line profitability and makes engaging and retaining a lot easier, and thus improves ROI.

One solid measure of suitability is whether you choose to hang on to this person beyond the trial period. Someone considered 'low quality' will surely not be kept on. You might think that someone has potential but needs work, or you might be thrilled with the hiring result.

TIP: The information contained in a job ad will heavily influence the nature of those applying. The short description in the search results is as important at screening people out as much as it is inviting the right person in. Take your best employee and aim your job ad at attracting them specifically. Remember, you can train for skill, you can't train for attitude. Becky and I are always available to help put together the best possible job ad. Both in the beginning and to tweak throughout the month (if required).


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3. Cost per hire

This refers to the total cost relating to securing a hire. Such costs can include advertising of a role, resume filtering, subscription costs, candidate screening & matching, interview time and hiring administration. Obviously, the larger the cost-per-hire, the lower the return on your recruiting investment.

TIP: Are you able to identify any hidden or duplicate costs in recruitment? Consider the technology you're using and assess whether it is increasing the exposure and reach of your roles? How long are you really spending on the recruitment process? Use a time tracker to give you a more accurate view (like SlimTimer - I just found this, it's great and FREE).

Better systems and good use of technology can significantly reduce the pain and cost of recruitment. Start creating a record of your recruiting habits today. Track the time you spend each week on finding the best staff, any costs incurred and how you rate the quality of those employed. This process alone will give you a greater sense of power over the whole process.

Have a fantastic and profitable week.

Dennis Hosking
Managing Director - HealthyPeople


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