Collecting and analyzing recruiting data not only allows you to be more strategic about how you allocate human and financial resources within recruiting, but it also allows you to better market your services as a recruiter. “Everyone knows that corporations are measurement crazy, so I have found that by not measuring something (in this case recruiters), you are inadvertently sending a message to executives and employees that whatever you are doing is not strategic or even important (because if it was, we would measure it)” says Dr. John Sullivan, CEO of DJS.
To demonstrate your value as a recruiter, you need to share what matters to hiring managers. “Your main goal should be to give your hiring managers information that is relevant to their success” says Randall Birkwood, executive recruiter and consultant at Ascendant Talent. Below, we have listed seven of the most persuasive data points for recruiters to collect and share with potential clients.
Data that Demonstrates a Recruiter’s Value
As a general theme, hiring managers will be more interested in learning about the results you are able to deliver than how you deliver them. While things like number of calls to make a connection, best time of day to make a call, best platform to reach out to candidates through, and so on are all valuable data points to collect to inform your recruiting strategy, they are less valuable for selling hiring managers on your services.
When you think about the data to share with hiring managers, think about why they are considering hiring you. “Your main goal should be to give your hiring managers information that is relevant to their success” says Randall Birkwood, executive recruiter and consultant at Ascendant Talent. They aren’t interested in hiring you to work the phones, they are interested in hiring you to fill a (or multiple) job openings.
Working the phones might be part of the process, but what hiring managers are interested in is the data that’s directly related to how successfully, quickly, and efficiently you can fill an open position. Dr. Sullivan suggests putting together a recruiter scorecard to share with potential clients. “The scorecard should only include recruiting final outputs and results” says Dr. Sullivan. “Process and efficiency measures are important but they should not be confused with outputs and results, which is what the scorecard must exclusively focus on.”
1. Quality of Hire
For a lot of hiring managers, this is the single most important measure. They don’t want to fill positions with warm bodies for the sake of it, but rather want to hire capable employees who will take their company to the next level. One way or another, you need to measure the on-the-job performance of new hires that you place. “The easiest way to measure it is by tracking the average performance appraisal rating of new hires after 6-12 months and then compare it to the average for new hires in that job or job family” says Dr. Sullivan.
Not all positions are equally challenging to fill, however. Not only should you measure how well you fill positions, but also account for how challenging those positions are to fill.“Filling high-impact, revenue and executive jobs should be given added weight, as should filling hard to hire and mission-critical jobs” says Dr. Sullivan. “Prioritizing or weighting outputs on an A+ to C scale sends the message to recruiters that some outputs and results are more important than others.”
2. Fill Rate
In Bullhorn’s 2015 North American Staffing and Recruiting Trends Report, over half of the agency recruiting professionals surveyed listed fill rate as the most important recruiting delivery process metric. Quality of hire is important, but quality of hire and fill rate are intimately linked in importance. You’re not of much use as a recruiter if you deliver great quality candidates but are only able to fill one job opening per year. The opposite is true as well.
3. Percentage of Hires by Need Date
Tied to fill rate, hiring managers want to know how good you are at filling job openings quickly enough to meet your deadlines. Of course, overzealous hiring manager fill deadlines can skew your scorecard for the worse. Avoiding that is part of doing your job well. “It should be a recruiter’s responsibility to work with hiring managers to identify their ‘real’ need dates.” says Dr. Sullivan. That will not only improve your scorecard and improve your appeal to potential clients, but also make your current clients happier with their experience.
4. Revenue Loss Due to Vacant Days
The cost of slow hiring is very real and can be very high. “There is a direct and measurable dollar loss for every day that revenue jobs are vacant” says Dr. Sullivan. That’s why you want to track your clients’ revenue loss due to vacant days for jobs you’re filling and show that it’s lower than the industry standard.
To make sure your data is as accurate as possible and that hiring managers understand it and believe it, work with them on your assessment. “If possible, work with managers to estimate the dollar loss due to each vacancy day in these positions” says Dr. Sullivan.
5. Number of Hires from Target Firms
Especially in industries where talent poaching is favored, like tech, you want to identify how good you are at it. “If your firm identifies high-talent firms to recruit from, track the number or their percentage of new hires who came from ‘targeted’ competitors or high-talent firms” says Dr. Sullivan.
6. Retention Rate
Retention rate ties back to quality of hire“A quality hire can also be reflected in a high retention rate, so consider tracking the average turnover rate of a recruiter’s new hires within the first year and compare it to the average”. Showing that turnover rates are low for jobs you fill reinforces that you facilitate high quality hires.
Further, hiring candidates who stay saves companies a lot of money and thereby justifies your commission. “Remember the cost of losing an employee can be as high as 3-4 times their salary” says Paul Slezak, cofounder at RecruitLoop.
A high retention rate and low turnover rate is another way to set yourself apart from your competition as a recruiter who cares. “In recruiting we have often had a bad reputation for ‘dropping new hires over the wall’ and seemingly not caring about what happens to them” says Dr. Sullivan. “Appearing ‘not to care about your results is never a good thing. Measuring the performance and the retention of people that you hire helps to build recruiting’s credibility and it makes us appear more businesslike to executives.”
7. Percentage of New Hires Fired
If new hires you have provided are leaving a company, which isn’t good in and of itself, you at least want to be sure that it’s because they were lured away by a better opportunity and not because they were fired. “A new hire that must be terminated or asked to resign must be considered as a hiring failure, so the percentage should be tracked” says Dr. Sullivan. Ideally, you want to show hiring managers that your percentage of new hires fired is lower than that of your competition and lower than the industry average.