Recruitment KPIs, or Key Performance Indicators, have become essential tools for HR professionals and recruitment managers.
Indeed, in an increasingly competitive and constantly evolving job market, it is crucial for companies to measure and analyze the performance of their recruitment processes in order to optimize them.
Recruitment KPIs are the indicators that enable them to do this effectively. In this article, companies are presented with 10 must-track recruitment KPIs to gain valuable insight into the overall health of their recruitment strategy.
1 – Number of applications received
The number of applications received is one of the very first key recruitment indicators. It is directly linked to a key stage in the process, which is recruitment sourcing. It is used to measure the number of applications received in response to a job offer or opportunity within the company.
This is an essential recruitment KPI for assessing the visibility of a company’s vacancies, the relevance of its recruitment strategy and its overall appeal as an employer. An insufficient number of applications may, for example, indicate shortcomings in the dissemination of the job offer.
It is therefore essential to monitor this recruitment KPI, especially in a context of recruitment 2.0context, to adjust recruitment efforts and optimize distribution channels if necessary.
2 – Rate of applicants interviewed
Once the number of applications is known, it is relevant to assess the proportion, compared to this number, of candidates who pass the first pre-selection stage and are invited to a formal interview.
This rate is a recruitment KPI that offers significant insight into the effectiveness of the application screening process and the alignment between candidates’ skills and the criteria required for the position.
A high rate of applicants interviewed may indicate an overly permissive initial selection process, while a low rate may suggest that qualified candidates may be eliminated too quickly.
3 – The rate at which candidates progress through the recruitment process
Pre-selecting candidates is only the first step in the recruitment process. There are, of course, several others, and it’s just as important to evaluate candidates’ progress through these stages.
Candidate progression rate is the recruitment KPI that measures the proportion of candidates who progress from one stage of the recruitment process to the next, from the initial application to the final hire, via the recruitment test.
This recruitment KPI is essential for identifying any sticking points or friction in the process. Monitoring it would therefore enable us to recognize areas for improvement, optimize selection criteria and ensure that the recruitment process runs efficiently.
4 – Candidate satisfaction rate
The candidate satisfaction rate measures how satisfied candidates are throughout their recruitment experience, from the moment they submit their application to the end of the process, whether they are hired or not.
This is one of the HR performance indicators performance indicators in the recruitment process, because of its impact on the company’s image.
A high satisfaction rate indicates that the company offers a positive experience to candidates, which can enhance its reputation as an employer and help attract talent. On the other hand, a low satisfaction rate can have the opposite effect, damaging the company’s employer brand image.
5 – Candidate quality
Candidate quality is a critical indicator in any recruitment process. It focuses on the match between candidates’ skills, experience and personal traits and the requirements of the position to be filled.
Accurate assessment of candidate quality is essential to ensure successful hires. High-quality candidates mean that the individuals who pass through the recruitment process have the potential to contribute positively to the company in the long term.
To measure the quality of candidates, it is important to to conduct recruitment tests and use relevant selection criteria during these tests.
6 – Diversity of candidates
Candidate diversity is a recruitment KPI that measures the inclusion of different demographic groups based on criteria such as age, gender, ethnic origin, religion and sexual orientation, among applicants for a given position.
Indeed, a diverse workforce brings a range of experiences, perspectives and skills that can stimulate innovation, enhance creativity and foster a more inclusive corporate culture.
A high level of recruitment diversity of applicants indicates that the company is attracting a diverse range of talent, which can enhance its reputation as an equal opportunities employer.
It can also contribute to fairer hiring decisions and better representation within the company.
7 – Length of the recruitment process
The duration of the recruitment process refers to the time needed to go from opening a recruitment for a position to finalizing the hiring of a qualified candidate.
This recruitment KPI offers a significant insight into candidate experience, operational efficiency and the company’s responsiveness to its staffing needs.
A recruitment process that takes too long can result in the loss of talented candidates, who may accept other job offers before a decision is made. It can also increase recruitment costs and disrupt operations, leaving positions vacant for long periods.
On the other hand, a recruitment process that is too fast or too short can lead to hasty decisions that fail to take into account the quality of the candidate. Striking the right balance is therefore crucial.
8 – Cost per candidate recruited
Cost per candidate recruited is a recruitment KPI used to assess the efficiency of the recruitment process in terms of expenditure. It enables the recruiter to know the total amount spent to attract, evaluate and hire a candidate.
This recruitment KPI is essential for effectively managing the recruitment budget. A high cost may indicate inefficiencies in the recruitment process or inefficient use of resources.
On the other hand, a very low cost should not be preferred to the detriment of candidate quality.
9 – Total cost of recruitment
The total cost of recruitment is the KPI that enables the company to assess the overall profitability of the recruitment process.
It covers all expenses associated with the acquisition of new talent, from the search and vacancy announcement phase to the final integration of recruited candidates.
This recruitment KPI includes :
- Job advertising costs ;
- Recruitment team salaries;
- Costs related to recruitment management software ;
- Potential training costs for new employees, etc.
Monitoring the total cost of recruitment is relevant, as it helps to maintain budget efficiency and identify areas where savings can be made.
10 – Retention rate of newly recruited employees
The retention rate of newly-hired employees is the recruitment KPI that assesses the company’s ability to maintain and retain recruited talent.
It calculates the proportion of newly-hired employees who remain with the company for a given period after being hired, usually measured in months or years.
A high retention rate indicates a good match between the candidate’s expectations and the company’s reality, effective integration and a positive working environment.
On the other hand, when this recruitment KPI shows a low rate, it may indicate problems in the recruitment, integration or talent management process, as well as challenges in terms of corporate culture.
