Hiring Efficiency 101

Understanding and optimizing hiring efficiency is essential for attracting top talent and maintaining a productive workforce. Here we’ll cover nine key metrics you need to track to ensure your hiring practices are both effective and efficient – from time-to-fill and cost-to-hire to candidate experience and quality of hire. You’ll also learn common signs that your hiring efficiency needs optimizing and actionable tips to address these challenges. Watch the video below or keep reading to start your journey to unparalleled hiring efficiency.

Tracking hiring efficiency: 9 metrics you need to know

1. Time-to-fill

The length of time from when you post the job to when the selected candidate has accepted your offer.

2. Time-to-hire

The length of time from when the job is posted to the selected candidate’s start date.

3. Application completion rate

The number of candidates who started the application versus the number of candidates who completed the application.

4. Open positions

The number of open positions you have at any given time.

5. Candidate/New Employee Experience

Use a Net Promoter Score (NPS) to measure your candidates’ and new hires’ experience to help determine your success.

6. Cost to hire

The total cost to hire the new employee from recruitment to when the position is filled.

7. Offer acceptance rate

How many offers were submitted versus candidates who accepted the position.

8. Quality of hire

Post-hire metrics showing employee success rate. This can include:

• Satisfaction
• Performance
• Engagement
• Influence on culture

9. Turnover rate

The employee count versus the total number of terminations within a given period.

Signs you need to optimize hiring efficiency and what to do about it

1. Decreasing offer acceptance rate

• Implement a structured hiring process with a stipulated quick time-to-hire. 
• Leverage tools like Pre-Hire Assessments to streamline screening. 
• Automate hiring tasks to free up recruiter time.

2. Multiple rounds of lengthy interviews

• Create a structured interview process that defines the number and length of interviews.
• Leverage assessments to gain insight into candidates’ skills. 
• Automated interview scheduling. 
• Implement asynchronous video interviews. 

3. High candidate dropout rate

• Eliminate unnecessary steps, touchpoints, and waiting time. 
• Craft detailed job descriptions to prevent confusion about what the job entails. 
• Improve communication to keep your candidates in the loop. 

4. Extended time-to-fill

• Promote your current employees.
• Use a referral system.
• Develop a talent pipeline.
• Invest in an Applicant Tracking System (ATS).

5. High employee turnover rate

• Leverage skills assessments to gauge hard and soft skills.
• Implement flexible work arrangements.
• Encourage work-life balance.
• Set up employee recognition programs.
• Ensure competitive pay.
• Provide career development opportunities.

Mastering hiring efficiency is critical to any organization looking to hire the best talent while minimizing costs and time. By closely monitoring metrics like time-to-fill, application completion rates, and turnover rates, you can gain valuable insights into the strengths and weaknesses of your hiring process. Then by implementing the recommended strategies for optimization, like promoting a structured interview process and creating detailed job descriptions, you will significantly improve your hiring outcomes. 

A streamlined hiring process not only enhances candidate experience. It boosts overall employee satisfaction and retention. Start implementing these best practices today and watch your recruitment efforts transform.

Find out how Cangrade can drive your hiring efficiency today. Request a demo.