What are the best HR metrics and KPIs to track talent acquisition and retention?

Here i am Adding my Thoughts Measure the duration from job posting to candidate acceptance to assess recruitment efficiency and calculate expenses associated with hiring, including advertising, recruitment software, and personnel involved. determine the percentage of candidates who accept job offers, indicating the attractiveness of your organization—track diversity in hiring and retention efforts to ensure an inclusive workplace culture and prevent biases.

Time to hire measures how fast a job is filled. Low time is good, showing efficiency. High time suggests problems like lack of resources. HR software helps streamline recruitment and fix issues.

Track these HR metrics and KPIs to gain valuable insights into talent acquisition and retention, enabling better decision-making and the creation of a more effective and engaging workplace. - Talent Acquisition Metrics - Talent Retention Metrics - Combining Metrics for Deeper Insights - Using HR Metrics Effectively

Tracking key HR metrics is vital for talent acquisition and retention. Essential metrics include time to fill, cost per hire, quality of hire, candidate experience, and offer acceptance rate for acquisition. For retention, focus on turnover rate, retention rate, engagement and satisfaction

Measures the number of days it takes to fill a job vacancy from the time it is posted to the time an offer is accepted. A shorter time to hire indicates efficiency in the recruitment process.

CPH includes all expenses associated with the recruitment process, from sourcing candidates to onboarding.Total recruitment costs typically include expenses such as: - Job advertising and marketing - Recruitment agency fees - Employee referral bonuses - Recruiter salaries and overhead - Travel expenses for interviews - Background checks and pre-employment assessments - Onboarding and training costs

Cost per hire is the total money spent on hiring someone, divided by how many people are hired. It includes everything from advertising to training. A low cost means you're using your budget wisely, while a high cost suggests inefficiency. HR software helps track expenses and improve your hiring methods.

Cost per hire shows how much it costs to bring in a new employee. It includes everything from ads, interviews, and tests to training and onboarding. This metric helps you understand if your hiring process is efficient or wasteful. A low cost means you're using resources wisely, while a high cost may signal inefficiency. HR software can help track expenses and improve hiring methods. By using your employer brand and referrals smartly, you can bring down costs and get more out of your budget.

Calculates the total cost incurred to fill a job vacancy, including recruitment advertising, agency fees, and other related expenses. Lowering the cost per hire while maintaining quality ensures cost-effective talent acquisition.

The total cost of hiring divided by the number of hires. Provides insight into the financial efficiency of your recruitment efforts.

I have a strong belief in “What you measure is what you get”. More than two decades back, McKinsey identified that the raging fires would on the “War for Talent”. Seeking out right talent and cultural fitment isn’t a game of Russian Roulette, but one that requires planning and a very disciplined approach. One glove does not fit all. Get it right at the beginning of the pipeline and this will automatically rub some sheen off onto all other downstream metrics, including performance, sales turnover per employee and retention. Business is about numbers and the right talent will drive positive business outcomes. By slicing and dicing the data on quality of hire we can get more actionable insights into the hiring process.

In our company, quality of hire means how well a new employee performs and fits in. We look at things like performance ratings, meeting goals, feedback, and how long they stay. Our aim is to match the right people with the right jobs and keep them happy. We use HR software to track and improve this.

Evaluates the performance and contribution of new hires to the organization's goals and objectives. It may include metrics such as performance ratings, productivity, and retention rates.

Quality of hire measures the impact of new hires on your organization by evaluating their performance, productivity, engagement, and retention. It reflects how well your recruitment matches talent to roles and supports their growth. You can assess it through performance ratings, goal completion, feedback, turnover rates, and cultural fit. HR software helps track and analyze data from assessments and reviews, offering insights to refine your hiring strategies. By improving the quality of hire, you boost your company’s success and retain top talent.

Particularly for organisations that are mission driven, culture fit is a key component of the quality question. If the organisation has an active feedback culture which is driven by employees in addition to management, the volume and nature of feedback is a great way of assessing who fits well. A challenge though is that, given the reluctance among colleagues to provide developmental feedback, there is less information to work with for average or below average performers. In my experience, assessing culture fit is something that is relatively neglected as it requires a lot of though, expertise and discipline in ongoing application.

Measures the percentage of employees who leave the organization within a specific period. High turnover rates can indicate issues with employee satisfaction, engagement, or organizational culture.

There are other KPIs that can provide complementary insights into employee retention and engagement. One such KPI is Employee Retention Rate, which focuses specifically on the percentage of employees who remain with the organization over a given period, providing a more positive perspective on retention efforts. While Employee Turnover Rate remains an essential KPI, incorporating additional metrics such as Employee Retention Rate, Satisfaction and Engagement Scores, Promotion Rate, and Internal Mobility Rate can provide a more comprehensive understanding of workforce dynamics and help organizations address retention challenges effectively.

Employee turnover rate shows how many employees leave your company, either by choice or not, within a certain time. It tells you how well you keep your talent and if your workplace is attractive and stable. A low turnover means employees are loyal, engaged, and happy. A high rate might point to issues with your culture, management, or employee value. With HR software, track turnover patterns, conduct exit interviews, and use the insights to improve retention with strategies that address the real reasons for people leaving.

Employee engagement can be measured through surveys, pulse checks, feedback sessions, performance reviews, turnover rates, attendance, eNPS, peer feedback, participation in events, and recognition programs. These metrics provide insights into satisfaction, motivation, and alignment with organizational goals, enabling targeted improvements to enhance overall engagement and morale.

Employee engagement is about how connected and motivated employees feel at work. It affects their performance and decision to stay or leave. You can measure it through surveys, feedback, recognition, and participation. A positive work culture helps align employees' goals with the company’s vision. HR software can track engagement by gathering feedback, boosting communication, offering learning opportunities, and fostering a sense of purpose and belonging. Engaged employees are more productive, creative, and committed, making it crucial for long-term success.

I believe that tracking the right HR metrics is crucial for talent acquisition and retention. Key metrics like time-to-hire, offer acceptance rate, and employee turnover rate give a clear view of how well we're attracting and keeping top talent. I’ve seen firsthand how focusing on employee engagement scores and retention rates can drive real improvement. These KPIs help ensure we’re not just filling roles, but building a committed and satisfied workforce.

Easier to calculate (at least for the sales and marketing employees) would be a KPI called "Revenue per Employee" which assesses the revenue generated by each employee, indicating their contribution to the organization's financial performance and productivity.

Calculates the return on investment generated from the organization's investment in its workforce. It compares the value created by employees (e.g., revenue, productivity) to the cost of employing them.

In measuring the quality of hire, we have pre-hire and post-hire metrics. The pre-hire metrics has always been a challenge. During the recruitment process we can lose out by not hiring good candidates (False Negatives - we are not able to identify top talent) and hiring poor candidates (False Positives – mostly getting swayed by social judgement biases). However several errors in the process can be eliminated by having multiple levels of interviews, panel interviews, being aware of social judgement biases, assessment centres, performance tests, psychometric tests, etc. To sum up, getting it right at the beginning of the talent pipeline will lead to a smoother sailing downstream.

For talent acquisition: Regular monitoring of metrics such as Time to Fill & Hire, Cost & Quality of Hire, Offer Acceptance Rate, and Applicant Quality per source provides organizations with crucial insights into their recruitment processes. This data helps pinpoint areas for improvement and guides strategic adjustments to attract and hire top talent effectively. For effective talent retention: HR departments can enhance their understanding of the factors affecting employee retention, enabling the development of targeted strategies to retain valuable talent. These insights are vital for evaluating employee satisfaction, identifying issues, and crafting strategies to boost engagement and loyalty.

1. Recruitment Cycle Time: Measures time to fill positions, reflecting efficiency. Shorter times indicate streamlined hiring. 2. Hiring Expenses: Tracks costs to assess talent acquisition impact. Lowering expenses improves recruitment ROI. 3. Turnover Rate: Calculates departing employees percentage, highlighting retention challenges. High rates indicate necessary cultural or strategy improvements.

Numbers tell a story, but emotions drive decisions. Track the quantitative: Time-to-hire, cost-per-hire, retention rates. But don't stop there. Dive into the qualitative: Candidate experience scores, new hire satisfaction, exit interview insights. Measure cultural fit through peer reviews. Gauge productivity impact through manager assessments. Track career progression velocity for top performers. Remember, your best hires often come through referrals. Monitor your employee Net Promoter Score. It's a leading indicator of your talent brand strength. Balance the hard metrics with the human element. A low time-to-hire means nothing if you're losing top talent in six months.

Let's not forget about Offer Acceptance Rate which tracks the percentage of job offers extended to candidates that are accepted. A high offer acceptance rate indicates strong employer branding and effective recruitment processes.