According to research, there will be a shortage of human talent in 2030, creating a loss of a staggering $8.5 trillion in unrealized annual revenues. Your business needs to learn talent acquisition early on so you can prepare yourself and not get stuck in this shortage.
Now, talent acquisition is not as straightforward as most employers would like it to be. About 75% of employers already believe there’s a skill gap amongst their applicants. Keep reading to find the top five talent acquisition metrics you must know.
1. Number of Active Job Postings
The number of active job postings is a key metric to track because it measures how efficiently your organization is recruiting. If the number of active job postings is high, it means that your company is not doing an excellent job at filling positions fast.
This could be due to a shortage of qualified candidates or a faulty recruiting process. Having a surplus of open jobs signals to candidates that the company is growing, and it provides more opportunities to find what they’re looking for.
2. Time to Fill
This is one of the top talent acquisition metrics. It measures the amount of time it takes an organization to fill a position, from when the job is posted until an offer is extended and accepted.
This metric is critical to track because it measures how efficiently your organization is recruiting. A high time to fill could mean that your company is not doing a good job at finding qualified candidates or that the hiring process needs to be improved.
3. Turnover Rate
Turnover rate is the percentage of employees that leave within a certain time frame. This metric is important because it’s crucial to keep an eye on how much the company is losing in terms of revenue and operational costs when workers quit.
On average, organizations should aim for turnover rates between 9-30%, but it’ll vary depending on industry type. For example, low turnover is typically expected in places like universities or government agencies, while high turnover may be common in sectors like retail.
4. Quality of Hire (QoH)
Quality of hire measures the overall quality of the new employees and how well they perform in their new jobs. To do this, a headhunter must measure top talent acquisition metrics like productivity, sales, customer satisfaction, and employee engagement.
It’s important to note that QoH isn’t only affected by the quality of new hires. It’s also affected by whether or not there is a good fit between candidates and their desired roles.
5. Cost Per Hire (CPH)
Finally, CPH measures the average cost of filling an open position. This is one of the best talent acquisition metrics and can be calculated by dividing the total costs of recruitment. This refers to advertising, sourcing, interviewing, selection, and onboarding by the number of hires made within a given time frame.
You need to understand your current CPH, so you don’t overspend during recruiting events. More so if you’re in search of hard-to-find skills.
The Most Important Talent Acquisition Metrics
Even though talent acquisition is extremely important, this department should not be overlooked. With the help of these five metrics, you’ll be able to ensure that your hiring process is running smoothly and efficiently.
These are the most vital HR talent acquisition metrics, and you need to understand them before the hiring process. Beyond that, kindly view our blog section for more valuable tips.
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