HR Metrics that Matter: Talent Acquisition

March 2nd, 2017 by

Unlike many other functions, human resources has not been able to develop and/or sustain universally accepted performance metrics.  As a result, HR metrics often vary widely from company to company and industry to industry. Additionally, the metrics that are most commonly used are not always the best indicators of HR performance or impact.  In fact, HR leaders often make the mistake of using metrics that relate specifically to how well HR is performing administrative tasks.

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The following measures are geared toward measuring HR’s actual impact on the business.

1. Quality of Hire

This metric can be calculated from a combination of a number of factors, including: performance review ratings, actual job results, 9-box ratings, and 6-month Quality of Hire Evaluation Form to obtain the hiring manager’s perspective. You could also review hires that turned over, hires on the promotable list, and hires on the performance improvement list to help determine quality of hire.

2. Time to Fill Key Roles

Not all job openings are equal. In fact, some mission-critical positions carry a lot more weight than a ‘rank-and-file’ opening. Recruiters and HR business partners should prioritize their job openings so that the key roles get the greatest attention. It doesn’t really matter if your overall time-to-fill metric is only 30 days, if it is taking 3 times that long as that to fill key roles.

3. Onboarding Effectiveness

There are basically two simple ways to determine if your onboarding process is effective. The first way is to conduct a post-onboarding survey with new hires on or about 90 days after being brought onboard.

The second way to ensure that the first 90 days are properly scripted into a series of events aimed at supporting the new hire, and ensuring they have been given exposure to the right people.

By asking for completed and signed-off copies of the checklist, with signatures of both the new hire and manager, you improve the likelihood that the onboarding process will be taken seriously.

4. New Hire Dropout Rate

One way to tell how effective the organization is in terms of selecting, hiring, onboarding, and training new hires is to review turnover data. If the turnover rates for new hires (say the first 180 days) or newly hired (first year) are significantly higher that the remaining employee population, you likely have real issues.

Start by asking these questions:

  1. Are we presenting a realistic job preview during the interview process?
  2. Do we have properly trained interviewers asking the right questions?
  3. Are we doing a good job of checking references?
  4. Do we have our act together in terms of a scripted onboarding progression?
  5. Are the hiring managers effectively setting clear expectations?
  6. Have we met the commitments we agreed to during the ‘courting’ stage?
  7. Are we selecting based upon cultural fit?
  8. Do we involve coworkers in the interviewing process?

CAI members have access to all forms, tools, and templates for talent acquisition / recruiting / onboarding online at myCAI. Not a member? CAI can help you build an engaged, well-managed and low-risk workplace, give us a call at 919-878-9222 or visit www.capital.org/membership to learn more.

Tom Sheehan brings 20+ years of extensive, broad-based strategic, tactical and practical HR experience to CAI’s Advice & Resolution team.  He advises HR and other business leaders on talent management, organizational effectiveness, employee engagement, M&A’s, and employee relations.

 

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