Tag: Recruitment Metrics

Whats Missing in Your Cost Per Hire Metric?

One of the most common metrics used in recruitment is cost per hire. Generally used to bring together all the costs associated with filling an open position, cost per hire is probably the most widely used metrics across all types of recruitment. It is a close to a universal metric as we have. However, most of us are not using it correctly.

First make sure your calculation includes all factors related to filling the positon that have an external cost like marketing, advertising, job fairs, job board fees, travel time to events, remote interviewing, etc. Any and everything you can think of that happens outside the office that adds to your total cost.

Now do the same for factors that are internal to the business. Salaries, bonuses, reimbursement expenses, application tracking systems, copy and printing costs, etc. Make a list and notate the expense for any and everything you can think of that happens inside the office.

In both cases, also include data for shared costs from expenses that cover more then one opening. In many cases we don’t include things like rental expenses, association fees, government requirements, really anything that your organization spends money on that directly supports your recruitment efforts. In many cases, you can divide the total amount by open positions to come up with some kind of weighted amount assigned to each open req.

Now one more piece to your cost per hire metric, that most of us miss. Expenses related to not filling the position. How much is lost in productivity? What revenue forecasts come up short? How much is spent on overtime and other compensation for staff covering for the open position? When you factor these items in you can get a much deeper understanding of the cost per hire to the business.

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If you are doing all of these things and feel you have a very solid cost per hire metric, then you are in the minority. In an ideal world, recruitment teams can better allocate resources based on what positions cost the most to fill. Better understanding all the data points that are added into the cost per hire calculation can also uncover opportunities for savings that you might not otherwise see.

On the other hand, if you are looking for some guidance on assessing your cost per hire metric to make sure its optimized to capture all of the relevant data points to your business then connect with me. I can help you get a true read on the cost per hire in your business.

HR & Recruitment Analytics – The recruitment and retention of top talent is the biggest challenge facing just about every organization. DMAIPH is a leading expert in empowering HR & Recruitment teams with analytics techniques to optimize their talent acquisition and management processes. Contact DMAIPH now at analytics@dmaiph.com or connect with me directly to learn how to get more analytics in your HR & Recruitment process so you can rise to the top in the ever quickening demand for top talent.

HR Analytics – Curiosity Trumps Technique

I came across an advertisement for an upcoming HR Analytics training a few days ago.

It’s a three-day class that goes pretty heavy into the technical side of HR Analytics. Like most analytics training classes being offered in the market right now there is a lot of emphasis how to gather data and report it. I am starting to see a little more emphasis in data visualization and building more dynamic reports, which is encouraging.

However, no matter what analytics tool you have, and how well your HR analysts are in using the technology, if your HR analysts aren’t empowered to really ask questions and unleash their curiosity on the people data they have access to, then you really won’t see a significant success when it comes to using data.

In addition, if your business is not ready to have an ongoing discussion about how to use the data to improve decision-making at all levels of the organization then you are not going to be successful either. You need an analytics centric culture to really benefit from all the amazing tools and techniques now available to HR teams.

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When you look over the agenda of an HR Analytics training class and you don’t see anything about culture, empowerment, data-driven decision-making, or dynamic reporting using interactive tools… then it is highly unlikely you will benefit much from sending anyone to these types of trainings.

If you would prefer to send your team to a training where your HR analysts and managers will not just learn a few techniques and demo a few tools, but really get into what it means to be an HR analyst and how HR can be at the forefront of building an analytics centric culture, then I would be happy to include them in my next HR analytics training class.

HR & Recruitment Analytics – The recruitment and retention of top talent is the biggest challenge facing just about every organization. DMAIPH is a leading expert in empowering HR & Recruitment teams with analytics techniques to optimize their talent acquisition and management processes. Contact DMAIPH now at analytics@dmaiph.com or connect with me directly to learn how to get more analytics in your HR & Recruitment process so you can rise to the top in the ever quickening demand for top talent.

HR Recruitment Analytic Techniques

Every recruiting organization is looking for a way to better understand what’s working and what’s not working in their recruiting strategy. By using meaningful HR Recruitment Analytics techniques, your recruitment efforts can be greatly enhanced.

With real-time recruitment metrics & reporting, we can finally know what’s happening in our pipelines and what channels provide us with most qualified candidates.

New technologies like social networks, applicant tracking systems and business intelligence applications are fundamentally changing the entire recruitment process from sourcing to placement.

The pressure to deliver results has never been greater. HR and Recruitment managers are now more than ever required to demonstrate the return on investment their efforts are contributing to the bottom line.

Building analytics centric teams and using techniques taught in this training session will empower more data-driven decision making. This will result in both process efficiency and better return in investment in the recruitment process.

A few months ago, I facilitated a training class on HR Recruitment Analytic Techniques.

The Learning Session Objectives from the training were:

1. To learn analytics techniques that will allow quicker, deeper and more impactful analysis of HR Recruitment Big Data.
2. To be exposed to cutting edge technology being used in other companies to build HR Recruitment business dashboards and design more powerful reports.
3. To assess the current state of analytics in your HR Recruitment process and build a strategy to empower the greater use of analytics in your organization.

The Key Benefits from Attending this Learning Session were:

1.Develop analytic techniques that you can use to improve decision-making and improve the bottom line.
2. Explore analytics tools like business dashboards and data visualization to improve reporting.
3. Build a strategy to move your organization from current state to ideal state when it comes to the use of analytics.

Topics covered in the training included:

  • What is Recruitment Analytics?
  • Self-Assessment of your Recruitment Analytics
  • Analytic Techniques for Finding the Right Data at the Right Time
  • Applicant Tracking Systems & Social Media
  • Big Data and Recruiting Analytic Strategies
  • Business Intelligence, Data Visualization & Business Dashboards Technologies
  • Building Meaningful HR Recruitment Techniques

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Overall it was a great training class with lots of great discussion. Given that the recruitment and retention of top talent is the biggest challenge facing just about every organization. more conversations are needed.

DMAIPH is a leading expert in empowering HR & Recruitment teams with analytics techniques to optimize their talent acquisition and management processes. Contact DMAIPH now at analytics@dmaiph.com or connect with me directly to learn how to get more analytics in your HR & Recruitment process so you can rise to the top in the ever quickening demand for top talent.

 

Follow Up to Q17: HR Analytics Trends

As a follow up to my last blog, I wanted to share a few more points about HR and Recruitment analytics then time allowed for. So here’s what I left out.

First we are seeing a massive replacement of licensed, traditional HRMS systems taking place. Many large companies either have, our or are looking into replacing the core HR applications. Most where built internally, just store structured data, are difficult to pull data from unless you can write code and are not integrated with other data structures.

The replacements are often vendor managed, cloud based, data storage solutions with end user interfaces that simply finding and analyzing data and often automate much of the reporting. And they can be updated in hours versus minutes, versus the old platforms that could take weeks if not months to update.

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These new platforms are able to provide almost limitless data points, have built in business dashboards and are starting to offer powerful predictive analytics models. The days of many of the old school CRMs and ATSs we are using to manage people data are truly numbered.

Another trend worth mentioning is the efforts cutting edge teams are putting into both candidate and employee engagement. Attempts to “gamify” various part of the employee lifecycle to make data gathering, analysis and sharing more eventful is increasingly common. Its common knowledge that ways to attract and keep the attention of millennials is significantly different then it is for baby boomers or Gen Xers.

Dr. Sullivan mentioned that “we are seeing the traditional annual engagement survey is going the way of the dinosaur (slowly however) and a new breed of pulse tools, feedback apps, and anonymous social networking tools has arrived.” It has never been more important to look at not just the enterprise wide health of a company, but that of small communities within the enterprise.

Metrics that measure how engaged an employee once a year is are no longer enough. We can use things like sentiment analysis, text analytics and social media data scrapping to uncover things we would never see in a survey where everyone is pressured to give top scores.

And we really have to get beyond historical data and descriptive analytics to look at current and predictive metrics. We need to quickly know when and why metrics are headed in the wrong direction and measure the impact of our solutions. And this goes for not just current employees, but future ones as well. Candidate satisfaction with the hiring process is often an over looked metric.

We also now have the data and the tools to run predictive models on how, when and why someone may be looking to leave the company. This creates another whole area of HR analytics to look at.

Dr. Sullivan added that “we are seeing tools to predict flight risk, assess high potential job candidates, even find toxic employee behavior – are all in the market today.  While many are not highly proven yet, they all work to a degree, providing great value to any company.”

Now we have, three more trends to consider when it comes to analytics in HR & Recruitment:

  1. Replacement of old internal HR systems with new vendor managed tools
  2. The evolution of employee engagement tools
  3. Predictive analytics modeling

If you are curious about how to get more than just the most basic descriptive analytics out of your business data, then let us sit down and talk about. Finding solutions to replace your old HR systems with more employee engagement options and predictive analytics is not as hard or as expensive as it was a few years ago. Let me show you how getting back on the cutting edge  with your data can be done.

HR & Recruitment Analytics – The recruitment and retention of top talent is the biggest challenge facing just about every organization. DMAIPH is a leading expert in empowering HR & Recruitment teams with analytics techniques to optimize their talent acquisition and management processes. Contact DMAIPH now at analytics@dmaiph.com or connect with me directly to learn how to get more analytics in your HR & Recruitment process so you can rise to the top in the ever quickening demand for top talent.

Q17: What are some best practices and technologies used in HR & Recruitment Analytics?

HR and Recruiting Professionals have embraced analytics. It took a while, but the increased need for data and analytics tools –The ability to collect, process and analyze “big data” has become paramount to the people side of the business. In order to gain a competitive edge in the increasingly chaotic global workplace, those who use analytics to gain data-driven insights into recruitment, compensation and other performance centric trends are the ones on the cutting edge.

“In my opinion, 95% of all the work that is done on recruiting metrics ends up being a waste of time, because the work focuses on creating historical tactical metrics never actually used to improve recruiting performance,” says Dr. John Sullivan, an ERE blogger and recruiting metrics expert. He says there are 3 reasons why there are failures and wasted time when it comes to metrics:

  1. Recruiting metrics omit any “big-picture” business impacts
  2. Current recruiting metrics are 100% descriptive and only offer guesses on what is and what will happen.
  3. Once collected, the metrics are reported to “barley interested eyes” who then assign things to a committee whose time spent results in very little measurable impact.

If you are still focused on time to fill and cost per hire, you really are quickly becoming a dinosaur. In addition, the idea of trying bringing in new people while working towards retaining top talent are generally not assigned to the same people. The disconnect between recruiting good people and retaining the good people who have been recruited is a killer to many companies. Both the material and cultural cost of replacing a bad hire isn’t generally looked at.

There are lots of blind spots to what is happening not just internally, but also externally.  Knowing who you are competing against for the same talent and what makes your offer to sign or stay stand out from the crows. None of these points can be analyzed with old school metrics terms and methods.

Dr. Sullivan also recommends six strategic categories of metrics that will help your in not just recruitment but in many other HR initiatives like retention and employee engagement:

  • The positive performance increase added by more productive hires
  • The failure rate of new hires and the damage done by weak hires
  • The losses created by a weak hiring process
  • The opportunity costs of “missed” landable top talent
  • The cost of using excessive hiring manager hours

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If you are looking at metrics like these, and sharing your findings not just with the recruitment team, but the boarder HR team, you can come up with big picture strategies to deal challenges much more effectively. In my own experience, a few other noteworthy trends in HR and Recruitment Analytics to consider include:

  • Disruptive Technology. Giving tools and information to managers and employees directly allows action to happen much quicker and be much more localized in impact. Success means giving the power to the end users so that HR can do more to oversee and manage big picture metrics.
  • Once A Year Is Not Enough. Annual reviews and employee surveys are too old school. Using analytics to gain insights can now be done 24/7. This can really have positive changes on employee engagement without the drawn out and too formal process made uniform to all.
  • Outsource Stuff. In successful companies, many tasks are outsourced to vendors who can do a lot more specialized things then in house generalist staff can do. Its just to much to ask a few people to stay on top of all the things important to the people you rely on. You have to pick and choose what you can keep and what you can outsource.
  • Mobile Apps. Designing apps for mobile first use is the way to go. We too often rely on old school thinking and take web-only or web-first tools and repurpose them for mobile. Times have changed. Mobile first is the way to connect with todays candidates and employees.
  • Look For It On YouTube. Video based learning, recorded by localized subject matter experts is on the cutting edge. The bonuses of learning from someone who is doing it versus traditional corporate trainers and enterprise world eLearning modules is another key to success.
  • Out Of The Box Analytics Tools. Behind the fire wall HR applications are being replaced or augmented by vendor based analytics tools that are more dynamic and expandable. Many can set on top of or replace current tools that are being used to gather, store, analyze and report data. The days when everything has to be designed, developed and maintained by an internal IT team is also going the way of the dodo bird.

So there you have it… becoming an HR and Recruitment Analytics ninja is going to take a lot of new thinking and a lot of letting go of how it worked in the past. Everyone agrees recruiting has never been harder, retention is getting more challenging and the future of finding and retaining talent is looking like a nightmare on the horizon.

If you need some guidance with how to being your HR and/or Recruitment team into the information age, I’m happy to help. One of my favorite things to do is get in a room with HR and Recruitment staff and talk about how to bring the team form the past to the future when it comes to analytics.  Just ask me how.

HR & Recruitment Analytics – The recruitment and retention of top talent is the biggest challenge facing just about every organization. DMAIPH is a leading expert in empowering HR & Recruitment teams with analytics techniques to optimize their talent acquisition and management processes. Contact DMAIPH now at analytics@dmaiph.com or connect with me directly to learn how to get more analytics in your HR & Recruitment process so you can rise to the top in the ever quickening demand for top talent.

The Challenge Ahead

How do we get better? That’s what is on my mind every day. Most people get up every day and go to work. They have family obligations to meet so they take a job that helps them meet these obligations. However, most people don’t find job that add much more value to their lives then a pay check.

Sometimes we get lucky and find a good place to work. Where we are valued as not just a worker, but a person. Where we are allowed to have more work/life balance then we might have in other places of employment. This is a special place to be. Its not what 90% of the global workforce face every day.

  • So what happens when we find that awesome company to be a part of? In some cases we are empowered to be innovative and to help be part of the success of the company as keep it moving forward. For people who feel this sense of positive energy, work is actually pretty fun most days.
  • However, in some cases we find that even though the company is good to us and we like working there, we find things start to feel routine. We have challenges every day that are either not fun to fix or when we fix it, no one seems to notice. This eats away at our positive feelings about our company.
  • And then we have a third group of people who for whatever reason are in the wrong place at the wrong time. They have challenges in their lives that prevent them from being at work every day. And often when they are at work they don’t feel very engaged. They have a low sense of satisfaction that makes each day on the job more work than its seems worth.

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So as DMAIPH grows from a company of a half dozen to one of several dozen, how do we keep people trained? How do we make sure we keep as many team members as possible in the first category of engaged and empowered workers?

These is no simple answer. For some more money, for others more responsibility and for others more job variety.  There is no magic solution. It takes a lot of effort from not just the leaders but also from the employees who want to keep enjoying their work and like to work every day for the same company.

The answer of course is analytics. We need to know exactly what they need to stay engaged and to stay with us.

That is what I think about every day. That is THE big challenge ahead. And so should you.

Join us on Feb 21, 2017 in Ortigas to find out what metrics you need to interpret and access the data you have in your business that will tell you exactly what to do to keep attrition low and satisfaction high.

Analytics Leadership – DMAIPH specializes in arming the Data-Driven Leader with the tools and techniques they need to build and empower an analytics centric organization. Analytics leadership requires a mastery of not just analytics skill, but also of nurturing an analytics culture. We have guided thousands of Filipino professionals to become better analytics leaders. Contact DMAIPH now at analytics@dmaiph.com or connect with me directly to discuss a uniquely tailored strategy to ensure you are the top of your game when it comes to Analytics Leadership.

The Most Over Looked Metric In Recruiting

Which recruiting metric is most important to you?

This is something I am asked all the time and I generally go back to something I came across awhile ago. I have yet to find a better one…

“I am convinced that the most important metric and the only one I care to follow is; how long did the person I place stay with my client company? Are they still there, or did they leave? Were they promoted? Or were they Fired?”

Source: http://www.recruitingblogs.com/

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So, the metric we should be interested in improving is that of the success and tenure of our placements. How long do they stay? How well liked are they? How well do they fit in with the rest of the team? Do they get promoted? This is the true test of “Added Value” which is why companies hire recruiters.

I have hired over 150 people over the past few years and many of the best ones are still going strong, so we must be doing something right. 🙂

If you need help in your recruiting process, DMAIPH can help! My expertise with recruitment analytics makes me uniquely qualified to help you measure your most important requirement metrics.

HR & Recruitment Analytics – The recruitment and retention of top talent is the biggest challenge facing just about every organization. DMAIPH is a leading expert in empowering HR & Recruitment teams with analytics techniques to optimize their talent acquisition and management processes. Contact DMAIPH now at analytics@dmaiph.com or connect with me directly to learn how to get more analytics in your HR & Recruitment process so you can rise to the top in the ever quickening demand for top talent.

What Exactly Are Recruitment Metrics?

A general definition of recruitment metrics is something like this, “standards of measurement that HR and Recruitment professionals use to identify, analyze and present important information regarding the hiring process.” Recruitment metrics are extremely important in both assessing the effectiveness of the recruitment process and in looking at the ROI (return on investment).

Traditionally recruitment metrics focus on two areas; cost per hire and time to hire. They are both looking primarily at only the impact to hire someone.

However, those metrics generally do not include a multitude of important data points that decision-makers need to know. For example things like candidate satisfaction and hiring manager satisfaction can help determine wholes in a process.

You can also use recruitment metrics to optimize the hiring process looking at things like distance to work, difficult of commute, and demographic data on what schools and courses provide the best employees.

Another are you can draw psychometric data from for your metrics would be on things like work ethic, career decision-making and employee loyalty to see who is successful in your company so you can find more like them.

The types of metrics you can use in your recruitment process are practically limitless.

Based on a recent survey I saw on LinkedIn, If we use metrics correctly, they achieve the following additional benefits:

  • Advance the relationship between recruitment and the hiring managers — align the RIGHT objectives
  • Provide credibility to the recruitment department by displaying that they understand the overall business goals and objectives
  • Define what is important and expected of each recruiter
  • Drive consistency in delivery of recruitment services to the organization
  • Provide a platform to measure recruiter accountability and performance.

Does your recruitment process have actionable metrics that can drive data-driven decision-making?

If you are having trouble with your recruitment metric, connect with me and I’ll help you make sure you are measuring the recruitment metrics that are key to your business.

HR & Recruitment Analytics – The recruitment and retention of top talent is the biggest challenge facing just about every organization. DMAIPH is a leading expert in empowering HR & Recruitment teams with analytics techniques to optimize their talent acquisition and management processes. Contact DMAIPH now at analytics@dmaiph.com or connect with me directly to learn how to get more analytics in your HR & Recruitment process so you can rise to the top in the ever quickening demand for top talent.