Recruiting metrics can look as convoluted as the formula for finding the square root of pi if you don’t know what it is you are looking at. I myself am admittedly not a numbers gal. I’d prefer to write a 5000 word essay over a page of multiplication and algebraic equations any day! And this is fairly common for human resources professionals, as we don’t always identify ourselves as “numbers” people. However, in order to be efficient recruiting experts, understanding the numbers of it all is critical to adopting and utilizing an effective strategy for finding the best people to join your team! So, as with most things that make us uncomfortable in life, the ideal way to understand the metrics is to get comfortable with the numbers game.

Recruiting Metrics: What do the numbers really mean?

In 2012, SHRM (Society for Human Resources Management) released their first human resources metric standard survey. While not the most exhilarating piece of reading material, it does attempt to set the stage for how and why metrics in recruitment and HR in general matter.

The first issue is the cost per hire calculation (CPHC). This is discovered by looking at the external recruiting costs plus the internal recruiting costs, divided by the total number of hires during a given time period. This information will quantify the resources you are devoting to recruiting (either internally or externally) and the cost-effectiveness of this effort.

The second issue is what I would like to spend some time on here, because it seems to be the more critical piece of this particular puzzle. There are so many different numbers you could look at for HR: employee absenteeism rates, worker’s compensation costs per employee, HR staff to overall staff ratio, human capital cost (factoring in the cost of benefits), and many more. However, the one I’d like to take a look at is the turnover rate. We’ve written a lot about terminations and new hires, and this all factors into the company’s turnover rate which then affects the cost of recruitment and the budget for new hire and selection. By understanding your company’s numbers in terms of recruitment and turnover, you can better determine where you need to spend your selection/search funds, and how you can make the most of your money in this area. Understanding these numbers and knowing how to search, how to hire, how to screen, and how to onboard will likely decrease your turnover rate, which then helps with training costs, new employee onboarding processes, time spent setting up new hire emails, accounts, etc. So for all of my fellow non-numbers people, I’d suggest turning your attention to these particular numbers, because everyone knows the dollar speaks volumes when it comes to metrics in the workplace!