One of the most important things you can do to prove the strategic value of recruitment marketing in your organization is to understand, measure, and report on the right metrics. Remember, data and analytics are only as good as their ability to guide your decision making for smarter recruiting and for continuous improvement across your recruitment function. So what are the best ways you can measure recruitment marketing ROI?
Here are the top 10 analytics you should get comfortable with to demonstrate the effectiveness of recruitment marketing strategy in your company:
#1 Cost per Visit (CPV): Cost per visit is a broad measure of how much it costs to drive candidates (visitors) to your career site. Because most every recruitment marketing activity ultimately drives candidates to your career site, this is an important metric. Simply divide your recruiting budget by the number of visitors to your site each year to arrive at the number.
#2 Cost per Candidate (CPC): In the age of candidate relationship management, cost per candidate is a new measure to understand how much it costs you to acquire each candidate through all means available. CPC takes your candidate acquisition budget and divides it by the number of candidates (applicants and non applicants) you’ve acquired.
#3 Cost per Applicant (CPA): Cost per applicant divides the number of applicants you get in a given period by the corresponding recruiting budget. This is a good measure of how efficiently you are attracting available candidates and converting them into applicants. Talemetry customers, like Gwinnett Medical Center, have seen drastic decreases in their cost per applicant volume. Specifically, Gwinnett saw an increase of 15,000 applicants within the first quarter of using the Talemetry solution.
#4 Cost Per Hire (CPH): Cost per hire is calculated by dividing the number of hires for a given period by your corresponding recruiting budget. This is a keystone metric that measures the efficiency of all your recruiting efforts, from candidate acquisition to recruitment operations.
#5 Cost per Quality Hire (CPQ): If you are tracking quality of hire, you will have a threshold for what you deem a quality hire. The simplest example is subtracting year one turnover from the overall number of hires. This is a basic quality hire threshold. You can and should get more sophisticated in how you determine a quality hire. Manager satisfaction and time to productivity thresholds can also help determine a quality hire. No matter how you measure it, CPQ is calculated by dividing your recruiting budget by the total number of hires minus the number of hires below the quality hire threshold.
#6 Time to Fill: Time to fill is a measure of recruiting efficiency. While it should not be an end all metric, it is helpful to know how long you can expect each hire to take. Time to fill is the time it takes between requisition opened and offer letter signed. Not to be confused with time to hire, which is the time between when a candidate engaged and when they sign the offer letter.
#7 New Hire Retention Rate: A key measure that makes up overall quality of hire, new hire retention rate consists of all hires minus turnover within a given period, typically the first year. Simply divide your retained hires by total hires to calculate the percentage.
#8 Revenue per Employee: This is a core metric for many recruitment marketing ROI calculations. Every CFO knows this number. It is the total annual revenue divided by the number of employees. This measure is crucial for calculating lost or accelerated productivity when analyzing time to fill.
#9 Visitor to Applicant Rate: This is the broadest metric for how effective your career site is at converting visitors to engaged applicants. It is calculated by dividing the number of applicants in a given period by the total visitors to your site.
#10 Application Completion Rate: Closely related to visitor to applicant rate, this is a very focused metric that zeroes in on how effective your applications are at converting interested candidates into engaged applicants. It is calculated by dividing the number of completed applications by the number of started applications. Standard industry application conversion rates are 20 to 30%, but typical Talemetry customer conversion rates are just the opposite—ranging between 70 and 80% completion.
What Are You Doing to Measure Effectiveness?
Our top 10 list gives you a foundation for measuring the effectiveness of your recruitment marketing strategy. When you have a solid understanding of these metrics, you can build a more robust toolbox for analyzing and demonstrating your recruitment marketing ROI.
If you’d like to learn more, then we invite you to join us for an upcoming webinar on Wednesday, April 18 at 11:00 a.m. PT/2:00 p.m. ET, featuring Jade Bourelle, Co-Founder and CEO of Talemetry, in a panel-style presentation along with experts from BambooHR and Indeed. Listen to the panel explore strategies for measuring and presenting the state of your recruiting program and learn practical next steps for improving your recruitment function.
- Measuring Recruitment Marketing ROI
- Measuring Quality of Hire for Recruitment Marketing ROI
- Measuring Cost per Hire for Recruitment Marketing ROI
- Measuring Time to Fill for Recruitment Marketing ROI