5 Valuable KPIs That Influence Your Talent Acquisition Strategy

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If you’re an HR professional, then you probably know all the talent acquisition KPIs by heart. Reciting them is even easier. You’ve got time-to-hire, cost-per-hire, time-to-fill….

But for those of you that aren’t exactly sure what these KPIs are, let’s go over the basics together.
Talent acquisition KPIs are specific metrics that are an essential part of data-driven recruitment or hiring.

They also allow recruiting teams to measure the overall efficiency of their function. So essentially, KPIs allow managers to assess their team’s strengths, as well as the recruitment efficiency of individual recruiters.

But hold on, what are the top KPIs that positively influence and improve your talent acquisition strategy?

What a great question!

Let’s slice that pie into smaller bits and dig deep into the good stuff!

Cost per quality applicant

talent acquisition specialist

If money wasn’t an issue in an alternate universe, companies would be able to hire the best talent without spending a dime, no matter where they are in the world. Unfortunately, that’s not how it works in the real world.

Today, companies from all across the world have real budgets and a heavy concern regarding their talent acquisition costs. From the soaring expenses of agency fees, sourcing costs, travel costs, recruiter compensation, hiring platform costs – just to name a few.

But the truth of the matter is, cost per quality applicant is one of the most crucial KPIs that can monumentally influence your talent acquisition strategy.

So what makes this metric so important? Cost per quality applicant (CQPA) allows you to understand how much you’ve spent on a job (or campaign) to yield an applicant that you believe is “qualified” for the role.
Now, only you can measure what makes the candidate “qualified”. Maybe it’s those candidates that nail the phone screen, have a certain amount of experience, or those that score high in a certain assessment. Once you pin down what makes a certain candidate qualified, it’s then time to crunch in the math.
Assume that you spent $900 on LinkedIn to promote a Sales Manager position. Let’s also say that you got 100 candidates, of which only 10 are qualified. If that’s the case, you’ll need to divide $900 by 10 to get the cost per quality candidate which is $90.

To put it into perspective, always try to determine the average CPQA for some roles. For instance, if the average CPQA for a Sales Manager is $90 and last quarter the average was around $150, you can take that as an indicator that the way you’re portraying your message is not exactly luring in the best candidates for that role.

Bear in mind that the CPQA tends to vary based on the channel. So while your favorite job boards might pour in the largest number of candidates, it might also yield in the most expensive CPQA! This metric can help you get a birds-eye view of your talent acquisition and help you see at a glance which channels are working best for you and which ones are not. After all, The goal of this KPI is to tell you whether your in-house HR department is doing well or not.

Sourcing channel efficiency

recruiter analyzing the talent acquisition strategy

Cost per quality applicant is only one piece of the pie. Now it’s time to slice into the other piece; sourcing channel efficiency. So you got some awesome candidates dripping into your pipeline, do you ever wonder where they’re coming from?

The sourcing channel efficiency KPI is a metric that tells you that information. So for example, you can easily determine if a candidate came from an online job board, social media platform, your career page, or other sources.

If you’re looking to enhance your talent acquisition strategy, start by optimizing your sourcing channels. On the bright side, a hiring platform like EVA-REC can help you post jobs on 2,000+ job boards and track where your candidates are coming from, at any time.

For example, the award-winning hiring platform EVA-REC offers advanced analytics that show you at a glance which sourcing channels are most effective and drive the most conversions. This way, it will become relatively easier for you to prioritize the most relevant candidate sources, optimize your recruitment budget, and post jobs on the right channels, every time. In short, you can invest more in the channels that bring you more talented candidates!

With such advanced analytics, you can visualize your most fruitful candidate sources in appealing charts or graphs that give you a quick breakdown of the information you need.

So why is this KPI important for your talent acquisition strategy?

Think about it this way, if one of your talent acquisition KPIs is to reduce turnover, it really is useful to know where your top-notch candidates are coming from and what kind of postings pique their interest. Will it be videos that showcase the company’s culture? Or the blog posts related to the company? Whichever the case, track why some sources aren’t triggering enough conversions and through this KPI you will be to track these sources and improve their efficiency.

Quality of Hire

recruiter using video interviewing software

While all talent acquisition metrics are important, many companies find that the quality of hire metric is the holy grail of all other metrics. Just like beauty, the quality of hire is in the eye of the beholder – it varies from organization to organization.

When hiring, you need to find the right candidate – not just any candidate who will take the job. Therefore, this metric can help you see how successful your company has been in hiring the right fit for the job.

Truth be told, this KPI can be a bit trickier to measure than the other ones. Simply because it’s specific to your company goals and what ‘’quality’’ means to you.

So for example, it may involve calculating turnover rates, performance reviews, team fit, and employee retention. Simply put, the formula for calculating the quality of hire is (performance + productivity + retention) ÷ (N)

This means, recruiters need performance and retention data to accurately calculate this KPI. And remember, while crunching in the numbers can shed some great light, you shouldn’t forget about measuring how the candidates fit with the company’s culture. So if you keep on attracting awesome hires that only last a couple of months with your company – it might be that you’re screening for the wrong traits.

Although it may be somewhat challenging to tell if the prospective candidates will be the right fit before you bring them on, you can easily pinpoint patterns between high-quality hires based on pre-defined criteria.

To improve your quality of hire, you can always opt to leverage video interviewing software like EVA-SSESS. One of the greatest benefits of using video interviewing software is that you have one centralized place to assess the candidates. Meaning, video assessment interviews are stored on the cloud and you can revisit them at any time you wish. As we mentioned earlier, if you’ve got a model answer or specific keywords that you wish to hear from the candidates, our video interviewing software can instantly spot them for you, and create a relevancy percentage for each answer. This means that you can compare the candidate’s answers to yours, and quickly make a decision as to whether this candidate meets your company’s expectations or not. As a result, video interviewing software allows you to hire qualified candidates, rather than spend more time contemplating their qualifications and eligibility. Allowing you to seamlessly improve and optimize your talent acquisition strategy.

Interviews per hiring decision

talent acquisition team

Various talent acquisition KPIs measure essential activities in the hiring stage. Whether it’s the cost per hire, time to fill, quality of hire – and much more. While these KPIs might revolve around the candidate, they still lack insight into the resources that are demanded from other important decision-makers or stakeholders.

Therefore, interviews per hiring decision is a metric that can enable recruiting teams to discover the average number of interviews that are needed in order for a hiring decision to be made. So, assume that you have a vacancy for a Marketing Specialist and you’ve got 5 quality candidates in your talent pool. Let’s say each one needs three interviews, which means you’ve got a total of 15 interviews to make – even though only one of them will make the final cut.

Still, that’s 15 interviews per hiring decision.

Now, remember, this benchmark will always vary based on the position that you’re hiring for. Because a highly specialized or senior role might require more interviews or assessments to be conducted.
And if you’re looking to interview candidates fast and in less time – video assessment interviews will always come to the rescue. Simply because video assessment interviews enable you to effortlessly qualify candidates without the need to spend an exorbitant amount of time interviewing them face-to-face. Therefore saving more than 90% of your valuable time and money when interviewing candidates!

Candidate Experience (Net Promoter Score)

talent acquisition focusing on candidates

There is no standard or easy way of giving a candidate an experience that is existentially superb, without putting in the effort to track the metrics that are necessary to prove that your methods and strategies are running efficiently.

Let us start by saying that the candidate experience extends throughout the entire hiring process. It doesn’t stop once a candidate gets an interview. It’s an ongoing process. The process starts from the moment a candidate discovers a position to the moment he or she receives an offer or rejection letter. All in all, this KPI can either hinder or enhance your talent acquisition strategy. So if your interview process is painstakingly slow, it can severely impact your employer brand. Or, if your recruiting team interacts with candidates in a very impersonal tone, it can also negatively impact the candidate experience. This is a big setback – because it’s important to get this talent acquisition metrics right. So the best way to start is by implementing a survey after each step in the hiring process.

The easiest way to calculate this metric is by subtracting the % of candidates who rate the experience 0-6 from the % of candidates who rate the experience 9 or 10. Then, the result you get will be the net promoter score or candidate experience.

Why is this metric important? Because when taken lightly, it can go beyond simply losing top talent. According to research, around 42% of candidates give the lowest rating possible when they experience a poor candidate experience, and will be less likely to recommend the company to their network. So the net promoter score can help recruiters gauge how candidates feel about the overall hiring process. Not only will this help you assess each and every hiring step – but you’ll also be able to create a more holistic view of the candidate experience and pinpoint bottlenecks or gaps that you may have never known about before.

Keeping it short

We don’t track talent acquisition KPIs because everyone else is doing it – or because it’s good for our health. We do it to see what’s working and what’s not in talent acquisition! Only then, will we be able to get the resources, tools, or technology we need to address these setbacks head-on.
So when it comes to selecting and monitoring the KPIs that will influence your talent acquisition strategy, you will make great strides in ensuring that you are always assessing and improving your talent acquisition efforts.

Ready to achieve talent acquisition success?‏

With our end-to-end hiring platform, build a fast, friendly, and exceptional talent acquisition process. Hire top talent at scale and see how getting started couldn’t be any easier.
Show me how ‏

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