A GUIDE TO EVALUATING YOUR RECRUITMENT PROCESS

RECRUITMENT FACTS

• Employee turnover has increased to 16% since 2012*

• Employers think the recruitment process is becoming more difficult

• Use of social media has improved candidate quality by 50%*

*Taken from the Hiring Process Report 2015; Kelly Services

IMPORTANCE OF EVALUATION

• Ensures HR are accountable for their actions

• Monitors compliance

• Checks for bad practices

• Tests cost efficiency and allocation

• Demonstrates how HR adds value to organisation

EVALUATION MUST BE…

• Relevant

• Timely

• Clearly understood

• Able to provide positive contribution

COST OF REPLACING EMPLOYEES

DIRECT COSTS

• Work time of recruitment team

• Work time by those incidentally involved

• Online maintenance

• Agency fees

• Marketing fees

INDIRECT COSTS

• Loss of productivity during learning process

• Loss of productivity while teaching new employee

• Loss of productivity during notice period

• Loss of productiveness while job is vacant

COST OF EMPLOYEE TURNOVER

+ Loss of productivity from other employees filling in

+ In-house hiring costs

+ Termination administrative costs

+ Training/induction costs

+ Loss of productivity in early stages of employment

+ Loss of productivity in final stages of employment

- Unpaid costs while job vacant

= TOTAL COST OF EMPLOYEE TURNOVER

TYPES OF RECRUITMENT MEASURES

• On the job performance of new employees

• Engagement surveys

• Cost/benefit analysis

• Efficiency measures

• Quality of hire measures

• Lag indicators (has happened)

• Lead indicators (predictive)

EFFICIENCY MEASURES

• Time taken to fill vacancies

• Turnover rate of new hires

• Cost per hire

• Cost of each recruitment component

• Application conversion rates

• Survey of applicant experience

• Survey of hiring managers

QUALITY HIRE MEASURES

• % of employees still hired after one year

• % of employees that perform above expectations

• % with high performance review scores

• % offered fixed contract

• % promoted during first year

GUIDELINES FOR SELECTING MEASURES

• Work backwards (what do you already know?)

• Will there be a positive contribution to the business?

• Use a mixture of lag and lead indicators

• Don’t over analyse

• Measures must link to overall business goals

• Measures must identify gaps and underlying issues

GUIDELINES FOR SELECTION

• Is the process ongoing with continuous feedback?

• Focus only on issues that HR and IR can influence

• Segment data according to employee demographics

• Ensure data isn’t flaky

PRESENTING EVALUATION RESULTS

• Prepare reports with end user in mind

• Who will benefit from these results?

• Identify the business-critical jobs and roles and the metrics that fit them

• Prepare business case for introducing HR initiatives

• Identify all costs and where problems/gaps exist

• Use benchmarks

• Address key questions

• Make specific recommendations for change