focusing on the right metrics for lean...
TRANSCRIPT
What is lean hiring, and why do metrics matter?
Some potential goals
Reduce costs
Hire more
Hire faster
Increase diversity
To properly measure hiring, you need a funnel
The actual funnel
Technical Phone Screen
Onsite
Offer
Hire
Recruiter Call
My favorite metric… cost per hire (CPH)
Total External Costs + Total Internal CostsCost per Hire ($) =
Total Number of Hires
Total External Costs + Total Internal CostsCost per Hire ($) =
Total Number of Hires
This is what you care about!
Total External Costs + Total Internal CostsCost per Hire ($) =
Total Number of Hires
Hard to compute and meaningless without time spent!
This is what you care about!
Total External Costs + Total Internal CostsCost per Hire ($) =
Total Number of Hires
The actual funnel
Technical Phone Screen
Onsite
Offer
Hire
Recruiter Call
Click here to try it yourself!
Thinking about hiring this way frees you up to quantify anything and iterate on it confidently!
Example 1: The hidden cost of agencies
Close rates?
Interview conversion rates?
You’re paying double!!
Example 2: The value of iterating on your interview questions
• Iterate on your questions because…
Just a 10% gain in conversion at the phone screen stage is worth $4K!
• Recruiter makes $75/hour and screens a resume in 1 min
• Strong brand — 10% conversion to screen, so 10 min for 1 viable candidate
• Weak brand — 1% conversion to screen, so 100 min for 1 viable candidate
Example 3: What is the value of employer branding?
WageAnnual Value of Branding 60
(MinutesWeak - MinutesStrong) * * 350=
~$40K if you thumbs up just one resume per day
Returning to hiring goals from the beginning…
• Cut underperforming channels
• The step that cuts the most people should always be at the beginning
• More time spent doing targeted, personal outreach pays off in much better conversion rates at the bottom of the funnel
• Iterate on your interview questions
• Invest in branding!Reduce costs
Reduce costs
Increase diversity
Increase diversity
Reduce costs
Hire faster Hire more
Hire faster
Increase diversity
Reduce costs
Hire faster
