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How to measure recruitment effectiveness?

Recruitment effectiveness and recruitment efficiency are vital parts of the data-driven hiring process in any organization. The ultimate goal is to reduce hiring costs and increase the quality of hire. 

What is the main difference between Recruitment efficiency and Recruitment effectiveness? 

Efficiency is a measure of speed and cost, and recruitment effectiveness is a measure of quality. Recruiting effectively is frequently more crucial than hiring efficiently to accumulate more return on investment (ROI).

In this article, you will find three key metrics to measure recruitment effectiveness.

Why do you need to measure your recruitment effectiveness? 

Recruitment is an essential part of any organization. Keeping track of all the recruitment efforts is helpful because it will help you determine where to improve and make your process more efficient. 

How to measure recruitment effectiveness? 

There are key metrics to measure recruitment effectiveness and they are used to track hiring success and optimize the hiring process. Further, they provide a data-driven approach to the recruitment process, which allows recruiters to know what works for them and what doesn’t. Thus, you can make improvements in the recruitment process. 

List of 5 key metrics to measure recruitment effectiveness:

1. Source of hire:

Tracking the sources which attract new hires, has a huge impact on your recruitment results. This metric allows you to keep track of the effectiveness of different recruiting channels by estimating where your most successful candidates come from you can continue with this source. Also, you can eliminate the source from which most unsuccessful applicants are coming. Once you know which source is working for you, you can drive down your focus on that particular source and decrease the spending on those that aren’t.

2. New Hire Turnover

This metric estimates the number of employees who quit their job within their first year or another period defined by the company. The new hire turnover can be voluntary or involuntary. (Voluntary: candidate decides to leave the company. Involuntary: an employee is asked to leave.) Involuntary, is usually an indicator of poor first-year performance or a bad fit with the team or company culture. The second one is affected by multiple factors, and it is tricky to make the decision on that but it is often an indicator of unrealistic expectations which cause the candidate to quit. This could be due to a mismatch between the job description and the actual job, or the job and/or company has been oversold by the recruiter. (Source:

3. Quality of hire:

It estimates the value that new hires bring to a company and how much they contribute to results. This metric is difficult to measure. The most useful way to calculate the quality of hire is by proxy. Most organizations use the following three metrics as a proxy for estimating the quality of hire: 

  1. Pre-hire quality
  2. New hire performance metrics
  3. Turnover and retention metrics
  4. Hiring manager satisfaction rating
  5. Productivity of the new hire

4. Candidate job satisfaction:

This metric allows you to grasp how candidates perceive your whole recruitment process and the role sourced for. To track candidate satisfaction correctly include surveys or collect feedback from them. A low candidate job satisfaction emphasizes mismanagement of expectations or insufficient job descriptions.

5. Time to productivity:

Time to productivity measures how long it takes to obtain people up to speed and accomplish % of their goals. According to research by Oxford Economics, the average time a new employee takes to reach their OPL is 28 weeks. Employees from within the same industry usually take less, while employees from outside the industry take significantly longer (32 weeks). University graduates (40 weeks), school leavers (53 weeks), and unemployed (52 weeks) take the longest time. (Source: AIHR)

A recruitment process is successful when it fulfils its goals such as recruiting qualified candidates for the position and minimizing turnover rates. You can track all these recruitment metrics, and track your progress.