Measuring the Effectiveness of the Recruitment and Selection Process 1. Create a measurement standard.

Judging the effectiveness of any business process is difficult without a solid measurement system. Consider using new employee turnover, employee satisfaction metrics or average position vacancy time as measurement standards. You can also use qualitative assessments through management, employee and candidate surveys. 2. Trac measurement data. !easurement standards should be trac ed over time as an indicator of the success or failure of recruitment and selection processes. Consider trac ing these measures on a monthly, quarterly or yearly basis. "ndustries with high natural turnover may want a more frequent measurement, while a company with low employee turnover may suffice with routine, but infrequent evaluations. #ositive trending data indicates effective processes. $egative trending measurements allude to underlying problems that need to be addressed quic ly to avoid impacting the business. %. &eview costs. 'oo at the overall costs your company e(pends for all recruitment and selection endeavors. Costs should include advertising e(penditures, human resources personnel time, signing bonuses and reimbursements for moving costs. &eview the cost of each type of investment and ensure the e(penditures are resulting in quality employee candidates. )ffective spending can help target the right type of employee candidates. *. )nsure recruitment and selection processes enhance your business image. "mproper recruitment and selection process can have a negative impact on how your business is perceived by potential employees, business partners and customers. +howing you value employees even before they are your employees sets the stage for a mutually rewarding wor ing relationship. ,. -uarantee that processes conform to business and legal requirements. Your business can face financial and legal hurdles if anti.discrimination, employee eligibility and labor law standards are not upheld. +pot. chec documents and conduct informal interviews with recent hires to ensure legal compliance. Common recruitment metrics 1. C/$0"0/T) &/T"1 2or agencies wishing to trac candidate interest and3or the short.listing resources required for a typical candidate pool. To add meaning to this ratio, an agency should first see to understand various 4ob application and short. listing methods and their relative effectiveness. total candidates 3 offers accepted

2. "$T)&$/' 3 )5T)&$/' C/$0"0/T) &/T"1 6seful for agencies that frequently use internal candidates to fill positions or that have established strategies around recruiting internal talent to reduce turnover and improve development opportunities. "nternal recruits are often calculated to include all internal movements, transfers and promotions "$T)&$/' 3 )5T)&$/' &)C&6"T+

%. &)C&6"T!)$T +16&C) 7&)/8019$ This metric presents the percentage of e(ternal engagements by the recruitment channel through which they first learned of the vacancy. "t is particularly useful for agencies that use multiple channels to advertise employment opportunities and wish to monitor volume and quality of candidates by source in order to

ma(imi:e advertising ;spend<. &ecruitment +ource information can be captured via an application form or managed manually. )5T)&$/' )$-/-)!)$T+ = recruitment source > 3 )5T)&$/' )$-/-)!)$T+ 5 1??

*. /@)&/-) T"!) T1 +T/&T 6seful for agencies that wish to measure the efficiency and timeliness of their recruitment processes. /@)&/-) T"!) 2&1! "0)$T"2"C/T"1$ 12 &)C&6"T!)$T $))0 3 $)9 +T/&T)& C1!!)$C"$,. "$T)&@")9+ #)& @/C/$CY 2or agencies interested in finding the balance between interviewing ;enough< candidates and protracting the recruitment process by interviewing an e(cessive number of candidates. This metric can be a useful indicator of process quality Ae.g. recruitment speed or short.listing abilityB, candidate quality or of a selection team<s understanding of the role C/$0"0/T)+ "$T)&@")9)0 3 @/C/$C")+. C. 122)& &/T) These metrics will help the agency to identify inefficiencies in the recruitment process and gauge the strength of the employment value proposition or ;offer< to candidates. =122)&+ )5T)$0)0 3 C/$0"0/T)+ "$T)&@")9)0> 5 1?? D. 122)& /CC)#T/$C) &/T) These metrics are especially important for those who operate in highly competitive talent mar ets =122)&+ /CC)#T)0 3 122)&+ )5T)$0)0 > 5 1?? E. T6&$1@)& &/T) 12 $)9 &)C&6"T+ 6seful for those who wish to measure the rate at which new recruits Ae.g. F1 year length of serviceB leave the agency. The early departure of an employee may be due to any number of factors, including poor 4ob or organi:ational fit, a poor understanding of the position, or poor induction. "n this way, this metric can be used as an indication of recruitment effectiveness. = T)&!"$/T"1$+ Gnew recruitsH3 /@)&/-) I)/0C16$T> 5 1?? J. $)9 &)C&6"T+ #)&21&!/$C) &/T"1 /rguably the most important metric K it does not matter what the process costs, how long it ta es, or whether it meets e(pectations if the agency is recruiting the wrong people. This metric helps agencies to monitor the relative effectiveness of recruitment activities in securing high. performing candidates and to evaluate return on investment. "t may be considered more useful to establish an ;interim< performance rating at the three or si( month period as this can be more directly telling of recruitment effectiveness, while a performance rating a year into the employee<s service may be influenced by many other factors /@)&/-) #)&21&!/$C) &/T"$-. &)C)$T &)C&6"T!)$T+ 3 /@)&/-) #)&21&!/$C) &/T"$- . /-)$CY

1?. &)C&6"T!)$T C1+T #)& @/C/$CY These metrics will be most useful to agencies that wish to monitor the relative magnitude of direct and indirect recruitment costs. The ;Cost 7rea down< method can often be more valuable than the traditional costKperKvacancy metric because it isolates the various individual factors that affect cost. /$$6/' &)C&6"T!)$T C1+T 3 $6!7)& 12 @/C/$C")+. 11. &)C&6"T!)$T C1+T 7&)/8019$ Iigh costs may be driven by process inefficiencies, poor technology, ineffective advertising, e(cessive allowances or travel e(penses, or other factors. Iowever, recruitment costs must be considered in light of the potential costs and benefits of acquiring highKquality candidates. G &)C&6"T!)$T C1+T =type>3 T1T/' C1+T > 5 1?? 12. $)9 &)C&6"T!)$T T6&$1@)& C1$T&"76T"1$ /s a general rule, any employee who voluntarily leaves within the first year of service can be interpreted as a poor recruitment decision. This metric can also be an indicator of other problems within the agency. &ecruitment mista es result in higher turnover, higher costs and lower productivity. "t is therefore important to spend more upfront to ensure that those recruited are the best suited to the agency = T)&!"$/T"1$ .+I1&T +)&@"C) 3 T)&!"$/T"1$+ > 5 1?? 1%. &)T)$T"1$ &/T) This is a useful benchmar ing metric for agencies who understand their patterns of candidate attraction and separation Awho is 4oining, who is leaving, and for what reasonsB and who wish to monitor and measure their retention rates in light of new I& strategies. =+T/&T 12 #)&"10 I)/0C16$TL )5T)&$/' &)C&6"T+. T)&!"$/T"1$+> 3 = +T/&T 12 #)&"10 I)/0C16$T L )5T)&$/' &)C&6"T+> 5 1??.