The role of recruiting and talent acquisition is firmly in the spotlight as companies struggle to find talent to fill their roles within the organization. And with that spotlight comes the added pressure of communicating the value that we add to the organization in a way that executive leadership and hiring managers can understand. So today we are talking about recruiting metrics, but not just any old recruiting metrics. We’re focused on delivering and discussing the value that recruiting brings in such a way that our leaders can really see the benefits that we provide.
Episode 145: Recruiting Metrics Drive Business Processes with Jason Hopkins (@jhopp12)
On this episode of the Workology Podcast, I’m joined by Jason Hopkins, the Director of Talent Acquisition and Internal Marketing at Emerus Holdings.
In this episode we talk about all things recruiting metrics. I love Jason’s point of view that focuses not just on measuring recruitment metrics but focusing on the education and importance behind those specific metrics with both executive leadership and hiring managers. Jason’s team measures recruitment metrics like time to fill, time to start, candidate to hire ratio, and source of hire. However, Jason’s work focused on lost productivity is the one metric I really love. This measurement helps position recruiting and HR as a revenue center instead of a cost center. Meaning that you can place a number on the value of an inefficient process. If the recruiting team cuts time to fill by one day for each position when a company does 2,500 hires per year with a lost productivity metric of $150 a day could lead to $375,000 in revenue that recruiting has provided the company.
Communication is critical when it comes to discussing the effectiveness, opportunities, or challenges your recruiting organization faces. The critical thing is to not over promise what you will deliver and use every opportunity to discuss your recruiting numbers and the specific processes behind the work that your team does. Careful planning and strategy should go into your executive leadership conversations you have. Jason says that all managers and leaders have been part of the hiring process either as a candidate or when interviewing but few fully understand the work and processes behind the scenes and the work that’s involved to hire even a single candidate.
Turning Recruiting From Cost Center to Revenue Center
The key to finding your lost productivity metric is a challenging one and involves understanding the average revenue per employee per day across the organization. Once this metric is found and verified, I can be used to explain the revenue opportunity that recruiting can bring. More importantly, it can help you make the case for investment in tools, headcount, and technology to drive even more revenue opportunities.
Jason also shares his philosophy on the importance of recruiting dashboards. These are related but different than recruiting metrics. The terminology surrounding recruiting dashboard varies by vendor and individual. He likens his recruiting dashboard to the dashboard on a car providing recruiters quick snapshots into the efficiency and effectiveness of the recruiting organization. He looks for trends when viewing his dashboard and uses the dashboard to provide snapshots by region.
Using Service Level Agreements in Recruiting and Hiring
One area I want to dive in further that Jason briefly discusses in his interview is the use of service level agreements or SLAs. Jason and his team are just starting to implement them hoping to improve the relationship and commitment and expectation setting between recruiter and hiring manager. I’m excited to get an update from him on the success and learnings he had since rolling this out. In the interim, I’ve included some background information on SLAs for you to read in the resources section below.
Metrics and dashboards. Everyone needs them but, since we’re so pressed for time in our jobs, these seem to go by the wayside. I hope that Jason’s interview gave you some inspiration and food for thought when it comes to communicating metrics and building your recruiting dashboard.
Connect with Jason Hopkins.
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*A special thank you to my production team at Total Picture Radio.