22 Essential Recruitment Metrics for In-House Recruiters in 2024

To keep things structured, we’ll group these key performance indicators into different categories, such as hiring efficiency, cost efficiency, quality of hire, and DEI metrics.

Let’s dive right in.

Hiring efficiency metrics

1. Time to fill (TTF)

Measures the average number of days to fill a vacant position. Ideally, aim for a shorter time period, to minimize productivity gaps and cost impacts. Track trends and compare against industry benchmarks to identify areas for improvement.

• Benchmark: The industry standard for TTF varies by sector, but as of 2024, an average time-to-fill of 45 days is considered competitive. For tech roles, the average TTF can range from 30-45 days, while senior management positions might take 60-90 days.
• Improvement suggestion: Analyze reasons for prolonged filling times. Consider streamlining your recruitment process and the alignment between your hiring teams, employ automation for effective candidate sourcing, and improve your job descriptions.

2. Time to hire (TTH)

Specifically focuses on the candidate journey, measuring the average time from job application to acceptance. This helps assess your internal hiring process effectiveness and identify potential bottlenecks.

• Benchmark: Benchmarking for time to hire can vary by industry, but a competitive benchmark is typically around 30-45 days. This amount of time ensures a swift and efficient hiring process.
• Improvement suggestion: To improve TTH, consider implementing streamlined application processes, efficient communication channels, and automation technology for faster candidate evaluations.

3. Applicant conversion rate

Indicates the percentage of applicants who complete the entire application process. A low rate might suggest a lengthy or difficult application, deterring qualified candidates. A higher rate suggests effective engagement and conversion of job seekers.

• Benchmark: A healthy conversion rate hovers around 20-30%, but this can fluctuate based on industry and job level.
• Improvement suggestion: Compare against your industry and identify areas for improvement. Monitor and optimize your application process for user-friendliness. Streamlining steps and minimizing obstacles can positively impact conversion rates.

4. Recruitment funnel conversion rates

Assesses conversion rates at different stages of the recruitment funnel, pinpointing areas for improvement in the hiring process. For example, it measures the sourcing channel effectiveness, total number of candidates who start the application process, the application completion rate, and so on.

• Benchmark: Ideal conversion rates vary by stage, with initial application conversion aiming for 60-70%, and subsequent stages around 30-40%.
• Improvement suggestion: Regularly evaluate conversion rates at each funnel stage. Identify bottlenecks and streamline the process to improve overall submission efficiency and candidate experience.

5. Time to start (TTS)

Measures the duration from a candidate's acceptance of the offer to their actual start date. This metric focuses on the efficiency of the onboarding process and the time it takes for new hires to become fully productive.

• Benchmark: A well-optimized time to start can range from 2 to 4 weeks, ensuring a swift transition from acceptance to productivity. This time frame benchmark reflects the industry standard for efficiently integrating new hires into the organization.
• Improvement suggestion: For a data-driven approach to TTS, streamline onboarding processes, provide comprehensive orientation materials, and facilitate effective communication between HR, hiring managers, and new employees.

6. Offer acceptance rate

Measures the hire ratio, or the percentage of candidates who accept job offers extended by your organization. This metric provides crucial insights into the attractiveness of your positions and the overall success of your recruitment process.

• Benchmark: Benchmarking for offer acceptance rate can vary, but a competitive rate often hovers around 70%-80%. This benchmark reflects the industry standard for successful candidate conversions.
• Improvement suggestion: To increase the number of applicants who accept your job offer, seek feedback from both successful hires and candidates who declined offers. Analyze reasons for offer declines (e.g., compensation, company culture, competing offers). Address shortcomings and tailor your offer process to be more attractive.

7. Interview-to-offer ratio

Measures the efficiency of the recruitment process by evaluating the conversion rate from interviews to job offers. This ratio helps gauge how effectively candidates progress through the hiring stages.

• Benchmark: A balanced interview to job offer ratio can be between 2:1 and 4:1, depending on the selection process and candidate pool quality.
• Improvement suggestion: Assess the interview-to-offer ratio to identify areas for improvement. Streamline the interview process by ensuring clarity on evaluation criteria, enhancing communication between hiring teams, and providing interview training to assess candidates effectively.
  

8. Open position aging

Measures the average time a job posting remains open, helping identify areas for improvement in the hiring process.

• Benchmark: Positions aging beyond 45 days may indicate inefficiencies.
• Improvement suggestion: Analyze open position aging to address potential bottlenecks. Optimize sourcing strategies, reassess job requirements, and enhance collaboration between hiring teams to expedite the hiring process.

Cost efficiency metrics

9. Cost per hire

Calculates the total cost of filling a position, including advertising, interview expenses, and recruiter time. Track this metric closely to ensure cost-effective hiring practices.

• Benchmark: This benchmark is highly dependent on industry and position level. For instance, hiring an entry-level position might cost around $3,000, while executive roles can reach $50,000 or more.
• Improvement suggestion: To improve the cost per hire, regularly assess and optimize recruitment expenses. Consider asking your best candidates for referrals, and promoting your job openings in your most cost-effective channels.

10. Sourcing channel cost

Measures the cost per candidate acquired through each sourcing channel, such as job boards or employee referrals. This metric aids in identifying the most cost-effective channels for attracting talent.

• Benchmark: Benchmarking for sourcing channel cost varies, and industry norms should be considered.
• Improvement suggestion: Optimize your talent acquisition strategy by regularly reviewing and analyzing the effectiveness of different sourcing channels and of your career pages. Allocate budget to the sources of hire delivering most quality candidates and explore emerging channels to stay ahead in the competitive talent landscape.

11. Cost of getting to optimal productivity level (OPL)

Tracks additional costs incurred until a new hire reaches full productivity. This metric provides insights into the efficiency of onboarding processes.

• Benchmark: Benchmarking for cost of getting to optimal productivity level is industry-specific and should be established based on organizational goals.
• Improvement suggestion: To minimize the cost of getting to optimal productivity level, streamline onboarding processes, provide comprehensive training, and facilitate effective communication.

12. Recruitment ROI

Measures the Return on Investment (ROI) for recruitment activities, assessing the effectiveness of your hiring strategies and recruiting channels against the resources invested.

• Benchmark: Benchmarking for recruitment ROI is specific to industry and organizational goals. Establish benchmarks based on the goals set for recruitment efforts.
• Improvement suggestion: To enhance recruitment ROI, regularly evaluate the effectiveness of recruitment strategies in achieving organizational goals, but also your recruitment costs. Analyze key recruiting metrics, track the success of different sourcing channels, and optimize budget allocations based on the channels delivering the best results.

Quality of hire (QoH) metrics

13. Quality of hire

Measures new hire performance, retention, and cultural fit.

• Benchmark: Track hire performance (metrics like productivity, goals achieved) and retention rate. Industry averages vary; assess whether your hires meet or exceed job expectations and stay for a significant period.
• Improvement suggestion: Implement robust pre-hire assessments, conduct thorough reference checks, and invest in effective onboarding to ensure quality hires who stay long-term.

14. First-year turnover rate

The first year attrition measures the percentage of new hires who leave within the first year. A high turnover rate could indicate poor quality hiring decisions or inadequate onboarding.

• Benchmark: Quality of hire is subjective but can be assessed through performance evaluations, with an ideal rating of 80% or higher.
• Improvement suggestion: Regularly assess and analyze the performance of hires. Conduct feedback sessions with hiring managers and establish key performance indicators aligned with organizational goals. Continuously refine recruitment strategies to attract candidates with a better cultural fit.

15. New hire job satisfaction

Monitors the satisfaction levels of hires after a certain period, influencing retention and overall workplace morale.

• Benchmark: A job satisfaction rate of 70-80% is considered positive, indicating content and engaged employees.
• Improvement suggestion: Conduct regular surveys or interviews to gauge job satisfaction. Address identified issues, enhance workplace culture, and provide opportunities for professional growth to boost overall satisfaction.

16. Hiring manager satisfaction

Measures hiring managers' perecption of the new hire's fit and performance. Conduct surveys or interviews to gather feedback and improve future hiring practices.

• Benchmark: Averages vary, but aim for satisfaction scores above 70% on factors like candidate quality, time-to-fill, and overall recruitment process.
• Improvement suggestion: To enhance this metric, conduct regular surveys or interviews to gather feedback on the new hire's fit and performance. Use the insights to address any identified issues and continuously refine hiring processes.

17. Candidate net promoter score (NPS)

Evaluates candidate experience throughout the hiring process. A high NPS score indicates positive candidate experience and increases potential for positive employer branding.

• Benchmark: Average NPS for recruitment varies by industry, but generally above 30 is considered good.
• Improvement suggestion: To improve NPS, regularly collect feedback through surveys or interviews. Address identified pain points in the candidate experience, enhance communication, and streamline processes to create a positive and memorable journey for candidates.

18. Employee retention rate

Measures the percentage of employees who remain with the organization over a specific period. High retention rates indicate successful recruitment and employee satisfaction.

• Benchmark: Industry benchmarks can vary significantly, but overall aim for over 80% retention within the first year. High-turnover industries like hospitality might have lower benchmarks around 60-70%.
• Improvement suggestion: Regularly track and analyze retention rates. Implement retention strategies such as mentorship programs, career development opportunities, and employee recognition to foster a positive work environment.

19. Referral rate

Tracks the percentage of hires that come through employee referrals, reflecting the effectiveness of internal recommendations.

• Benchmark: Industry benchmarks can vary, but aim for at least 10-15% of hires coming from employee referrals.
• Improvement suggestion: Encourage and incentivize employee referrals. Monitor referral rates and implement strategies to boost referrals, fostering a positive company culture and strong internal networks.

20. Candidate experience

Measures the overall experience of applicants throughout the hiring process.

• Benchmark: Aim for positive feedback and satisfaction scores above 4 out of 5 on a typical scale.
• Improvement suggestion: Streamline your application process, provide timely communication, and be transparent about expectations. Create a positive impression to attract and retain top talent.

DEI metrics

21. Diversity hiring rate

Tracks the percentage of hires from diverse backgrounds, including gender, ethnicity, disability, and sexual orientation. Use this data to set and monitor diversity goals and ensure inclusive hiring practices.

• Benchmark: Diversity targets should align with industry standards, with many aiming for a 30% diversity representation.
• Improvement suggestion: Set diversity targets, regularly assess progress, and adjust recruitment strategies to attract a diverse pool of candidates. Foster an inclusive workplace culture to support diversity initiatives.

22. Adverse impact

Ensures that hiring practices do not unfairly disadvantage specific groups, promoting fairness and equal opportunities in the recruitment process.

• Benchmark: Benchmarking for adverse impact is subjective and should align with legal and industry standards. Regularly review and update benchmarks based on changing regulations and organizational goals.
• Improvement suggestion: To address adverse impact, conduct regular audits of recruitment practices to identify any potential biases. Implement training programs to raise awareness among hiring teams about unconscious biases and promote diversity and inclusion.

As an in-house recruiter, these metrics provide a holistic view of your recruitment process. However, remember that you can choose the metrics that best align with your specific recruitment strategy, goals and resources.