1. Assessing and
analyzing the
Effectiveness of
Recruitment
Shubham Singhal
80303120053
NMIMS, Hyderabad

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Assessing and analyzing the Effectiveness of Recruitment
Core Staffing Performance Metrics
Recruiters, like all HR professionals, are under increased pressure to demonstrate their value to
their organizations and customers. It is wise to be proactive in meeting this demand: by the time
senior management actually asks for a demonstration of value, it is usually too late to act - they
have already made up their minds.
Recruiters can take advantage of four core staffing performance metrics: (1.) Actual Time vs.
Contracted Time to Start, (2.) Staffing Efficiency, (3.) Hiring Manager Satisfaction, and (4.) New
Hire Quality. These metrics involve only a modest level of data collection and will not only provide
a measure of the value that recruiting brings to its customers, but just the simple of act of measuring
will help improve operations. Here's a breakdown of each metric, the data needed to calculate it,
and what information they provide.
 New Hire Quality
This is the rating of the new hire by the hiring manager. It is recommended that this evaluation be
conducted three to six months after hire. It takes at least three months before a new hire performance
can be accurately assessed and after 6 months, work place influences become a dominant factor in
new employee performance. To fairly judge the quality of a new hire, it's important to define
expectations prior to recruiting and then compare these expectations to actual performance. The
following list provides a starting point for developing the criteria for new hire:
 Goals
 System compatibility
 Capacity
 Motivation
 Knowledge and skills
 Performance

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 Experience
 Customer compatibility
 Work group compatibility
 Organization compatibility
 Change/learning posture
 Actual Time vs. Contracted Time to Start
In lieu of the traditional "Time to Fill," metric, which can be easily manipulated and distorted,
consider using the ratio of the actual start date to the targeted start date that gets negotiated with the
hiring manager. This ratio indicates how closely you met the expectations of the hiring manager.
In addition, negotiating a start date with the hiring manager helps set realistic expectations about
when someone will be in their seat working, which is what the hiring manager really cares about.
In addition, using this metric will help reduce the likelihood of the "fill all open positions ASAP"
fire drill that many recruiters must contend with.
 Hiring Manager Satisfaction
This is the hiring manager satisfaction rating with the hiring process.
Hiring manager satisfaction is often based on a general post hire questionnaire but there is an
inherent problem with this approach -- the hiring manager has no pre-established guidelines by
which to judge the recruiter. A fairer and more useful questioner is one which is completed before
and after the recruitment process for a new position. This type of questionnaire ensures that both
the hiring manager and recruiter are clear about what they expect from the hiring process.
 Staffing Efficiency
While the traditional Cost-per-Hire metric is widely used and provides some meaningful indication
of effectiveness, it does not account for variations in factors such as the level of the position being
filled, labor market conditions, and availability of workers by region. Staffing Efficiency ratio is
easily calculated as follows:

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Determine your Total Costs the sum of your Internal Costs (salaries, office space, supplies, general
overhead) and your External Costs (all external expenses which are incurred to specifically identify
candidates - advertising, contingency and retainer fees, research costs, annual fees for posting jobs
on the Internet).
Divide your Total Costs by Total Compensation Recruited (TCR) - the sum of the base STARTING
salaries for each external hire during their first year. External compensation recruited is the best
measure of recruiting production, and the Staffing Efficiency metric will illustrate how efficiently
you are bringing in this compensation.
Staffing Efficiency = Total Costs/TCR. Staffing Efficiencies in the range of 5% - 9% are considered
excellent, and those above 16% indicate some needed attention. However, these ranges can vary by
industry, organizational size, and region, and it is best to compare your own results to benchmark
data.
The hiring manager and recruiter should meet prior to recruiting to review all these areas and
determine expectations for each. By proactively taking accountability for their contributions and
backing up their assertions with credible metrics, recruiters will actively demonstrate their value to
their organization and customers. By using the four core staffing performance metrics to assess
their effectiveness, recruiters will be put themselves at the leading edge of the human resources
profession that is under increasing pressure to demonstrate its value. It is always far better to lead
with metrics than to be asked to produce them.

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The Recruiter’s Scorecard
It is important to realize upfront that many of the criteria listed in this scorecard require data or
information that must be collected by central management. If you fail as a manager to take the
necessary steps required to gather this information you are (whether intentionally or not) restricting
every individual recruiter’s opportunity for praise, recognition, and continuous improvement. It’s
also important to note, that it is common knowledge that individual recruiters do not have total
control over each of the factors in the hiring process that influence an individual recruiter’s
effectiveness. Rather than complaining about this the lack of control, recruiters must instead
assume the responsibility of influencing managers and other process owners in order to ensure that
the desired results are achieved. Rather than whining or blaming others, recruiters must accept
their role as the “captain of the ship” if they are ever to be rated as excellent in recruiting. Following
are the metrics recommended for individual recruiters:
1. Performance of hires
 Performance appraisal rating of new hires. What was the average performance appraisal
score of the people the recruiter hired (ratings after six months and after one year)? How does
that average compare to the average performance appraisal rating of all new hires? (This is a
measure of the quality or on-the-job performance of the hire.)
 The number of new starts. How many new hires resulted from the work of the recruiter? How
does it compare to the average number of hires for all recruiters?
 Hard-to-fill positions. How many hard-to-fill or key positions were filled as a result of the
work of the recruiter? How does it compare to the average number of hard-to-fill hires for all
recruiters?
 Voluntary turnover. What was the voluntary turnover rate of new hires (at the end of six
months, and the first year)? How does it compare to the average voluntary turnover rate of all
new hires?
 Involuntary turnover. What percentage of new hires had to be terminated within the first
year? How does that percentage compare to the average involuntary turnover rate of all new
hires?

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2. Manager satisfaction with the results By sending a user survey to all managers (or a
representative sample of managers) immediately after a hire is completed, you can assess their
satisfaction with the primary recruiter on that hire. Each quarter you should summarize the results
and then assess:
 Satisfaction with the hire. What was the average manager satisfaction score with the quality
of the person hired (for each recruiter)? How does that satisfaction rate compare to the average
manager satisfaction rate with all recruiters?
 Satisfaction with the quality of the final candidates. What was the average manager
satisfaction score with the quality of the final candidates from each recruiter? How does that
satisfaction rate compare to the average manager satisfaction rate with all recruiters?
 Satisfaction with the quality of the resumes submitted. What was the average manager
satisfaction score with the “quality” of the resumes that were submitted to them for review (by
each recruiter)? How does that satisfaction rate compare to the average manager satisfaction
rate with all recruiters?
3. Diversity results
 Diversity hiring ratios. What percentage of all hires made by this recruiter this year were
diverse? How did that percentage compare to the average diversity hiring rate?
 Diversity candidates presented. What percentage of all resumes and candidates presented to
all managers were diverse? How does that percentage compare to the company average?
4. Employee referrals
 Percentage of referrals. What percentage of all hires came from employee referrals? How did
that percentage compare to the company average? (Note: The extensive use of referrals is
important, because a high referral rate has many added side benefits. As a result, it’s important
for recruiters to actively encourage managers and employees within their assigned business
unit or assigned job family to refer top quality candidates.)

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5. On-time results
 Percentage of hires by “need date.” What percentage of hires were completed on or before
the start date that the manager specified? How does that percentage compare to the company
average? (Note: This requires you to put the “date needed” on all requisition forms. The date
needed is a superior measure compared to the traditional time-to-fill metric, because hiring
people fast when they are not immediately needed is a waste of resources. In addition, fast
hiring relative to a fixed standard (the standard number of days to fill) means little if the
damage to the business begins the first day after a position remains unfilled after the need date.)
6. Candidate, applicant, and new hire satisfaction
By sending a user survey after a hire has been completed to all finalists and new hires, as well as
to a representative sample of applicants and interviewees, you can assess their satisfaction with the
primary recruiter on that hire. Each quarter you should summarize the results and then assess:
 New hire satisfaction. What percentage of new hires stated that they were “extremely
satisfied” when they were asked to rate how satisfied they were with the services provided by
the recruiter and with the overall hiring process? How does each percentage compare with the
average of all new hires?
 Finalist’s satisfaction. What percentage of finalists (those who were given second interviews
or the top five final candidates), when asked to rate how satisfied they were with the services
provided by the recruiter and with the overall hiring process, answered “extremely satisfied”?
How does each percentage compare with the average of all finalists?
 Interviewee satisfaction. What percentage of interviewees stated that they were “extremely
satisfied” when they were asked to rate how satisfied they were with the services provided by
the recruiter and with the overall hiring process? How does each percentage compare with the
average of all interviewees?
 Applicant satisfaction. What percentage of randomly selected applicants stated that they were
“extremely satisfied” (for positions controlled by the recruiter) when they were asked to rate

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how satisfied they were with the services provided by the recruiter and with the overall hiring
process? How does each percentage compare with the average of all applicants?
7. Responsiveness
By using “mystery shoppers,” or asking selected candidates and managers about the time it takes
for a recruiter to return a call or inquiry, you can assess a recruiters’ overall responsiveness to their
customers. It is important to note, however, that the recruiter’s total req load should be used as a
mitigating factor when you assess an individual’s responsiveness.
 Response time. What was the average number of hours it took for a recruiter to return a call
or inquiry from a candidate or a manager? How does the response rate compare with the
average for all recruiters?
 Response accuracy. What percentage of answers provided by the recruiter could be judged to
be accurate when a sample of these answers are assessed by recruiting management? How does
that accuracy rate compare with the average for all recruiters?
 Time to fill. What is the average number of days it takes a recruiter to fill a position? (Note:
The time to fill is only important if it is considered simultaneously with the
quality/performance of the hire. Also, as noted earlier, time to fill is always less important than
the number of positions filled by the need date.)
 Internal cooperation. How well and how often does this recruiter cooperate with other
recruiters and other HR functions? (Note: Although this is a subjective assessment, it can be
measured through an anonymous survey among all recruiters and HR professionals that are
some how involved in recruiting.)
8. Other indirect indications of a quality recruiter
Although these are not specific recruiting results, each of these actions can eventually have a direct
impact on overall recruiting success.
 Contribution to branding. How many talks were given by this recruiter? How many audience
members attended? How many articles was this recruiter quoted in, or how many articles were

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authored by this recruiter this year? Did this recruiter actively participate in the team whose
goal was to have your firm listed on the different “best place to work” lists? Did this recruiter
actively participate in the employee referral team?
 Sources used. What is the utilization rate by this recruiter of the sources that produce the best-
performing hires?
 Use of agencies and executive search. What percentage of this recruiters hires required the
use of outside sources? How much money did this recruiter spend on external search help,
compared to the company average?
 Names. How many new names did this recruiter add to the company’s candidate database?
 Relationships with new hires. Does the recruiter have evidence that they routinely ask new
hires for the names of other potential candidates at their old firm? Do they also ask the
candidate what worked and what didn’t during the hiring process, in order to improve it?
 Hires from competitors. How many hires that came from direct competitors was this recruiter
responsible for? (Note: In these cases, your organization gets competitive intelligence, and the
competitor’s performance is likely to decline)
 Complaints. What is the number or percentage of employment-related inquiries, complaints,
or lawsuits (EEOC, OFCCP and civil) this recruiter was responsible for?