08 Global RACR day 4 - Measuring the Effectiveness and Success of Recruitment

1. RACS® – RecruitmentAcademy®CertifiedSourcer Milan Novak

2. Recruitment & SourcingAnalytics RecruitmentFunnel • Whatinformationweneed to do ourworkbetter? • What data weneed to beable to improvetherecruitmentprocess? • What data ourManagersneed?

3. Recruitment & SourcingAnalytics Numbers game… • 20 • 4 1

4. Recruitment & Sourcing Analytics RecruitmentFunnel

5. Recruitment & SourcingAnalytics ‘If you can’t measure it, you can’t manage it’ - Peter Drucker ‘Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple’ – Steve Jobs ‘In God we trust; all others must bring data’ - W. Edwards Deming

6. Life Cycle: Candidate - Employee

8. Recruitment & SourcingAnalytics RecruitmentFunnel Recruitment‘sGoldenMetric QualityofHire

9. Recruitment & SourcingAnalytics RecruitmentFunnel Recruitment‘sGoldenMetric QualityofHire

10. New HireRetention • (6, 9, 18 months) • HiringManagersSatisfaction • (surveys, NPS) • PerfomanceReviews Recruitment & SourcingAnalytics RecruitmentFunnel How to measureQualityofHire • Time to Perform • Pre-hire data • (psychometric testing, references)

11. Recruitment & SourcingAnalytics RecruitmentFunnel Recruitment‘s Silver Metric Cost per Hire

12. Recruitment & SourcingAnalytics RecruitmentFunnel Recruitment‘s Silver Metric Cost per Hire

13. Whatisthecostof a badhire? MonthlySalary = Employerscost = Costofhire = Training + Infrastructure = Theemployeeleavesatthe end ofprobation period (3 months)

14. Whatisthecostof a badhire? MonthlySalary = 3 000 Euro Employerscost = 20% (3600 Euro) Costofhire = 1 500 – 6 000 Euro Training + Infrastructure = 2 000 Euro 3 600 euro x 3 = 10 800 + 6 000 + 2 000 = 18 800 Euro Theemployeeleavesatthe end ofprobation period (3 months)

15. Recruitment & SourcingAnalytics RecruitmentFunnel Recruitment‘s Bronze Metric Time to Hire

16. Recruitment & SourcingAnalytics RecruitmentFunnel Recruitment‘s Bronze Metric Time to Hire

17. Recruitment & SourcingAnalytics RecruitmentFunnel OtherImportantMetrics • Source ofHire • Offer acceptanceRate • CandidateSatisfaction • Drop out rates during interview process • Diversity (gender, disability, race, ethnicity, education, other ….) • Type of hire (external, internal, referral, Mobility, Contractor, other) • Data quality and accuracy (internal database) • Attraction volume (differentiated targets – Process management) • Brand recognition

18. Recruitment & SourcingAnalytics RecruitmentFunnel 5 Reasons to EliminateUselessMetrics • Metric has no goal…. Hard to measure success • Metric has multiple definitions…. Leaves it open to assumption • Metric data source is unknown…. And no one trusts it • Metric name is vague…. So no action is taken • Metric is hard to visualize…. So its stuffed into a report

19. Recruitment & Sourcing Analytics RecruitmentFunnel

20. Recruitment & Sourcing Analytics RecruitmentFunnel 590 200 60 40 10

21. Recruitment & Sourcing Analytics RecruitmentFunnel 590 Sales target = 30 000 Euro Averageplacementfee = 6 000 Euro 5 placements to reachthetarget 200 60 40 10

22. Recruiter 360 Model Recruiter

23. Sourcing Model 1 : 2,5 RecruiterSourcer

24. Direct RecruiterSourcer

25. Hub RecruiterSourcingLeadSourcer

26. Recruitment & SourcingAnalytics RecruitmentFunnel