Guide to setting KPIs for the recruitment department

Human resources are the leading factor determining the success of an enterprise. The recruitment department is responsible for searching and screening candidate profiles to recruit human resources for the departments. Therefore, in order to develop human resource recruitment, it is necessary to have recruitment KPIs to evaluate and come up with a comprehensive development strategy. Let's learn about recruitment efficiency metrics through the following article of Vietnam Manpower.

What are recruitment KPIs?

KPI is generally an indicator that evaluates the performance and completion of the work of an individual, a department or an enterprise. KPIs are expressed through ratios, figures, and other quantitative indicators suitable to the company characteristics of each object. KPIs are built at different levels to be both a goal and a measure of work progress and efficiency.

In the field of recruitment, KPI is a strategic indicator because thanks to these indicators, businesses can adjust the work results of each individual and department to meet the expectations of the company's development strategy. career in the future. When evaluating KPIs, it is necessary to focus on quality, close to reality to ensure a strong development speed for all relevant departments.

Recruitment KPI for HR

Each business has a different development strategy, so the recruitment KPIs also have certain differences. To measure the most effective recruitment efficiency, managers can base on the following recruitment indicators:

Percentage of candidate profiles through each recruitment period

Posting job ads to attract candidates is one of the first steps that HR needs to focus on to ensure effective recruitment. It can be through the company's own recruitment channel or external recruitment websites. However, the core point is how to reach as many potential candidates as possible. Thus, the rate of new applications received is high, increasing the chances of recruiting the right people for the right jobs.

Percentage of qualified candidates

When considering recruitment KPIs, qualified candidates only need to consider the basic requirements without going into depth about the suitability for the job. If this index is higher, meeting the KPI standard, it is possible to see:

- The way to convey information to candidates is correct and effective.

- The working time in the recruitment process is shortened.

- The formula for calculating recruitment KPI here is: Number of qualified candidates / total number of applicants in the period

Cost of recruitment budget

In the recruitment plan and strategy of each business, there is usually a separate section for this section. It is the budget spent to pay for posting job advertisements or traveling to interview candidates, etc. This part of the cost is lower the better, but when comprehensively assessed, this index is combined with other indicators number related to recruitment efficiency for the most accurate assessment.

Guidelines for setting up recruitment KPIs based on costs are: Total recruitment cost/total number of successful candidates.

Time spent in the recruitment process

The recruitment process consumes a lot of resources, so it is necessary to speed up the progress but still ensure the expected results. This is what any business wants to achieve.

Guide to setting KPIs for the recruitment department

Average cost per application

This is also a recruitment KPI that HR needs to pay special attention to. Thereby evaluating the effectiveness of the recruitment channel for businesses. In each recruitment round, the human resources department will have to choose many channels to advertise, so determining the effectiveness of each channel will greatly affect the recruitment budget later.

With the above sharing, we hope to help leaders and managers understand recruitment KPI standards. From there, measure and evaluate specifically the effectiveness of the recruitment process and make changes accordingly.