Every aspect of your business is an investment, including hiring new employees. Filling a job opening costs more than just the new employee's salary, too, from advertising and time costs of handling applications to training and workplace integration. The effectiveness of your hiring process is critical, especially as a startup or a growing small business. Understanding the metrics of hiring and recruiting can illuminate where and how this process could be improved and made faster and less expensive.
Measuring Success in Hiring
What constitutes an "effective" hiring process? How do you quantify your recruiting impact? Recruitment metrics are a means of measuring critical aspects of the hiring process to produce workable data. Businesses use many such metrics, covering factors such as the time it takes to find a candidate for a role, the number of responses from candidates reached out to, the turnover rate, and how many candidates applied for the position through given channels. Which metrics matter depends on the business's particular needs, which vary based on size, financial performance, market stability, etc. Some metrics are relatively straightforward, such as the time-to-hire, while others involve several factors or are more abstract and not easily quantified, so make sure you know what data you're looking for and that you have some frame of reference (e.g. a means of assessing job performance from new employees).
Applying Hiring Metrics for Improvement
As always, data collection is only as useful as what is done with the data. Here, you should use the metrics collected to determine ways to effectively reduce hiring costs. The exact answers will vary based on the data and on your business's particular case, but there are several possible approaches to try.
- If you're getting few candidates applying for a position, try advertising on more popular or mainstream job boards. If you need candidates that are more qualified from the start to reduce training costs, look to specialist job sites.
- A compelling message to candidates, including reasons to apply, such as job benefits and the work culture, may draw better attention.
- Streamline the process with effective applicant tracking systems to make candidate data more accessible and less cumbersome.
- Build talent pools from the candidates available to you, so that when the time comes you'll already know who to reach out to and can spend less on sourcing.
- For temporary positions like IT or insurance consulting, outsourcing may be preferable to trying to hire new employees if you don't expect to need the role filled for an extended period.
About 3XY Insurance Solutions
3XY Insurance Solutions provides innovative solutions and consulting services to insurance executives looking for a competitive edge. We develop exclusive programs and products; leverage markets, partnerships, and talent; and capitalize on digital capabilities to accelerate growth and increase profitability. Contact us today at 215-322-5497 and see if we can grow your insurance business and improve its profitability.
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