Last blog post I talked about the importance of tying your analytics to hiring results - and in this post I want to dive a little deeper into this area.
Step 2: It’s all about the stage...
Candidate Pipeline stage-to-stage: measure volume and conversion rate between stages to know where you are getting stuck.
At the core of candidate analytics are two key metrics: volume and conversion rates. When analyzing your pipeline, a primary consideration is the conversion rate - how well are you doing at converting candidates from initial application to the various stages? How well are you doing at converting from one stage to another? Knowing your bottlenecks and where you have high drop off rates tells you where to focus to improve.
At the same time, you have a certain number of roles to fill so you also have to consider quality. Is your candidate pool large enough to deliver the number of quality hires required?
Start-to-Stage Analytics: What is the quality of the candidate pool? For all of those who are identified as potential candidates, what volume and percentage are considered quality – and eventually become hires? This can help you determine if you have the right sourcing strategy overall and for specific roles, geographies or recruiting channels.
Stage-to-Stage Analytics: How well are you progressing candidates through the pipeline? In this case, you are focusing on your ability to convert from one stage to another. This will help you quickly identify where you are having challenges in progressing candidates. For example, there is a high percentage of candidates converting from phone screen to 1st round interview. There is then a low percentage getting to the 2nd round interview. This suggests there is an issue with the criteria to screen candidates for interviews.
Segmentation is key
While your overall volumes and conversion rates will provide a high-level view of where focus is required, it will not give you enough information to know what to do next. You need to be able to analyze the results on various criteria. What roles are more challenging than others to fill? What locations are struggling to get an adequate candidate pool? Which recruiters are doing the best job at screening the quality candidates? This context is important to create the action plan and drive change.
To determine which analytics and segments matter most depends on your business priorities. For example, if you are growing fast and need to quickly expand the number of quality candidates, you will want to start with a focus on start-to-stage and segmenting by roles that are the focus for growth. You can then use stage-to-stage to make sure progression is occurring as expected.
By ensuring the tie back to business priorities, you then determine the scope of the data needed for the analytics.
A key question to understanding the effectiveness of the recruiting process:
“What is the quality of the candidates applying to our organization and how does it vary between geographies, roles, and sources?”
To answer this question, you need to be able to clearly articulate what quality means. We define a quality candidate as a candidate who reaches the stage in the hiring process where you establish the candidate has met the key criteria for the role. We will typically default to the initial in-person or hiring manager interview although you can determine what stage is best aligned to your organization process.
Stay tuned for Part 3 coming up on the blog next week where I'll explore diving into the data - and trust me - it's not that scary!