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To hire one person through a recruitment agency, the employer meets with 7 out of 12 recommended candidates. This is the result of current recruitment statistics conducted by the crowdstaffing platform Antal - ReX Recruitment Exchange.
Nowadays, numbers play a huge role, also in the field of recruitment. Thanks to digitization, almost everything is measurable and can be analysed. The fact that recruitment can be measured and should be measured is not new. The main question is how to measure it effectively? What criteria and determinants to choose so that it brings measurable benefits for business?
What are the key performance indicators (KPIs) in recruitment?
Companies measure the time and efficiency factors of their internal departments and set KPIs (key performance indicators) for service providers. In tender processes, questions about metrics and data analysis are often asked. The optimal indicators for monitoring and controlling the effectiveness of recruitment can be divided into three groups:
- Number of recommended candidates vs meetings
- Meetings with candidates vs employment
- The time from the opening of the vacancy to employment
Their systematic analysis is necessary to conduct effective recruitment and thus increase the efficiency of the entire HR department, which also translates into proper operational activities of the business.
When an employer outsources a recruitment service to an external company, it expects results as soon as possible. In order to estimate the probability of success within the expected guidelines, a number of variables must be verified and the condition of the market taken into account - explains Karolina Korzeniewska, ReX Manager, Antal.
The reality of the labor market and unemployment data
Currently, the most misleading data is the unemployment rate, which suggests that the situation has not changed for several years, while the reality on the labor market has succumbed to the influence of inflation and has resulted in increased activity of candidates looking for better earning options.
Theoretically, this should make it easier for the employer, but the real effect is that he receives 300 applications for an advertisement for a warehouseman, and 15 for an expert. In the first case, the problem is the lack of processing power to reliably process a large volume of candidates. In the second, unrealistic financial expectations of applicants, who often look for a job mainly to fill a hole in the household budget - comments Karolina Korzeniewska, ReX Manager, Antal.
The data collected over the last 5 years shows that in order to hire one person through an agency, the employer meets with 7 out of 12 recommended candidates. However, analyzing this information taking into account the specifics of the industry, we see that they differ in the real world. In the SSC (business shared services) industry, almost every second candidate encountered is employed, and in some IT sectors it is difficult to obtain three resumes of interested and profile candidates. That is why it is so important to use statistics, but related to the situation on the market and the professional environment.
The same applies to estimates regarding the duration of the project. They must be based on the simplest principle that governs economics - supply versus demand. If we know that the average duration of a recruitment project by an agency is 4 weeks - according to the Antal report "Recruitment Trends" - we must not forget that when all companies in a given industry implement new rules, e.g. it will be extremely difficult to find an expert in this field in a few months. When the pandemic forced companies to digital transformation, the candidate market in this field was saturated, financial requirements increased by 50% and the availability of candidates decreased by the same percentage - adds Karolina Korzeniewska, ReX Manager, Antal.
How to optimize recruitment processes for the benefit of business?
The analysis of numbers and recruitment indicators is not only a tool for monitoring effectiveness, but also an excellent basis for improving recruitment processes. Appropriate use of data allows you to identify areas that require improvement, optimize the duration of processes, develop a strategy for acquiring the best candidates and eliminate unnecessary costs.
For example, by analyzing data on the duration of recruitment processes, you can identify the stages where delays most often occur, such as verifying references or coordinating meeting schedules. Thanks to this, specific actions can be taken to shorten these stages and increase the effectiveness of the recruitment process - explains Karolina Korzeniewska, ReX Manager, Antal.
Improving the effectiveness of recruitment processes can also contribute to:
- Increasing the quality of employment through a meticulous selection of the best-suited candidates, which increases the efficiency, motivation and retention of employees.
- Reduction of costs related to recruitment by eliminating redundant processes, optimizing activities and effective use of resources.
- Regular analysis of the collected data is necessary for effective recruitment and increasing the efficiency of the HR department. By analyzing the indicators, it is possible to identify areas that require improvements, e.g. lengthy recruitment processes, low number of jobs compared to the number of meetings or delays in hiring.
Ensuring the highest quality of employment, fast action and optimal use of resources is the key to building a strong and competitive employee team that contributes to the success of the organization in the long term. Crowdstaffing platforms are one of the tools to optimize recruitment processes. It is an innovative solution that combines the advantages of crowdsourcing and freelancing, creating an effective ecosystem for searching and engaging the best talents. For employers, the use of such a platform brings many benefits, such as time savings, wide access to highly qualified professionals, or lower costs, which can have a direct impact on business success - sums up Karolina Korzeniewska, ReX Manager, Antal.