9 Recruiter Goals & KPIs for Success in 2024

Recruiters need to focus on these 9 key goals and KPIs in 2024:

1. Quality of Hire
2. Time-to-Fill
3. Cost-per-Hire
4. Candidate Experience
5. Source of Hire
6. Diversity and Inclusion
7. Offer Acceptance Rate
8. Employee Retention
9. Recruitment Process Efficiency

Why these matter:

• Find better candidates
• Hire faster
• Reduce costs
• Improve company image
• Build diverse teams
• Keep new hires longer

Goal	Key Metric	Why It's Important
Quality of Hire	Performance ratings	Ensures good fit
Time-to-Fill	Days to fill role	Speeds up hiring
Cost-per-Hire	Total cost / hires	Manages budget
Candidate Experience	Satisfaction score	Attracts top talent
Source of Hire	Best channels	Focuses efforts
Diversity	% diverse hires	Drives innovation
Offer Acceptance	% offers accepted	Refines strategy
Retention	% employees staying	Shows hiring success
Process Efficiency	Time-to-hire	Streamlines workflow

To improve:

• Use an ATS to track data
• Set clear goals
• Check progress often
• Share results with team

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What are recruiter goals and KPIs?

Recruiter goals and Key Performance Indicators (KPIs) are tools that help improve hiring processes and align with company objectives. Let's break them down:

Recruiter Goals

These are specific targets that recruiters aim to achieve. They should be:

• Specific
• Measurable
• Achievable
• Relevant
• Time-Bound

For example, a goal might be "Reduce time-to-hire by 20% within the next quarter."

Key Performance Indicators (KPIs)

KPIs are numbers that show how well recruiters are doing their job. They help track progress towards goals. Common KPIs include:

KPI	What it Measures
Time-to-hire	How long it takes to fill a position
Cost-per-hire	How much money is spent on each new hire
Quality of hire	How well new employees perform
Candidate satisfaction	How happy job seekers are with the hiring process

Why Goals and KPIs Matter

1. They help make better hiring decisions
2. They show where to cut costs
3. They improve the experience for job seekers

"Tracking KPIs like cost-per-hire and time-to-fill roles allows recruiters to understand the average cost and time spent per hire, which can lead to more efficient resource allocation." - Recruitment Industry Expert

Real-World Impact

Bad hiring choices can hurt companies:

• 80% of employee turnover comes from poor hiring decisions
• Replacing an employee can cost 6-9 months of their salary
• 50% of candidates turn down jobs due to a bad hiring experience

Tips for Using Goals and KPIs

1. Use an Applicant Tracking System (ATS) to collect data
2. Check your progress often
3. Adjust your goals as needed
4. Share results with your team

1. Quality of Hire

What is Quality of Hire?

Quality of Hire (QoH) measures how well new employees perform and contribute to a company's success. It's a key metric for recruiters in 2024, with over 60% of companies saying finding quality hires is their biggest challenge.

How to Measure Quality of Hire

Measuring QoH isn't easy because it involves looking at different factors over time. Here are some common ways to do it:

Measurement Method	Description
Performance Reviews	Check how well new hires do their jobs
Retention Rates	See how many new hires stay with the company
Manager Feedback	Ask managers if they're happy with new hires

To get a QoH score, companies often use this formula:

QoH = (Job Performance + Ramp-up Time + Engagement + Cultural Fit) / 4

Why Quality of Hire Matters

Bad hires can cost a lot. One estimate says a poor hiring choice can cost up to $240,000. That's why getting QoH right is so important.

Tips to Improve Quality of Hire

1. Find Better Candidates: Figure out which sources give you the best hires and focus on those.

2. Reduce Bias: Look at which recruiters bring in the best hires and learn from their methods.

3. Use Skills Tests: Give candidates tests to check their skills before hiring them.

4. Ask Better Questions: Try different interview questions to see which ones help you find the best people.

5. Check References: Use tools to quickly check references and find candidates who are likely to do well.

Real-World Example

"We started measuring quality of hire at our tech startup last year. We found that candidates from employee referrals had a 20% higher performance rating after six months compared to those from job boards. This led us to increase our referral bonus, resulting in a 15% improvement in overall new hire performance." - Sarah Chen, HR Director at TechNova Inc.

Key Takeaways

• QoH is hard to measure but very important for company success.
• Use a mix of methods to get a full picture of hire quality.
• Focus on improving your hiring process to get better results.
• Keep tracking QoH over time to see if your changes are working.

2. Time-to-Fill

What is Time-to-Fill?

Time-to-Fill measures how long it takes to fill a job opening, from when the job is posted to when a candidate accepts the offer. It's a key metric for recruiters to track in 2024.

Average Time-to-Fill

According to the Society for Human Resource Management (SHRM):

Industry	Average Time-to-Fill
Overall	36-42 days
Nursing	54 days

These numbers can vary based on the job type and industry.

How to Calculate Time-to-Fill

To find your average Time-to-Fill:

1. Add up the days it took to fill each position
2. Divide by the total number of positions filled

For example, if you filled 4 positions in 10, 20, 20, and 30 days:

(10 + 20 + 20 + 30) / 4 = 20 days average Time-to-Fill

Why Time-to-Fill Matters

Long hiring times can:

• Increase hiring costs
• Reduce productivity
• Cause you to lose top candidates to competitors

Tips to Improve Time-to-Fill

1. Build a candidate database: Keep track of past applicants and promising candidates.

2. Use employee referrals: Create a program that rewards employees for referring good candidates.

3. Streamline your hiring process: Look for steps that take too long and find ways to speed them up.

4. Use recruitment technology: Tools can help post jobs to multiple sites and manage applications more quickly.

5. Regularly check your metrics: Keep an eye on your Time-to-Fill to spot trends and issues early.

Real-World Example

"We cut our Time-to-Fill from 45 days to 30 days by creating an employee referral program. This led to a 20% increase in quality hires and saved us $50,000 in recruitment costs last year." - John Smith, HR Director at TechCorp

Key Takeaways

• Time-to-Fill is a crucial metric for measuring hiring efficiency.
• The average is 36-42 days, but it varies by industry.
• Improving Time-to-Fill can save money and help you hire better candidates faster.
• Use a mix of strategies like referrals, technology, and process improvements to reduce your Time-to-Fill.

3. Cost-per-Hire

What is Cost-per-Hire?

Cost-per-Hire (CPH) is a key metric that shows how much money a company spends to hire a new employee. It includes all the costs related to finding, interviewing, and bringing on new staff.

How to Calculate Cost-per-Hire

Use this simple formula:

Cost per Hire = (Internal costs + External costs) / Number of hires

Cost Type	Examples
Internal	HR salaries, office space, training
External	Job ads, background checks, agency fees

For example, if you spent $7,000 on internal costs and $16,500 on external costs to hire 5 people:

Cost per Hire = ($7,000 + $16,500) / 5 = $4,700

Why Cost-per-Hire Matters

Knowing your CPH helps you:

• Plan your hiring budget
• Find ways to save money
• Make smart choices about where to spend on hiring

Real-World Examples

1. Ericsson: Cut their CPH by 70% using social media and employee referrals. This also helped keep new hires longer.

2. Nokia: Reduced CPH by 74% by using Indeed as their main job board. This made it easier for people to apply.

Tips to Lower Your Cost-per-Hire

1. Use employee referrals: Ask your current staff to suggest good candidates. It's often cheaper and leads to better hires.

2. Improve your company image: A good reputation attracts more candidates without extra cost.

3. Use technology wisely: Pick tools that help you screen resumes and manage candidates faster.

4. Track where your best hires come from: Focus your money on the sources that work best for you.

Important Numbers to Watch

Metric	Why It's Important
Quality of Hire	Shows if higher costs lead to better employees
Time to Fill	Longer hiring times can increase costs
Retention Rates	Tells you if new hires stay long enough to be worth the cost

Key Takeaways

• The average CPH in the U.S. is about $4,000, but it varies by industry.
• Track your CPH regularly to spot trends and issues early.
• Balance cost-cutting with maintaining hire quality.
• Use a mix of strategies to lower your CPH while still finding great candidates.

4. Candidate Experience

What is Candidate Experience?

Candidate experience is how job seekers feel about a company during the hiring process. It covers everything from when they first see a job ad to when they start working.

Why It Matters

A good candidate experience helps companies:

• Attract better job applicants
• Get more people to accept job offers
• Keep a good reputation

A bad experience can hurt a company. For example:

• 64% of job seekers say they might not buy from a company that gave them a bad experience
• 72% of job seekers share bad experiences with others

How to Measure Candidate Experience

Use these key performance indicators (KPIs):

KPI	What It Measures	Goal
Time-to-Hire	How long it takes to hire someone	Shorter is better
Interview-to-Offer Ratio	How many interviews lead to job offers	Higher is better
Candidate Drop-Off Rate	How many people quit during the application	Lower is better
Offer Acceptance Rate	How many people say yes to job offers	90% or higher
Net Promoter Score (NPS)	How likely candidates are to recommend your company	Higher is better

Tips to Improve Candidate Experience

1. Make Applying Easy

   • Keep applications short (15 minutes or less)
   • Make sure they work on mobile phones

2. Communicate Often

   • Tell candidates what's happening with their application
   • 81% of job seekers say regular updates make their experience better

3. Be Clear About the Job

   • Only 36% of candidates think job descriptions are clear
   • Explain the job and what you're looking for clearly

4. Respect Candidates' Time

   • Be on time for interviews
   • Don't make the hiring process too long

5. Ask for Feedback

   • Use surveys to find out what candidates think
   • Make changes based on what you learn

Real-World Example

HubSpot improved their candidate experience by:

• Putting videos on their career page showing what it's like to work there
• This helped candidates understand the company culture better

Key Takeaway

A good candidate experience is not just nice to have. It helps companies hire better people and can even affect their business. By focusing on making the hiring process better for candidates, companies can improve their chances of getting the best talent.

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5. Source of Hire

What is Source of Hire?

Source of Hire (SoH) shows where new employees come from. It tells you which recruiting channels work best, like job boards, referrals, or career fairs.

Why SoH Matters

Knowing your SoH helps you:

• Spend money on the right places to find candidates
• Make your hiring process better
• Improve how you market jobs

How to Track SoH

Use these methods to get accurate SoH data:

1. Ask new hires how they found out about the job
2. Use your Applicant Tracking System (ATS) to record where candidates come from
3. Look at website data to see which channels bring in the most interested people

Making SoH Work for You

Here's how to use SoH to hire better:

Action	Benefit
Start a referral program	Get more high-quality candidates
Stop using ineffective channels	Save money and time
Collect data from all recruiters	Get a full picture of what works

SoH in Action

Let's say a company hired 50 people in 6 months. Here's how it might break down:

• 20 from referrals (40%)
• 15 from job boards (30%)
• 12 from direct sourcing (24%)
• 3 from career fairs (6%)

This data shows referrals are working well, but career fairs might not be worth the effort.

Tips for Better SoH Tracking

1. Use surveys to find out how candidates learned about jobs
2. Make the most of your ATS to keep track of candidate sources
3. Look at website data to see which channels get the most interest
4. Get info from all your recruiters to see the big picture

Remember

SoH can be tricky because candidates might use multiple sources. Also, don't forget about good candidates who didn't get hired - they might be useful for future openings.

6. Diversity and Inclusion

What Are Diversity and Inclusion?

Diversity means having employees from different backgrounds. This includes:

• Gender
• Race
• Age
• Sexual orientation
• Disability status
• Cultural background

Inclusion means making sure everyone feels welcome and valued at work.

Why They Matter

Companies that focus on diversity and inclusion often do better. For example:

• They make more money from new ideas
• They make better choices
• Their workers are happier

A study by McKinsey found that companies with more diverse teams make more profit.

How to Measure Diversity and Inclusion

Here are some ways to track diversity:

Metric	What It Measures
Applicant Diversity	% of diverse job applicants
Hire Diversity	% of diverse new hires
Retention Rate	How long diverse employees stay
Leadership Diversity	% of diverse leaders

Tips to Improve Diversity and Inclusion

1. Set clear goals for hiring diverse candidates
2. Use simple language in job posts to attract more people
3. Train managers to avoid unfair choices when hiring
4. Start groups for employees from different backgrounds

Real-World Example

In 2020, Google set a goal to double the number of Black employees in leadership by 2025. They're tracking their progress and sharing updates each year.

Key Numbers

• 80% of workers want to work for companies that care about diversity
• Companies with diverse teams can be up to 20% more creative

Remember

Tracking these numbers is just the start. The real work is in making changes based on what you learn.

"Diversity is being invited to the party. Inclusion is being asked to dance." - Verna Myers, Diversity Expert

7. Offer Acceptance Rate

What is Offer Acceptance Rate?

Offer Acceptance Rate (OAR) shows how many job candidates say yes to job offers. It's a key number for recruiters to watch in 2024. A high OAR (90% or more) means your hiring process works well. A low OAR might mean you need to fix some things.

How to Figure Out Your OAR

Use this simple math:

OAR = (Number of Accepted Offers ÷ Total Offers Made) × 100

For example, if you make 100 job offers and 85 people say yes, your OAR is 85%.

Why OAR Matters

A good OAR helps you:

• Save time and money on hiring
• Get the best people to work for you
• Show that your company is a good place to work

OAR Numbers to Know

Type of Job	Average OAR
All Jobs	70-75%
Business	Low 80s%
Tech	63-68%

How to Make Your OAR Better

1. Pay Well: Make sure your pay and benefits are as good as or better than other companies.
2. Hire Faster: Don't make people wait too long. 60% of job seekers quit if it takes too long.
3. Be Nice to Candidates: Keep them updated. 83% of people like it when you tell them what's happening.
4. Let People Work from Home: 72% of workers want flexible jobs.
5. Make Your Company Look Good: Show why your company is a great place to work.

Real Company Example

DataGrail, a tech company, let people work from home more. After that, their OAR went up to 89.7%. The CEO, Daniel Barber, said more people are staying at the company now too.

Things to Watch

Keep an eye on these numbers along with your OAR:

What to Watch	Why It's Important
How Many People Quit Applying	Shows if your hiring process is too hard
How Long Hiring Takes	Faster is usually better
What Candidates Think	Happy candidates are more likely to say yes

8. Employee Retention

What is Employee Retention?

Employee retention is how well a company keeps its workers. It focuses on happy, engaged, and productive employees who want to stay.

Why It Matters

Keeping good employees:

• Saves money on hiring and training
• Keeps knowledge in the company
• Makes teams work better together

How to Measure It

Use this simple math:

Retention Rate = (Employees at End of Period ÷ Employees at Start) × 100

For example, if you start with 100 employees and end with 90, your retention rate is 90%.

Ways to Keep Employees

Strategy	How It Helps
Pay Well	Makes employees feel valued
Offer Growth	Keeps employees interested in their work
Be Flexible	Lets employees balance work and life
Recognize Good Work	Makes employees feel appreciated

Real Company Examples

1. Zillow

   • Problem: Low intent to stay after a merger
   • Solution: Started a program to listen to employees
   • Result: Better career development and more employees wanting to stay

2. Bright Horizons

   • Action: Paid for teachers to get more education
   • Result: 80% of employees saw a future at the company after one year

Key Numbers to Know

• Engaged employees are 87% less likely to leave
• Teams that work well together make 21% more profit
• Companies that ask for feedback have 61% engaged employees, vs. 45% for those that don't

Tips for Better Retention

1. Make everyone feel welcome at work
2. Set clear goals for diversity and inclusion
3. Ask employees what they think and act on it
4. Help employees stay healthy and happy
5. Talk to employees about why they stay

"Nearly 50% of employees quit their job because of a bad manager." - 2018 Udemy Report on Employee Experience

Remember

Keeping employees happy isn't just nice—it helps your business do better. Focus on making work a good place to be, and your employees will want to stay.

9. Recruitment Process Efficiency

What is Recruitment Process Efficiency?

Recruitment process efficiency means hiring quickly and well. It covers everything from posting a job to bringing new hires on board.

How to Measure It

Use these numbers to check how well you're doing:

Metric	What It Measures
Time-to-Hire	Days from job post to offer acceptance
Application Completion Rate	% of people who finish applying
Interview-to-Offer Ratio	How many interviews before making an offer

Ways to Get Better

1. Use Good Tools: Get an Applicant Tracking System (ATS) to help with tasks.
2. Make Clear Steps: Write down how hiring should work so everyone knows what to do.
3. Keep Learning: Train your hiring team often so they know the best ways to hire.

Numbers to Watch

Keep an eye on these:

• Time-to-Fill: How long it takes to fill a job
• Candidate Drop-Off Rate: % of people who quit applying
• Offer Acceptance Rate: % of people who say yes to job offers

Real-World Example

In 2022, Unilever improved their hiring by using AI. They cut their time-to-hire from 4 months to 4 weeks for some jobs. This saved 100,000 hours of interview time in one year.

"Using AI in our hiring process has been a game-changer. We're finding great people faster and saving a lot of time," said Jeroen Wels, Unilever's Executive VP of HR.

Tips to Try

1. Use Video Interviews: They can speed up early screening.
2. Make Mobile-Friendly Applications: More people will finish applying.
3. Give Quick Feedback: Tell candidates what's happening to keep them interested.

How to set and track recruiter goals and KPIs

Setting clear goals and tracking key performance indicators (KPIs) is crucial for recruiters in 2024. Here's how to do it effectively:

Types of Recruitment Goals

1. Talent Recruitment Goals: Focus on finding and hiring top candidates
2. Operational Recruitment Goals: Aim to improve HR processes

Using SMART Goals

Make your goals SMART:

SMART Criteria	Description	Example
Specific	Clear and precise	Reduce time-to-fill for tech roles by 20%
Measurable	Use numbers to track progress	Track time-to-hire, cost-per-hire
Attainable	Realistic but challenging	Consider your team's skills and resources
Relevant	Align with company needs	Set diversity targets if it's a priority
Time-based	Set a deadline	Achieve goal by end of Q2 2024

Steps to Set and Track Goals

1. Understand company needs

• Talk to department heads about their hiring plans
• Review the company's growth strategy

2. Look at past performance

• Check last year's hiring data
• Identify areas for improvement

3. Choose key KPIs

Common KPIs include:

• Time-to-hire
• Cost-per-hire
• Quality of hire
• Offer acceptance rate

4. Set SMART goals

Example: "Reduce time-to-hire for software engineers from 45 to 30 days by June 30, 2024."

5. Get buy-in

• Present goals to leadership
• Explain how they help the company

6. Use tracking tools

Tool	Purpose
Applicant Tracking System (ATS)	Manage applications, track hiring metrics
HR Analytics Platform	Analyze recruitment data
Regular Reports	Create visual dashboards of KPIs

7. Review and adjust

• Check progress monthly
• Adjust goals if needed based on company changes or market conditions

8. Celebrate wins

• Recognize team achievements
• Share success stories with the company

Remember: Goal-setting isn't a one-time task. Keep reviewing and updating your goals to stay on track in the fast-changing world of recruiting.

Wrap-up

As we look ahead to 2024, recruiters are focusing on nine key goals and KPIs to improve their hiring processes:

1. Quality of Hire: Ensures new employees fit well and perform as expected.

2. Time-to-Fill: Aims to reduce vacancy durations for better efficiency.

3. Cost-per-Hire: Helps manage recruitment budgets effectively.

4. Candidate Experience: Creates a positive impression on job seekers.

5. Source of Hire: Identifies the most effective recruitment channels.

6. Diversity and Inclusion: Builds a varied workforce to drive innovation.

7. Offer Acceptance Rate: Helps refine recruitment strategies.

8. Employee Retention: Provides insights into hiring effectiveness.

9. Recruitment Process Efficiency: Ensures smooth hiring workflows.

By focusing on these areas, recruiters can:

• Find better-fitting candidates
• Speed up hiring
• Cut costs
• Improve how job seekers see the company
• Build more diverse teams
• Keep new hires longer

To make the most of these goals and KPIs:

1. Use an Applicant Tracking System (ATS) to collect data
2. Set clear, measurable targets for each area
3. Check progress often and adjust as needed
4. Share results with your team and company leaders

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