1. Recruiting Metrics for Improved Performance Presented By Tom Darrow September 11, 2008 NC SHRM State Conference Copyright 2008 Talent Connections. All Rights Reserved.

2. Your Experience With Metrics How have you used metrics? Copyright 2008 Talent Connections. All Rights Reserved.

3. Agenda Recruiting Metrics – Why? Recruiting Metrics – What to Measure… Recruiting Metrics – How to Use… Copyright 2008 Talent Connections. All Rights Reserved.

4. To Ponder “There are three types of lies. Lies, Damned Lies, and Statistics.” Benjamin Disraeli What does 2 + 2 equal? Copyright 2008 Talent Connections. All Rights Reserved.

5. Recruiting Metrics – Why? To identify process steps that need improvement To anticipate market trends and initiate competitive adjustments To report recruiting results to senior management To support business cases for programs and expenditures in recruiting To evaluate and reward recruiting staff To evaluate effectiveness of change initiatives Copyright 2008 Talent Connections. All Rights Reserved.

6. Metrics to Measure “What gets measured, gets improved.” Quality of Hire Time to Fill Cost Per Hire Process Efficiency Acceptance Rate Recruiter Production Source Channels Recruiting Metrics Resumes Screens Interviews Offers Accepts Fills Use of system Efficiency Cost by source channel Copyright 2008 Talent Connections. All Rights Reserved.

7. Quality of Hire “What gets measured, gets improved.” Quality of Hire Time to Fill Cost Per Hire Process Efficiency Acceptance Rate Recruiter Production Source Channels Recruiting Metrics Resumes Screens Interviews Offers Accepts Fills Use of system Efficiency Cost by source channel Copyright 2008 Talent Connections. All Rights Reserved.

8. Quality of Hire – How to Measure Short Term – Create quality of hire ratings A = Exceeds job description requirements B = Meets job description requirements C = Could meet job description requirements with minimal training and coaching – Set company-wide annual percentage goals A = 20% B = 60% C = 20% – Within a week of hire, collaborate with Hiring Manager to secure ranking – After 6 months, secure another ranking from Manager Copyright 2008 Talent Connections. All Rights Reserved.

9. Quality of Hire – How to Measure Long Term – Review performance reviews Results by recruiter, source channel, department, hiring manager – Review retention Results by recruiter, source channel, department, hiring manager Copyright 2008 Talent Connections. All Rights Reserved.

10. Quality of Hire – Considerations/How to Improve Expand sourcing channels – Researchers – Contract Recruiters Is the company’s compensation plan competitive? Time to Fill – Is it competitive? Create interview methodology and train management Encourage internal transfers Utilize contractors Copyright 2008 Talent Connections. All Rights Reserved.

11. Time to Fill “What gets measured, gets improved.” Quality of Hire Time to Fill Cost Per Hire Process Efficiency Acceptance Rate Recruiter Production Source Channels Recruiting Metrics Resumes Screens Interviews Offers Accepts Fills Use of system Efficiency Cost by source channel Copyright 2008 Talent Connections. All Rights Reserved.

12. Time to Fill – How to Measure Days From Requisition to Acceptance Days From Requisition to Start Date Copyright 2008 Talent Connections. All Rights Reserved.

13. Time to Fill – Considerations/How to Improve Stop/Start – Consider it a new requisition How much does it cost to not fill opening? – Revenue loss per day Utilize phone screens Reduce # of interviewers Utilize technology – Videoconferencing – ATS Streamline requisition and offer approval process – Fewer signatures – Automate – Salary range approval in requisition Copyright 2008 Talent Connections. All Rights Reserved.

14. Cost Per Hire “What gets measured, gets improved.” Quality of Hire Time to Fill Cost Per Hire Process Efficiency Acceptance Rate Recruiter Production Source Channels Recruiting Metrics Resumes Screens Interviews Offers Accepts Fills Use of system Efficiency Cost by source channel Copyright 2008 Talent Connections. All Rights Reserved.

15. Cost Per Hire – How to Measure Total Direct Recruiting Costs Total Number of Hires* *or Total Number of Positions Filled Copyright 2008 Talent Connections. All Rights Reserved.

16. Cost Per Hire – How to Measure Total Direct Recruiting Costs Marketing – Brochures – Job Boards – Company Web Site – ERP Interview Training ASP/Applicant Tracking Candidate Travel Signing Bonus Recruiter Salaries Agency Fees Relocation Orientation/Training Background/Drug screens Testing Copyright 2008 Talent Connections. All Rights Reserved.

17. Cost Per Hire – Considerations/How to Improve Costs Not to include: – Time of Hiring Managers and others – Donations/Grants to Universities – Administrative costs Telephone Copies Supplies How to improve – Hire recruiters/contract recruiters instead of search firms – World class Employee Referral Program – Eliminate brochures – Agencies – Preferred Vendor List Copyright 2008 Talent Connections. All Rights Reserved.

18. Process Efficiency “What gets measured, gets improved.” Quality of Hire Time to Fill Cost Per Hire Process Efficiency Acceptance Rate Recruiter Production Source Channels Recruiting Metrics Resumes Screens Interviews Offers Accepts Fills Use of system Efficiency Cost by source channel Copyright 2008 Talent Connections. All Rights Reserved.

19. Process Efficiency – How to Measure Resumes # of Resumes10025:1 # of Hires 4 Screens # of Screens8080% # of Resumes100 Interviews # of Interviews4050% # of Screens80 Offers # of Offers1025% # of Interviews40 Acceptance # of Hires 440% # of Offers10 Copyright 2008 Talent Connections. All Rights Reserved.

20. Process Efficiencies – Considerations/How to Improve Automate process Define service level agreement between Recruiting and customers Copyright 2008 Talent Connections. All Rights Reserved.

21. Recruiting Efficiency Ratio Total Recruiting Costs Total Compensation Recruited Copyright 2008 Talent Connections. All Rights Reserved.

22. Total Recruiting Costs Total Compensation Recruited Recruiting Efficiency Ratio Copyright 2008 Talent Connections. All Rights Reserved.

23. Acceptance Rate “What gets measured, gets improved.” Quality of Hire Time to Fill Cost Per Hire Process Efficiency Acceptance Rate Recruiter Production Source Channels Recruiting Metrics Resumes Screens Interviews Offers Accepts Fills Use of system Efficiency Cost by source channel Copyright 2008 Talent Connections. All Rights Reserved.

24. Acceptance Rate – Considerations/How to Improve Don’t confuse effort for accomplishment Probably the least important metric Target should NOT be 100% How to improve – Better assessment – More accurate job descriptions – Analyze declines Reasons for decline What was accepted? Recommendations for improving process? Copyright 2008 Talent Connections. All Rights Reserved.

25. Recruiter Production “What gets measured, gets improved.” Quality of Hire Time to Fill Cost Per Hire Process Efficiency Acceptance Rate Recruiter Production Source Channels Recruiting Metrics Resumes Screens Interviews Offers Accepts Fills Use of system Efficiency Cost by source channel Copyright 2008 Talent Connections. All Rights Reserved.

26. Recruiter Production – What to Measure Quality of Hire Fills – Number of filled positions Cost per Hire Time to Fill Use of ASP/Applicant Tracking System Customer Satisfaction – Good process? – Hire a fit? Retention – 90 day probation period only Copyright 2008 Talent Connections. All Rights Reserved.

27. Recruiter Production – Considerations/How to Improve Role of Recruiting vs. Role of Hiring Manager – Screen, interview, and counsel or just source and forward? Ensure criteria used to assess recruiter is within their control Recruiter Workload – Exempt level positions – 20 to 25 per month** – Non-Exempt positions – 35 to 50 per month** – **depends on how many Hiring Managers and how many similar profiles Copyright 2008 Talent Connections. All Rights Reserved.

28. Source Channels “What gets measured, gets improved.” Quality of Hire Time to Fill Cost Per Hire Process Efficiency Acceptance Rate Recruiter Production Source Channels Recruiting Metrics Resumes Screens Interviews Offers Accepts Fills Use of system Efficiency Cost by source channel Copyright 2008 Talent Connections. All Rights Reserved.

29. Source Channels – What to Measure Agencies, ERP, Campus, Internet, Company Web Site, Newspaper – Acceptances – Quality of Hire – Time to Fill – Cost per hire – Process Efficiency Resumes to Hire Copyright 2008 Talent Connections. All Rights Reserved.

30. Source Channels – Considerations/How to Improve Research alternative sourcing channels Create your own sourcing channels – User group – Contest – Newsletter – Forum Copyright 2008 Talent Connections. All Rights Reserved.

31. Other Metrics AA/EEO/Diversity – Measure for adverse impact – Track metrics for reporting – Track metrics for enhancing diversity efforts Increase diverse applicant flow Generational analysis What else? Copyright 2008 Talent Connections. All Rights Reserved.

32. Using Recruiting Metrics Business Planning – Budgets – Resource plans Improve Process Efficiency Business case – Systems (ASP/Applicant Tracking) – Recruiter Headcount When report? – Weekly, Monthly, Quarterly, Annually Industry Standards/EMA Survey – WARNING! In-house or outsourcing Copyright 2008 Talent Connections. All Rights Reserved.

33. Recruiting Metrics – Getting Started Commit to data capture Compile company metrics from prior two years Set goals for next fiscal period – Push for a company staffing plan Capture data as it happens Communicate to senior management Copyright 2008 Talent Connections. All Rights Reserved.

34. To Ponder “ Attaining one’s objectives is not a cause for celebration; it is a cause for new thinking” Peter Drucker “People are the one true competitive measure.” Hal Rosenbluth Copyright 2008 Talent Connections. All Rights Reserved.

35. Thank You! Tom Darrow Founder and Principal Talent Connections, LLC 175 Inverness Approach Roswell, GA 30075 (770)552-1550 ext. 111 TomDarrow@talentconnections.net www. talentconnections.net Copyright 2008 Talent Connections. All Rights Reserved.