A survey conducted by The Adler Group asked recruiters and recruiting managers to choose their top key metrics to determine a recruiting team’s success. Similar to a recruiting team, it is important to know the rate of success of an RPO, and many organizations are not familiar with how to measure the success of an RPO engagement. Using certain key recruiting metrics can give the organization the data points necessary to compare an RPO engagement to an internal recruiting team, especially in the case of a 'before and after' comparison.
Below is a list of the key metrics that we recommend to measure an internal recruiting team or an RPO engagement by:
- Candidates interviewed compared to number presented
- Candidates interviewed per hire
- Number of candidate interviews set up by recruiter by week or month
- The use of web trends to track ad performance
- Quality of candidates hired by recruiter and by manager
- Quality of candidates by sourcing channel
- Time to hire
- Candidate on-the-job performance compared to predicted performance
- Turnover by position
- Turnover by manager
Also organizations should have obtainable expectations from an RPO. Many organizations make the mistake of having unrealistic goals, and are often left disappointed in the outcome. Best in class RPO’s have typical results that include:
Higher offer acceptance rate- Overall 90% acceptance rate
Higher new hire retention rate- 55% improvement in new hire
Time-to-fill- 60% reduction in time to fill
Higher staffing efficiency ratio- Significantly increases
Lower cost per hire- Reduce it by 48%
Quality of candidate- 97% improvement
Hiring manager satisfaction- 67% increase in hiring manager satisfaction
*Aberdeen Group report “RPO in 2009”
It is important for an organization to know what key metrics to use to follow the success of the RPO. Knowing how to measure can lead your organization to increased ROI as well as time saving.
