Recruitment is a job that requires a lot of knowledge and professional skills, and it is also one of the jobs that requires strict monitoring and evaluation of performance indicators. In addition to objective and subjective assessments of attitude and expertise, building and applying a correct KPI mechanism is an extremely important task in operating and managing the personnel of this department.
Applying KPIs can help managers know the true capacity of each individual, from the source exploitation, screening, preliminary interview, in-depth interview, to the candidate care process and determining the quality of the recruited person during the working process. From there, make adjustments, suggestions, penalties/rewards and appropriate management methods.
What is KPI?
KPI (Abbreviation for: Key Performance Indicator): is a measurement index to evaluate the work efficiency of a department in the enterprise. Depending on each department and each enterprise, there will be different KPI indicators and calculation methods. In addition, although the KPI for each department or individual is different, these indicators must follow the principle SMART
- S – Specific: Specific, clear, easy to understand.
- M – Measurable: Measurable.
- A – Achievable: Suitable for the staff's capacity.
- R – Realistic: Realistic.
- T – Time bound: Time limit to achieve target.
KPI indicators in recruitment.
Each staff in the recruitment department will have different KPI indicators applied. Recruitment Manager, Admin - Supervisor - Recruitment Specialist will have their own KPIs. Within the scope of this article, Bellsystem24-Vietnam Only provide common KPI indicators that large enterprises often apply to their human resources.
1. KPI for Recruitment Specialist.
- Number of channels/sources (Online, Offline, Referral,..) obtained in a certain period of time. (This index depends on the recruitment needs of each business)
- Number of profiles collected: Total number of candidate profiles collected in a certain period of time (Some businesses can clarify this index by providing indicators on the number of profiles of each exploitation channel)
- Candidate attendance rate for preliminary interviews (usually by phone): An indicator of the recruiter's ability to exploit appropriate channels and evaluate candidate profiles.
Calculation formula = (Number of candidates passing the preliminary interview/total number of applications)*100
- Rate of candidates attending formal interviews: An index to assess the preliminary interview skills of personnel.
Calculation formula = (Number of candidates attending formal interviews/number of candidates attending preliminary interviews)*100.
- Employee engagement rate: An indicator of the recruiter's overall interviewing, negotiation and persuasion skills.
Calculation formula = (Number of employees participating in the interview/number of candidates officially interviewed)*100.
- Employee engagement time after recruitment: A comprehensive and monitoring indicator of the quality of recruited personnel by the recruiter.
2. KPI Admin recruitment department.
- Timely reporting of progress as required by superiors.
- All candidate records throughout the recruitment process are backed up and secured.
- All information about channels and recruitment sources is backed up and secured.
3. Recruitment manager KPI.
- Minimum number of staff guaranteed according to target.
Calculation formula = New human resource targets – achieved.
- Quality of human resources is guaranteed according to the criteria: Determined by the working time of new personnel and the results of capacity assessment.
- Recruitment cost/personnel: Determined by the maximum cost that can be used to recruit one person.
Calculation formula = [Total cost approved by the company/(Marketing cost + Source channel rental cost + Total recruitment department salary)] / total number of recruited employees.
Above are important KPI indicators that large enterprises often apply to their recruitment department personnel. These indicators are easily measurable and comply with SMART principle in the standard for building KPI sets for businesses. However, depending on the characteristics of each company, these indicators may change.
Building a KPI set for the recruitment department is an extremely necessary task to monitor, measure and evaluate the performance of this department. At the same time, it is possible to take timely corrective actions and reward/punish, to ensure the quality of operations is always optimized.
