Notes from Hiring Success
Notes from Hiring Success : How Visionary CEOs Compete for the Best Talent.
Stop relying on Time-to-Hire and Cost-per-Hire metrics. They are not indicators of successful hiring.
We need three metrics to accurately measure our hiring success.
- Hiring Budget
- Hiring Velocity
- Net Hiring Score
Hiring Budget
Total Cost of Recruiting / New Hire Payroll, where cost includes TA salaries, technology spend, candidate travel cost, marketing & advertising.
Typical spend is between 5% and 15%, but this depends on speed and quality. See below.
Hiring Velocity
The percentage of jobs filled on time. A velocity of above 80% indicates healthy progress.
TTH is meaningless if we are not enabling the company’s objectives. In other words, does it matter if TTH has been reduced by x% if projects are not being completed due to lack of resources?
Net Hiring Score
Measures job fit, and should not be derived from your end of year performance reviews. Simple three step formula to calculate NHS.
- Ask HM: On a scale of 0-10, how much of a fit is the new hire for the job?
- Ask NH: On a scale of 0-10, how much of a fit is the job for you?
- NHS = (% of strong fits - % poor fits) x 100, where poor fits = {0…6} and strong = {9,10}
Examples
