Monday, April 29, 2019

Basic KPI / Statistic for Recruitment / Workforce Planning

29 Apr 2019: When managing your recruitment / workforce planning function, upper management will always request for a key performance indicator (KPI) to measure the effectiveness of your recruitment / workforce planning.

The most common KPIs / Statistic are: -

  • Speed of Recruitment (number of days / lead time to close a position) - this method can be the easier if you have an Application Tracking System aka "ATS" to support the tracking e.g., (i) Operators recruitment is targeted at 60 days and computation start when the manpower requisition (MR) is approved until the candidate report for work; (ii) Manager is 120 days from MR is approved until the letter offer / appointment is signed.

  • Cost Per Hiring. The formula ... adding together all the cost (listed below) and divided by the number of position recruited to get the average cost.
    • Job advertisement cost 
    • Recruitment technology e.g., ATS, online recruitment tool like "LinkedIn" and "Jobstreets"
    • Employee referral rewards
    • Travelling (e.g., taxi / flight ticket reimbursement to potential candidates; recruiter travelling & accommodation cost)
    • Background / reference checks
    • Relocation cost
    • Recruiter "employment cost"

Note: The cost-per-hiring is also affected by the hiring methods adopted by the organization. Cost-per-hiring can also determine the organization decision to outsource the recruitment function, and assessing employee turnover impact on the recruitment cost.

(Source: Modified from HR360, 2018) 
++The End++

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