Set expectations - if the “sourcing specialist” can’t make a guaranteed estimate of what you will be receiving, then don’t work with them.
When searching resume databases, how far back do you source?
Anyone can go back 90 or 120 days on a resume database and come up with results, but do you really think that a good candidate would be available after 90 days or more? Sourcers could be using the 90-day or older resumes for referrals, but find out up front if they are going to be doing this with your resumes.
Sourcing is a very specialized role, and not all people are cut out to perform it. By setting clear expectations up front, you are relieving what could be a huge headache in the future.
Most vendors will not tell you exactly where they are sourcing, but they should give you an idea of the various locations and search techniques they are using. For example, they should tell you if they are using resume databases, Internet research, making cold calls, and so on.
Do I have to pay up front?
You should not have to pay for services until after they have been delivered. You may have to sign an agreement that states that you have the intentions to pay if the guarantee is met, but you should not be required to pay in advance.
Add up the total amounts of salaries accepted by candidates each month, quarter, and year, including any sign-on bonuses or additional compensation not counted in the base salary.
This amount can then be tracked as a moving average and gives you a good snapshot of how much impact you have had on your organization.
You can provide feedback to your customers by separating the offers made for each department or client group you support.
Number of hires
Keep track of how many people you hire per department or client group each month, quarter, and year. You can get a quick snapshot of how you are doing in comparison to last month or last quarter by simply dividing the above sum of offers made by the total amount of offers.
For example, if you made $3 million in offers and hired 35 people the same quarter last year, you had a salary per hire ratio of $85,714.30. If you made $2 million in offers and hired 21 people this quarter, then you know that this quarter your salary per hire ratio is $95,238.
This tells you that although you hired fewer people in comparison to the same quarter last year, you have a higher ratio, so you must be improving.
Be sure to account for cost of living increases, and consider the average salary for that client group before you commit to any specific improvement figures.
It is the total amount of money spent per month, quarter, and year in recruitment expenses.
Make sure you include items like your recruiter and support staff salaries, utilities (Internet connection, phone bill, etc.), referral fees, placement fees, office supplies, tools, subscriptions and memberships purchased, job postings purchased, and other recruitment advertising costs, etc.
Cost per hire
This metric consists of dividing the total sum of offers accepted by the total amount of recruitment costs.
This measurement can be a bit misleading because sometimes there are hidden costs such as attending conferences or the cost of your website. In addition, turnover costs such as replacing bad hires and retraining new hires, opportunity costs, productivity losses, and other such business expenses may not be fully considered by this metric.
Using the cost-per-hire to evaluate historical performance may be appropriate as long as your business leaders understand that there are many items unaccounted, including quality of hire.
The first controversial measurement is the beginning of the recruitment cycle. Some organizations start counting from the time the requisition is approved, others from the time that it is open to internal applicants, and others begin counting from the point the job posting is public—while others won’t begin counting days until the job posting has been closed and no further applications will be received.
Be sure to pick one of those starting points and always be consistent; otherwise this metric will make absolutely no sense. The other end of the time-to-fill equation is a candidate’s start date.
The most accepted way to measure it is to end with the date the candidate shows up for their first day of work.
Your customer will typically be the hiring manager, but you may also have other customers such as fellow recruiters or the HR department.
Design a quick customer satisfaction survey that you can send to your customers once a year to track which areas have improved and which need additional improvement.
Quality of hire
This measurement follows how many of the hired candidates complete their first six months of employment. Some organizations also measure how many reach the two-year mark or stay on for four years.
Theoretically the longer a candidate stays with the company, especially if they get promoted, the better quality of hire that candidate was.
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