Which KPIs for recruiters are needed to implement if your business strives for faster hires, top tech skills, and a loyal tech team? Would you like to spot the working methods to track hiring success?
Typically, agencies that provide recruitment and talent management services for client companies analyze more data than in-house teams. This results in 30% more positions filled within deadlines and 27% lower turnover rates.
In this article, we will focus on the recruitment KPIs of IT staffing agencies. Pick the necessary metrics depending on your case ⬇️
1. Time to Hire
What to measure. Time to hire measures the efficiency of your recruitment process. It tracks how long it takes from posting a job to accepting an offer.
Why to measure. For tech roles, where demand is high, this KPI is crucial because long hiring cycles can lead to lost candidates. If your company takes longer than the industry average to hire developers, a process review might reveal that the technical assessment phase is too complex or the interview scheduling is inefficient. Adjusting these steps can speed up hiring without sacrificing candidate quality. Breaking down the stages (e.g., from initial interview to offer acceptance) helps pinpoint bottlenecks. If, for example, too much time is spent on background checks, this data highlights the need for process improvement.
2. Cost Per Hire
What to measure. Cost per hire evaluates the financial efficiency of your recruitment efforts. Cost per hire includes all expenses related to recruiting, such as advertising, recruiter salaries, and technology tools.
Why to measure. For tech roles, which often require specialized skills, the cost per hire can be higher. However, understanding and controlling this metric can help manage budgets better. For instance, comparing the cost per hire for software engineers across multiple sourcing channels can reveal which platforms yield the best candidates for the least expenditure.
If your cost per hire for tech roles is significantly higher than the industry average, it might indicate that you’re overly reliant on expensive tools or recruiting agencies. Redirecting investment into finding alternatives and leveraging employee referrals can reduce costs while maintaining quality.
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3. Quality of Hire
What to measure. Quality of hire evaluates how well new hires perform and contribute to the team. For tech roles, this recruiting KPI assesses whether the skills and experience of candidates meet expectations over time.
When to measure. This metric is particularly relevant for long-term success, as hiring poorly qualified developers or engineers leads to higher turnover and project delays. A high turnover rate among developers within six months could signal poor hiring decisions, indicating the need for more thorough assessments during the interview stage. Tracking the quality of hire ensures that the right people are brought into the organization, reducing attrition rates.
4. Application Completion Rate
What to measure. The application completion rate tracks the percentage of candidates who complete your job application process.
Why to measure. In tech recruitment, an overly complicated or lengthy application process can deter candidates. Measuring the completion rate helps determine if potential hires drop out because of unclear instructions, long forms, or irrelevant questions.If the completion rate for software engineering roles is particularly low, it also might suggest that candidates are put off by the coding test required during the initial application. Simplifying this process or shifting it to a later stage could increase the number of qualified candidates who complete the application.
5. Source of Hire
What to measure. Identifies where the best candidates are coming from.
Why to measure. Understanding which platforms or referral sources yield the most successful hires can optimize future recruitment efforts. For tech roles, it’s vital to know whether job boards, recruitment agencies, or internal referrals bring in top talent. If data shows that the majority of quality hires for data scientists come from referrals, it makes sense to invest more in employee referral programs and less in, say, paid advertising.
6. Candidate Experience
What to measure. Ensures a smooth and positive journey for job applicants.
Why to measure. Candidate experience is critical, especially in a competitive market like tech recruitment. A poor experience, such as long waiting times between interviews or a lack of feedback, can harm your employer brand and drive away top talent. If feedback indicates that candidates feel the interview process is unnecessarily long, causing frustration, it’s a sign to streamline the interview stages. This improvement can lead to higher offer acceptance rates.
7. Offer Acceptance Rate
What to measure. Tracks how many job offers are accepted.
Why to measure. This KPI helps assess whether your compensation packages and company culture align with candidate expectations. A low offer acceptance rate in tech recruitment can indicate that competitors are offering more attractive packages, or that your recruitment process lacks transparency. If data shows that only 50% of offers for software engineering positions are accepted, it may point to salary expectations being out of sync with market rates. Adjusting your compensation package or highlighting your company’s unique benefits can help improve this rate.
8. Retention Rate
What to measure. Measures how long new hires stay with the company.
Why to measure. Retention rate is critical for tech roles due to the costs associated with turnover. Tracking this KPI helps ensure that employees are satisfied and that the hiring process selects individuals likely to stay long-term. A low retention rate among IT specialists may indicate issues with onboarding or mismatches in role expectations. Addressing these concerns can lead to better hiring decisions and improved employee retention.
9. First-Year Attrition Rate
What to measure. Identifies how many new hires leave within their first year.
Why to measure. This recruiting KPI is particularly useful in tech roles, where a bad hire can disrupt entire projects. High first-year attrition may signal issues with job expectations, onboarding, or team integration. If many junior developers leave within the first six months, it might indicate that they weren’t adequately prepared for the challenges of the job. Improving the onboarding process and offering more mentorship could help reduce early turnover.
Attention, the Sham Recruiting KPI: Let’s Avoid Useless Metrics
While the recruitment KPIs above are highly useful, some metrics can be misleading or irrelevant, depending on your specific needs. For instance, tracking resume volume (the total number of applications received) without factoring in candidate quality might give a false impression of success. Similarly, social media engagement on job posts doesn’t always correlate with quality hires. Instead of focusing on these vanity metrics, prioritize those that directly impact hiring outcomes.
