Recruitment isn’t just about filling roles—it’s about optimizing efficiency, reducing costs, and improving candidate experience. But without tracking the right metrics, HR teams risk wasting budget, missing bottlenecks, and hiring mismatched talent.
This guide breaks down the most critical recruitment KPIs, how to measure them, and actionable insights to improve hiring performance.
Why Recruitment Metrics Matter
✅ Reduce time-to-hire by identifying process inefficiencies
✅ Lower cost-per-hire by optimizing sourcing channels
✅ Improve quality of hire with data-backed decisions
✅ Enhance candidate experience to boost employer branding
1. Time-to-Hire (TTH)
What it measures:
- The average number of days from a candidate’s application to job acceptance.
Why it matters:
- Long TTH = losing top candidates to competitors
- Ideal benchmark: 10-15 days for mid-level roles
How to improve:
✔ Automate screening with AI resume parsing
✔ Reduce interview rounds (e.g., structured 2-stage interviews)
2. Cost-per-Hire (CPH)
Formula:
text
(Internal Recruiting Costs + External Costs) / Number of Hires
What to include:
- Job ads, recruiter salaries, agency fees, ATS costs
Benchmark:
- $4,000+ for tech roles | $1,500–$3,000 for non-tech
How to reduce CPH:
✔ Leverage employee referrals (cheaper than agencies)
✔ Optimize job ad spend (track which platforms yield best ROI)
3. Quality of Hire (QoH)
How to measure:
- Performance reviews (e.g., 90-day success rate)
- Retention rates (e.g., % still employed after 1 year)
- Manager satisfaction surveys
Why it’s critical:
- A bad hire can cost up to 30% of the employee’s salary (US DoL)
Improvement strategies:
✔ Refine interview scorecards to align with role success factors
✔ Use pre-hire assessments (e.g., cognitive or skills tests)
4. Source of Hire (SoH)
What it tracks:
- Which channels (LinkedIn, referrals, job boards) deliver the best candidates.
Example findings:
- Employee referrals = Highest retention
- Indeed = Most applicants but lower conversion
Actionable tip:
✔ Allocate budget to high-performing sources
5. Candidate Drop-Off Rate
What it measures:
- % of candidates abandoning the hiring process (e.g., after a lengthy application).
Common causes:
- Too many interview rounds
- Poor communication delays
Fix:
✔ Implement 1-click apply options
✔ Send automated status updates
6. Offer Acceptance Rate (OAR)
Formula:
text
(Number of Accepted Offers / Number of Offers Sent) x 100
Low OAR signals:
- Uncompetitive compensation
- Poor candidate experience
How to improve:
✔ Conduct pre-offer calls to gauge interest
✔ Benchmark salaries with Payscale or Radford data
7. Application Completion Rate
Why it matters:
- If 70% of candidates abandon your application, your process is too complex.
Solutions:
✔ Mobile-optimized application forms
✔ Progress indicators (e.g., “Step 2 of 3”)
8. Diversity Hiring Metrics
Track:
- % of underrepresented candidates in pipeline vs. hires
- Demographic data (voluntary disclosure)
Goal:
- Ensure fair hiring practices and broaden talent pools
9. Candidate Net Promoter Score (NPS)
How to measure:
- Post-interview survey: “On a scale of 0-10, how likely are you to refer others to apply here?”
What it reveals:
- Negative NPS = Poor interview experience
- High NPS = Strong employer brand
10. Recruitment Funnel Conversion Rates
Example stages & benchmarks:
| Stage | Strong Conversion Rate |
|---|---|
| Application → Screen | 50-70% |
| Screen → Interview | 30-50% |
| Interview → Offer | 20-30% |
| Offer → Hire | 70-90% |
Low conversion? Fix bottlenecks (e.g., unrealistic job requirements).
Key Takeaways
✔ Time-to-Hire & Cost-per-Hire = Efficiency
✔ Quality of Hire & Retention = Long-term success
✔ Diversity & Candidate NPS = Employer brand health
Which metric will you prioritize? Let us know in the comments!
