Caveats of Calculating Recruiting Metrics | Quality vs Speed

03 Oct Caveats of Calculating Recruiting Metrics | Quality vs Speed

Recently, we talked about recruiting metrics and agencies can utilize them to improve their talent acquisition process. This week, we will be taking a look at how these recruiting metrics might not be enough, and considering a few caveats to the specific metrics we mentioned in our last post.

According to Denai Kadzere (, the Time to Fill and Cost per Hire metrics are intrinsically flawed. Kadzere writes:

Cost per hire tracks how expensive the recruiting process is per position, but fails to account for the differences in difficulty to fill across different types of positions, efficiency of the recruiting process, and quality of hire. “Marshaling the resources that are required to produce quality hires is almost always expensive” says Dr. Sullivan, CEO of DJS. “To put it bluntly, you get what you pay for.” Neglecting to account for the long-term costs of poor hiring decisions is a big mistake in developing a recruiting strategy. If you are filling positions cheaply but with low quality hires, your total costs may be much higher than if you had invested more per hire, but made better hires.

Following the same logic, Kadzere writes that time to fill also neglects the quality of hire metric by holding recruiters to the same speed standard for all positions. Focusing too narrowly on a speedy, inexpensive hire can potentially cause recruiters to neglect passive candidates who may be more suited for the company or position.

While no one would argue that these two metrics are by no means insignificant, opinions like Kadzere’s urge us to consider the metrics in context, and to apply them within two advanced metrics: efficiency ratio and quality of hire. According to Kadzere, an efficiency ratio is calculated by dividing the total cost of hire, spent both internally and externally, by the compensation of the position recruited. Applying this ratio allows an agency to account for the longer process of hiring higher paid candidates, and also for the supply and demand of all candidates. Quality of hire accounts for the longevity of an employee within a position, how well the employee fits in with the company’s culture, as well as the damage incurred by overly-long hiring processes.

What other factors can complicate recruiting metrics? Does your company utilize metrics such as Quality of Hire and Ratio of Efficiency? Join the conversation! Join the conversation. Tag your post with #AccuroTalks and let us know what you think!

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