5 Ways to Decrease Recruitment Costs
5 Ways To...
A 1 percent increase in a hospital's overall retention rate could save the organization as much as $1 million, depending on the size of the organization. Here are five recruitment metrics every hospital should track to reduce costs, enhance efficiency, and protect revenue.
Time to fill. Extended time to fill often stems from a lack of clarity from an organization's hiring managers. Lingering positions lead to lost productivity-and a loss of revenue. If this measure is too high, the next step should be to identify where the hurdles are in the organization and why they exist. For example, subcycle times, such as accepted offer-to-start date time, should be reviewed to determine whether a lag in an organization's hiring process may be causing the organization to lose quality candidates. A clear process and timeline should be established for using the data the hospital is collecting to make intelligent decisions about how to monitor the process better and use resources in the most efficient way.
Interview-to-offer ratio and hiring-manager investment. The interview-to-offer ratio measures the total number of candidates that each hiring manager sees before he or she is comfortable making the final decision to hire. This metric should be tracked by job category, recruiter, and hiring manager. The fewer interviews a hiring manager has to perform, the better the return on the manager's time and the recruitment effort.
Retention rate. If the organization's overall retention rate is less than 90 percent in the first 90 days, it is important to review the screening and interviewing process that was applied, the team's understanding of the skills required for the role, and how the role is being communicated to the new hire. Engaged new hires reach productivity goals faster and remain more productive over their tenure with an organization-which also leads to greater employer loyalty and longer retention. To provide a comprehensive view into the entire recruitment and onboarding experience, surveys should be administered to new hires on the first day of work and at 90 days on the job.
Hiring manager satisfaction and quality of hire. The greatest contributor to a hiring manager's dissatisfaction is a scarcity of candidates submitted in a delayed fashion. A recruitment team that understands the requirements and has a vast pool of candidates will foster satisfaction. Instituting a real-time, anonymous survey at the time of hire is an effective way to capture the hiring manager's perception of the process and determine whether the recruitment team is meeting expectations.
Cost per vacancy versus cost per hire. The cost of a vacancy can include premium labor costs as the position remains unfilled, overtime costs, and loss of revenue from unfilled revenue-generating positions. With the data related to this metric in hand, organizations can work toward developing a talent acquisition process that improves the quality of the candidates that hiring managers are interviewing and bringing into the organization.
Mike Soisson is senior vice president and practice leader, Pinstripe, Inc., Mechanicsburg, Penn. (firstname.lastname@example.org).
Publication Date: Friday, June 01, 2012