The performance of the recruiting function will impact many parts of the organization. Take into consideration these broad impacts by developing a balanced set of metrics to measure the success of a recruiter. Metrics can be developed by considering the various stakeholders impacted across the organization. Stakeholders should include: hiring managers, interviewers, candidates & new hires, other recruiters, and other HR team members. Recognize & reward recruiters based on the scorecard.
- Aligns recruiting activities with organizational needs
- Increases the quality of new hires
- Reduces cost per hire
- Reduces time to hire
- Consider the market conditions when evaluating a recruiter’s performance via the scorecard. For example, a recruiter may be responsible for senior executive level positions, where the cost per hire & time to hire is significantly higher than for junior level jobs. If these market conditions are not taken into account, some recruiters may be unfairly rewarded.
- For larger organizations, the capturing of these metrics would need to be enabled through technology. If certain desired metrics cannot be easily obtained, consider using suitable proxies.
- Number of positions filled
- Recruiting cost per hire’s compensation
- Time to hire vs. Contracted time to hire
- Customer satisfaction survey results
Posted by intellilink on January 28, 2013
Client: Financial Services Institution
Project: HR Effectiveness Assessment
A European financial services firm with approximately 2,500 staff in the US wanted to assess the effectiveness of its Human Resources Department. The firm had grown significantly in recent years and the HR department had been given additional headcount to assist in providing better service to its customers. The organization recognized that its HR department needed to become more strategic but first wanted to assess the current state of the department before making organizational & process changes.
Intellilink undertook an assessment of current operations to determine the effectiveness of the HR department. The study also developed recommendations on headcount reallocation and on how to move towards becoming a more strategic partner with the business. The study consisted of three main tasks: data gathering, analysis, and recommendations.
Data Gathering – The Intellilink team interviewed HR staff to gather information on roles & responsibilities, interactions between the different HR teams, and to get an overview of the staff’s thoughts on the mission of the HR department. Senior HR leadership indicated that the tasks undertaken by HR generalists varied greatly across business lines and even across individual HR generalists supporting the same business line. The team decided to shadow a select number of HR Generalists to track their daily activities. The team also interviewed heads of business line customers to identify their specific HR needs and determine the current level of service received from HR. Intellilink developed a list of typical HR functions and their descriptions to share with the customers to gauge what services they were most interested in receiving. In addition, the Intellilink team worked with the HRIS team, requesting various HR reports that would assist in the analysis by validating (or invalidating) interview or shadowing data.
Analysis – The Intellilink team correlated interview results with the HR Generalist tracking analysis and reports from the HRIS team. Often additional data needed to be gathered (i.e. transaction volume in order to compare level of effort) in order to confirm the findings. The Intellilink team reviewed the analysis with the senior HR leadership team, who concurred with the general findings of the activity analysis. Intellilink then developed a framework of activities undertaken by the HR Generalists. All HR Generalists across the organization were then requested to track their activities against this framework for three weeks. The information was collated and used to expand the activity analysis.
Recommendations - The Intellilink team then developed a number of recommendations. The team recommended that specific headcount be reallocated to the business lines that were not receiving the required level of service. The team also determined that the HR department was operating adequately, but not at the strategic level required by the business. The activity analysis clearly determined that few strategic tasks were being undertaken by the HR Generalists. The team developed a high level roadmap for the organization to begin moving towards this goal and included; a HR skills assessment analysis, a standardization of HR generalist job roles, increased performance management across the HR department, and a quarterly internal customer survey.
Posted by intellilink on October 22, 2012
Track the retention rates of high performing individuals. For those that have remained with the organization longer than the average tenure, determine the managers with whom the individual worked in a predetermined time period, i.e., annual. Recognize & reward those managers.
- Reduces recruiting costs through the increased retention.
- Ensures managers are focusing on developing talent in the organization.
- For high performing individuals, providing opportunities across the organization is important. Yet in many instances, managers wish to keep these individuals in their own group and do not expose the individual to better opportunities that are outside the group. Thus, tracking retention within the organization, rather than in the manager’s group, should encourage managers to allow for mobility.
- In some cases, managers may attempt to “game” the process through inappropriate performance reviews. Consider periodic audits by an independent party.
- Proportion of managers who receive the reward
- Retention of high performing individuals
Posted by intellilink on October 1, 2012
The cost to an organization resulting from a “bad” hire can be significant, not only from increased turnover costs but also from the adverse productivity impact on other employees.
- Improves the quality of new hires.
- Reduces hiring costs through better retention.
- Use the measures as another data point for evaluating potential new hires rather than the exclusive assessment criteria. The measures are merely a correlation between an indicator and performance but not necessarily a predictor.
- Implement a process to periodically reassess and adjust the key indicators.
- Proportion of new hires in each performance rating level vs. proportion of tenured employees in each performance rating level
- Proportion of new hires terminated due to performance reasons within the first year of employment
Posted by intellilink on August 6, 2012