Focus on talent and performance metrics is redefining recruitment success
Low volume of data, accuracy of metrics, and alignment with business outcomes were specifically highlighted as problem areas by businesses monitoring performance metrics, with satisfaction levels reaching 49 percent, 52 percent and 41 percent respectively.
While the findings emphasized the need for RPO vendors to go above and beyond to satisfy clients, the report warned of the importance of mastering basic analytics first and foremost. Good metrics go hand in hand with good RPO and achieving this pointed to the promise of a successful long-lasting partnership between the RPO provider and client. The findings also highlighted that given the rapid changes in the sourcing and technology space in the recruiting industry, organizations need to partner with providers that can provide innovation to address ongoing continuous improvements.
Other key findings for understanding how metrics are used revealed:
& lsquo;Time-to-hire’ is an almost universal key performance indicator (KPI), with 87 percent of business using it
& lsquo;Source of hire’ was voted the most useful KPI for evaluating RPO effectiveness at 75 percent
More than half (57 percent) of those not satisfied with their metrics complained the data does not link with other systems
& lsquo;Increased quality of candidate pool’ was the most desired metric businesses are not currently capturing at 44 percent
The report revealed five recommendations to get the most out of metrics:
1. A clear understanding of how HR aligns with business objectives is essential – So decisions can be made in-line with the relevant metrics
2. A systematic approach must be taken, regardless of what metrics are employed – Client and their RPO providers must ask, why measure it, what value it provides and how much emphasis should be placed on the results
3. Creating a single integrated information system is key – Data and input from the RPO should exist within an online dashboard, integrated with the client’s Applicant Tracking System, and data should be presented in a way that is meaningful for decision making
4. Continuous innovation and improvement is imperative – RPO must offer value on the information and insight that metrics provide so satisfaction levels do not decrease over time
5. Trust is crucial to success – The quality of the relationship between client and provider and the extent to which sensitive data is shared and examined will determine a true partnership
Elliot Clark, CEO of HRO Today, added: “It’s clear from this report there is still some work to do when it comes to analytics. Continuous innovation and trust will make for an improved relationship, enabling success over a sustained period of time, but companies and RPO providers need to align metrics with business objectives from the offset to gather truly valuable data.”
Jeanne MacDonald, president, Global Talent Solutions at Futurestep, commented: “The whole point of metrics is to enable better decision-making, but the benefits of a true partnership can be felt beyond the realm of data. The real key to long-term satisfaction is ensuring clients have a well-rounded talent acquisition strategy that helps them not only find the best talent but also nurture it for future growth.”