To truly measure the effectiveness of your hiring process, I created Advanced Recruiting Analytics (ARA): a weighted series of measures that reviews the business inputs, recruiting inputs and their performance relative to one another.
Understanding the ARA model starts by revisiting the stages of the interviewing process and how each stage lands between business and recruiting inputs.
A goal of Smartwork is always to understand where you are and how you can be better. Better might be achieving the same output with less input or achieving a better output with the same input.
If an organization is looking to manipulate the hiring process and impact the overall passthrough rate, there are many different levers you can pull. But you need to know what is actually going well — or not going well — in order to ensure you’re fixing the right things.
Without first discovering where your actual limitations are, you risk wasting time, money and effort. You also risk not being able to improve your position at all.
The Advanced Recruiting Analytics model was built on the fact that in order to accurately assess both sides of the coin, business inputs and recruiting inputs must be weighed differently.
ARA is composed of three individual metrics:
TRUE RECRUITING VALUE: How effectively the recruiting inputs are functioning in the interviewing process
TRUE BUSINESS VALUE: How effectively the business inputs are functioning in the interviewing process
RECRUITING/BUSINESS RATIO: How aligned recruiting inputs and business inputs are performing in comparison to one another.
For True Recruiting Value to be calculated, initial outreach to screen & offer extend to offer accept are more heavily weighted. This is because those are the stages where recruiting has much more ability to influence success.
For True Business Value to be calculated, Screen to Offer Extend is king. This is because that is the part of the process where the business truly makes the most impact.
The Recruiting/Business Ratio is the means in which we can quickly assess how aligned or unaligned TRV and TBV are relative to one another.
At the end of the day, these core metrics, along with others which comprise the totality of ARA, give you the understanding to know exactly where improvements need to be made.
Advanced Recruiting Analytics gives your organization the ability to accurately pinpoint and diagnose your hiring bottlenecks — and provide data to make your responsive solution ironclad.