Advanced Talent Acquisition Performance Metrics

When customer demand accelerates, talent acquisition and recruiting efforts become crucial for technology services businesses. Some teams have mature talent acquisition (TA) processes, while others can improve systems, processes, and performance metrics to impact business goals.

We’ll describe well-known and alternative TA metrics to help management teams guide their TA investments. Each company can and should adapt metrics to fit their business needs.

Time-to-Fill

This is a key metric that can be defined in multiple ways - e.g., from when a position is approved for hiring to the candidate’s first day at the company.

Activity Index

Creating activity points for TA teams that allow management to have activity visibility per TA professional or TA teams as a whole - e.g., 1 point for candidate calls, 2 points for technical interviews, 4 points for offers, 8 points for accepted offers, etc., with weekly and monthly aggregation.

Skills Coverage Score

Based on the requirements the hiring team has for a specific position, develop an inventory of skills candidates should possess to have as much coverage as possible - e.g., full skills coverage can add up to 100 points, while lesser experience, skills, or other criteria deduct points from the total allowing to compare quality among candidates for a specific opening.

TA Expense Ratio

Understanding the investments in TA and the impact these investments are having on newly derived revenue - e.g., TA operating expenses / new revenue derived from new hirings (assumptions need to be made on the historic TA expense period versus forward-looking revenue numbers)

Conversion Rate

The different stages in a recruiting funnel can help build conversion rates between them, which provide visibility as to efficiency at each stage - e.g., number of offers made / technical interviews, or other conversion metrics.

At Alten Capital we invest in technology services businesses. Please reach out to explore potential partnerships.