In almost all firms there is a need to measure recruitment to find out if the way Human Resources handles manpower is fit for the needs of the organization. It is a sad fact of reality that not all people who are hired will succeed in the job. This has something to do with profiling the right kind of people that will fit the role of job.

To begin with, one must look at the minimum skills requirement of the employees that need to get hired. The issue with many recruiting teams is that they never really bother to filter applicants. They think that as long as the applicant has a similar experience with the job he needs to fill in, he is qualified. This is a mistake that needs to be addressed as it will always turn out that employees who do not pass the minimum skills requirement will not be productive.

How should recruitment effectiveness be measured? There are a lot of ways to do this. Also, the measurement will depend on a certain perspective or standpoint. For the production standpoint, this means that the employee production and product knowledge will be measured against the recruitment and training team. However, if one is coming from the financial aspect of the company, then the measurement of the recruitment effectiveness is yield.

There are three types of yield, so to speak. The first type of yield is the first pass yield. The way this is calculated is simple. Divide the number of people who for hired by the number of people who were interviewed. Example: if there are two hundred people who got interviewed and only 50 were hired, the first pass yield is equivalent to 25%. The second pass yield is calculated by the number of people who passed a second test by the number of the people who passed the first test. And the last kind of yield is the RTY or roll through put yield. This is equivalent to the first pass yield percentage multiplied by the second pass yield percentage multiplied by the third process. This is part of measuring process capability.

There are other metrics to measure the performance of a recruitment team. One of these is the cost-per-hire. This is measured by dividing the total recruiting costs by the number of positions filled. Another is through new hire quality. This is the performance appraisal of the employee on his first 90-180 days in the operations that includes training time. This is the ideal period to see if the trainees are good enough to pass the probationary period and then move on to employee regularization.

Keep on mind that to measure recruitment is not only about reducing costs but it also helps create a standard or a basis on what kind of employee to hire. This aligns the HR team to the needs of the operations team. This means the higher the standard is, or the more the new hires meet the standard, the better operation will be.