Recruiting & Hiring Staffing Ratio

Recruiting & Hiring Staffing Ratio

KPI Details

Recruiting & Hiring Staffing Ratio measures the number of employees within the recruiting and hiring function relative to the total number of employees working for the organization at the same point in time. While a relatively high value is typically sought after for this metric, the quality and efficiency of recruiting and hiring processes must also be taken into account. Attracting and retaining high quality talent it vital to the success of nearly any business, therefore recruiting and hiring employees typically comprise a relatively large portion of the total HR Department headcount, particularly in industries that rely highly-skilled knowledge workers to gain a competitive advantage (e.g., financial services, high-tech, pharmaceuticals, etc.). There are, however, many factors that can increase the overall cost and headcount of the recruiting and hiring function, including high turnover rates, low employee satisfaction, unproductive recruiting staff, cumbersome screening processes, and inefficient use of third-party recruiting channels (e.g., poorly allocated spending on job postings, third-party vendors, etc.). Companies experiencing high growth may also have a relatively large number of recruiting and hiring employees, thus driving the number for this metric down.

KPI Definition

The number of company-wide employees divided by the total number of recruiting and hiring employees working for the company at the same point in time. Recruiting and hiring employees are those responsible for attracting, screening and onboarding new employees.

KPI Best Practices

• Effective utilization of third-party recruiters and headhunters
• Promote employees from within the company
• Periodic reviews of staffing levels compared to growth/decline of work volumes

KPI Calculation Instructions Recruiting & Hiring Staffing Ratio?

Two values are used to calculate this KPI: (1) the total number of recruiting and hiring employees, and (2) the total number of companywide employees working for the organization at the same point in time. Recruiting and hiring employees should include all staff members responsible for attracting, screening and onboarding new employees for the organization. Their day-to-day job duties typically include developing and posting job requisitions, monitoring spend on job requisition advertising, managing any third-party recruiting vendors, tracking (and reporting) the position of potential new hires within the hiring funnel, arranging travel arrangements for job candidates, and performing initial interviews with potential new hires, among other various tasks. Thirdparty recruiters or headhunters should not be included in the numerator for this calculation.

KPI Formula :

Total Number of Employees / Number of Recruiting & Hiring Employees