Choosing the right staffing metrics (Toughest HR Question)

Look beyond cost per hire, time-to-fill equations
By Yaseen Hemeda
|Canadian HR Reporter|Last Updated: 01/28/2013

Question: What metrics should senior HR professionals use to evaluate the effectiveness of staffing systems?

Answer: Surprisingly, many organizations continue to rely on traditional, transactional staffing metrics that are relatively low-impact, such as cost per hire and time-to-fill. While there may be benefits to these metrics, they are increasingly viewed as ineffective in properly evaluating a staffing system.

Cost per hire, for example, focuses only on the upfront dollars — it does not look at the long-term costs associated with not hiring the most suitable candidate. And the time-to-fill metric does not take into consideration the long-term costs associated with turnover percentages and other recruitment costs that may be incurred from not hiring the right candidate. Both cost per hire and time-to-fill equations can show if an organization is able to find people quickly and cheaply, but not necessarily if the candidates are a good fit.