Measuring a company’s success can take many forms and may include an infinite amount of KPIs. We at RemoteMore build the global bridge between remote developers and recruiters. Therefore, we offer our expert advice about how to measure the efficiency and effectiveness of your remote hiring process.
Why is monitoring your hiring process crucial? Glad you asked! Because you can spot not only your strong points but also the weak ones; make the strong ones great and convert the weak ones into opportunities or strengths. What is your average time to hire the right remote employee? Are you efficient in your recruiting process? You get the drill. To measure anything, however, firstly you need to know what it is. Here, we’ll give you several metrics, which you should follow, to see how effective your remote hiring process is.
1. Quality of hires
There are many ways that companies measure the quality of their hires. Currently, there is no widely adopted metric for tracking this in the industry. Some companies measure % of new hires that pass their trial period, or another milestones such as 6 months in the job. Others track how many of the hired candidates fall within some classification such as % of A-players, or simply how many of the hires were mistakes in hindsight. There are also companies that score their hires on a scale such as 1 to 10. In any case, whatever metric you choose for this, having some conscious, repeating process for evaluating this will get you far. Because ultimately, the quality of your hires is the key outcome of your recruiting process.
When you use RemoteMore, you hire from thousands of candidates from all around the world. A strong candidate pipeline is essential for quality hiring (the other challenging ingredient is knowing what you’re looking for). Also, on RemoteMore we have already pre-screened all the candidates, so you are hiring directly from a quality pool of candidates.
2. Recruiting cost per hire
These are the costs related to recruiting someone. It includes costs such as advertising on job boards, various fees, and the time you have spent in recruiting (you may be surprised by the amount of time and, therefore, expenses that are necessary for recruiting one great candidate).
This metric essentially shows where your company’s money is going during the recruiting process. And if you understand your cost structure, you’ll be able to optimize it and ultimately do more with your existing recruiting budget. To calculate your costs, use this simple formula: total recruiting costs/People recruited in the process. Let’s say you spent 10,000$ to hire 4 remote developers. Then your average recruiting cost per hire is 2,500$ (i.e. $10,000/4).
RemoteMore can help you cut your costs and make the hiring of remote developers a much leaner process. First of all, all the candidates are pre-screened, which means you don’t need to do those first-call interviews anymore; you can jump directly to the interviewing substance. Things such as expected salary, English skills are already listed on the candidate profiles. Even better, you can watch the pre-recorded video interviews in the candidate profiles. Unlike with recruiting agencies, with RemoteMore you pay only for a successful hire, which is also a great reason to recruit through RemoteMore.
3. Time to hire
This metric highlights how long it takes for you to hire someone. We all know the struggle to sift through a vast number of applicants, to schedule and reschedule interviews, to do the technical interviews, to do all the interviews actually, and for them to accept the offer you made. And if they don’t? Off to the hamster wheel again, repeating the whole process. This way you lose your recruiting time, and even worse – missed deliverables in your product teams. You need to cut the time to hire, for the tasks at hand not to get out of hand (pun intended).
Yet again, we at RemoteMore have the solution for cutting your time to hire. When the time for hiring remote developers comes, you can simply skip the job postings, dealing with advertising budgets, etc. You can simply contact us or straight up browse among the thousands of pre-screened profiles. If you want to further cut the time of the process, we’ll find the remote developers you need and will propose to you those that are the best fit for your company. Hiring from the EU? Check out our legislation guide about how to do it right.
P.S. Candidates hate long recruiting processes. For technical talents nowadays, anything above 3 weeks from first interview to last interview is not good. Ideally, 1 to 2 weeks recruiting process would give you a competitive advantage. This will allow you to close more of your high-potential hires (instead of losing them to other companies that are faster)!
4. Offer to Acceptance rate
This metric demonstrates how many of the offers you made to the potential employees were actually accepted. To calculate the ratio, divide the number of offers to the candidates who accepted them. If you made 10 offers and only 5 of them were accepted, you had a 50% offer-to-acceptance rate. This means that the offer you made was not good enough. How to combat that? RemoteMore has the answer.
Our company always prescreens the remote developers. And we also assess their ability to start on a new job, their desired salaries, what skillset they offer, etc. Hiring from candidates that are open to job offers helps tremendously. Therefore, we will connect you with candidates, who are not only the best fit for your opening but who will also boost your offer-to-acceptance rate.
It also helps that all the salary expectations are listed in the candidate profiles. This means that you know from the start if you have a compensation match with the candidate. Other than that, we recommend that as a part of your interviewing process, you should be ‘selling’ your company to the candidates.
5. Diversity
Millennials and Gen Z are increasingly looking not for a 9-to-5 job, but one with a clear mission and vision. Oftentimes the diversity of the team is the most crucial aspect for accepting a job offer. Diversity is also an important factor for boosting productivity and cultural acceptance, which in turn leads to enhancing your team’s performance. We’ve already shared our advice for building a multicultural remote team, so when in doubt you can check it out. To measure the results of the diversity of your hiring process, use the following formula: the employees you hired / the goal you have set. For example, you wanted to hire 5 Python developers who are from diverse backgrounds. However, you found only 3, who match your company’s needs. This means that your diversity metric met only 60% (3/5=0.6) of your diversity goal.
RemoteMore is here to help you again. More than 12000 remote developer profiles are registered with us, all pre-screened for quality. This means, that we can help you hire people from all around the globe, so you are truly hiring talent with diverse backgrounds and perspectives.
