What is recruitment and selection?
These are activities that reflect the starting point that unites people and companies. The term recruitment and selection defines the set of processes used by companies to fill their jobs. In other words, it is all the methods and activities that companies use to hire and enrich your human capital.
Separating the term into two, recruiting would be the set of techniques to attract new people to the open positions in the company. While selection consists in choosing the ideal profile for the vacancy in question, among the people attracted.
There are companies with less formal and simpler recruitment and selection structures, sometimes even depending on indications. Generally this scenario is seen in SMEs, in which only one or two candidate interviews can occur.
Larger companies tend to have selective processes longer and more structured, with marketing campaigns to attract resumes, profile sorting, Group dynamics e candidate interviews with several hierarchical levels.
As in every process, there is no formula for success. The company must start from a format and, from the analysis of recruitment and selection indicators, learning and iterating to improve processes.
How to create effective recruitment and selection indicators?
Determinants for the company's actions, the recruitment and selection indicators are considered instruments that help the professionals of a company to measure the processes, the programs and the goals of the organization. Indicators such as cost per contract are able to analyze the efficiency of the company in its selective processes.
The recruitment of companies will take place through two processes: external recruitment, which consists of the search of candidates available in the labor market; it's the internal recruitment which consists of filling vacancies with members of the organization itself. This can be a strong motivational factor within a company.
The first step to collecting good recruitment and selection indicators is to understand it as a funnel.
The format of the selective process above is merely illustrative. The important thing is for the company to understand that at every stage of the funnel there is a natural loss. Therefore, to make a hiring, the company should receive many resumes. This visualization, by itself, allows us to imagine efficiency indicators between the stages.
The second step to collect good indicators is to understand that all hiring has a cost. This cost is not limited to the dissemination of the vacancy, but also the organization of the other stages (dynamics, interviews), the purchase of equipment for the new employee and the investment in training and qualifications for him during the experience period.
The last step to collect the best indicators of recruitment and selection is to understand that all hiring is tied to a deadline. The longer a job is open, the worse for the company, because the work connected to that job is not being done.
Let us now mix the three factors cited above to show good examples of recruitment and selection indicators.
Examples of useful recruitment and selection indicators for your business
Cost of hiring
The calculation is simple, just divide the total amount spent in the process by the number of places that were filled. This indicator shows the financial efficiency of a selective process compared to the others. Remembering that a hiring is only done after the experience of the new member of the company.
To reduce costs, in order to achieve a positive indicator, HR can use social networks, job portals and maintain a database of resumes of all the selective processes. Besides that, selective process worksheets are useful for organizing tasks and methods.
Average time to close vacancies
It is important to monitor this indicator periodically, especially when recruitment and selection goes beyond the defined period. This shows that the selection process is not efficient and that the cost of hiring may increase.
Basically, this indicator is calculated by the average time that vacancies stay open, being announced. If this time is too high for certain areas, it means that the company needs to think about new strategies for publicizing their vacancies.
Turnover is an English term used in people management which means "renewal." Specifically in the case of human resources management, however, this renewal turns out to be negative, as it denotes more people abandoning the boat.
In the case of recruitment and selection, the turnover of the trial period. In general terms, how many of the new employees give up or are dismissed in the period of experience, against the number of employees who persist and become effective.
This indicator indicates whether the Human Resources department is able to attract the right employees, who are related to the company culture. Otherwise, problems such as rework, exits due to dissatisfaction and increase in the cost of turnover indicator may arise.
In order to achieve the cost of turnover indicator, it is necessary to account for the expenses with the payment of contractual terminations, including fines and taxes, the replacement of the retired professional, through new selective processes, and, finally, the investment in training and qualification of new contractors.
By dividing this total cost by the number of renewals in the analyzed period, the company will find its cost per rotation. That is, what is the total amount spent by exchange of employees in a certain position.
By analyzing turnover rates, it is possible to assess whether the recruitment and selection process is performed properly.
Indicators of effectiveness of the selection process
Interviews / Resumes Received, Hiring / Interviews and Completed vacancies / Open vacancies are useful indicators to evaluate the effectiveness of the selection process. You can manage and accompany them through a recruitment and selection dashboard worksheet.
Another way to obtain indicators of effectiveness of the selection process is to combine the steps with the costs involved. For example, if a company spends 10 thousand reais in a selective process and achieves a thousand resumes, it spent 10 dollars per acquisition of curriculum. Of course, this indicator does not tell us anything in qualitative terms, but it is a good parameter to know if processes are beginning to flee from reality.
Lastly, recruitment and selection is a critical success factor for ANY company. Therefore, it is fundamental that the Human Resources area analyzes the consolidated indicators at the end of each recruitment to recognize the opportunities to improve the process and make better hires.