Cost Per Hire: What It Means for the Business

What is cost per hire?

Why is it important to track?

How can you measure it?

Why is it important to your team?

The Basics of Cost Per Hire

Cost per hire is the average amount of money you spent on making a hire. Focusing on it helps your team to make sure that they are appropriately allocating financial resources.

Cost per hire is an exceptionally common metric for recruiting teams to track so it’s likely your team is already tracking it. Even if you are already tracking it, now is a good time to ensure that you’re tracking all costs effectively.

Why Is It Important to Track?

In this COVID world, everyone is trying to save dollars wherever they can. In fact, major companies, like Google, have been aiming at cutting their marketing and recruiting budgets by up to 50%.

Tracking shows where dollars are being spent and where they can be optimized. In addition, focusing on this metric helps recruiting teams to see the bottom-line impact that they have on a company’s financial health.

How to Measure

The formula is fairly simple. All you need to do is add all of your external recruiting costs and your internal recruiting costs and then divide the sum by the number of total hires for any given period of time.

Formula for cost per hire measurement: external recruiting costs plus internal recruiting costs divided by total number of hires

External recruiting costs are line items like staffing agencies, job board costs, etc. While internal recruiting costs are line items like technology costs, recruiting staff salaries, interview costs, etc.


Tracking cost per hire allows your recruiting teams to make sure that they’re optimizing their tools and work processes with budget in mind! 

Want to talk more about cost per hire and how to implement new and useful metrics in your recruiting strategy? Get in touch!

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Why We Only Work With Your Internal Data

Here at HiringSolved, we love internal data. We love normalized, clean, and actionable data that helps recruiters do their jobs better. If you’re a recruiting team leader, you’re probably the same way.

Our History with Internal Data

HiringSolved was built by recruiters, for recruiters. Before creating HiringSolved, we found ourselves missing the data that we needed and running into major roadblocks accessing the data that was locked in our ATSs and CRMs.

In 2014, we launched PROPHET, a Chrome extension that combed the open web for the other profiles and contact information. In 2019, we launched PROPHET II, an updated version of PROPHET that created a more fully-functional sourcing platform.

Then we made the decision to sunset PROPHET II. As we moved forward with optimizing our aggregator, we realized that it was in conflict with what our values are. “Today, with the changes in the law, privacy concerns, easy availability of mass amounts of PII, and the expectations of users, we are announcing that we are moving in a different direction. We believe the aggregator market is now a race to the bottom. Instead of following that path, we will innovate and change the game.”

After making that choice, we focused entirely on utilizing internal data.

The Power of Internal Data

Most recruiting teams have spent years building up their candidate databases and those databases are gold mines. 

HiringSolved provides the mining tools that recruiting teams need to tap into those gold mines.

Saving Time

For many recruiting teams, internal data is the only data that is complete. External data (like social profiles) can be a great addition to your sourcing and recruiting strategy, but they also hold a lot of privacy and time suck landmines.

HiringSolved gives your team the searching capabilities they need to be successful. Learn how AECOM tripled their search speeds using HiringSolved here:

Saving Money

Outside of the old adage, “Time is money,” utilizing your internal data can actually help you save actual dollars. 

We broke down the cost of adding a candidate to your database here, but the fact of the matter is that when you already have qualified candidates in your database there’s no reason for you to hunt down those candidates again.

By utilizing your internal data, we know that you are immediately dealing with better quality data. If a candidate is in your internal database, they are already invested in your employer brand. They have shown an interest in your company and have already interacted in some way with the recruiting team.

By utilizing your internal data you can expect to see higher open and response rates to your communications, like Lowe’s saw when they started using HiringSolved

On top of the higher quality of the data itself, you can feel certain that your data is compliant and secure.

There is always space for external data and candidate searching in your recruiting strategies, but we believe that having quality and actionable internal data is the most important first step you can take.

If you’re ready to take that first step, schedule a demo with us and we can show you how HiringSolved will transform the way you recruit.

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Diversity, Equity, and Inclusion: What Does That Mean?

Do you know the difference between diversity, equity, and inclusion or are you just using DE&I as a buzzword?

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The Current State of Diversity Recruiting

We recently surveyed 150 organizations to learn about the current state of diversity recruiting. After running the survey, we compiled the full results in a recent report that you can download:

The Key Takeaways include:

Graphic showing key takeaways from diversity recruiting survey:

Over 60% of organizations have barely started implementing diversity recruiting initiatives.

Less than 4% of organizations have thorough and detailed diversity recruiting metrics that are actively tracked.

Diverse teams are consistently proven to be the most effective teams in the workforce.

Building the right diversity recruiting strategy involves: auditing your current position, defining your goals, assigning roles and action items, measuring data and performance, and iterating as needed.

The Terms You Need to Know: Diversity, Equity, and Inclusion

Terms often have both a denotation and a connotation. Denotations are the agreed-upon definitions that reside in an impartial resource like a dictionary while connotations are the feelings or associations with that word. When you’re learning how best to utilize new terms, it’s important to know both the denotation and the connotation.

Diversity

Denotation: Diversity is the practice or quality of including or involving people from a range of different social and ethnic backgrounds and of different genders, sexual orientations, etc. (OED)

Connotation: Ultimately, diversity means difference. Embracing diversity at work means embracing people from different backgrounds (racial, gender, education, skills, etc.). It’s important when you’re beginning your diversity recruiting journey to define what is diverse within your team. If you’re a team of 10 men, it’s time to include some women and non-binary employees. If every person at your company has a Master’s degree, how about reaching out to people who have GEDs or community college credentials?

Equity

Denotation: Equity is the quality of being fair and impartial. (OED)

Connotation: In regards to diversity recruiting, “equity” means proportional representation. Equitable treatment at work gives people whatever support they need given their specific needs, rather than giving the exact same treatment to all people. Inclusion

Inclusion

Denotation: Inclusion is the act of being included within a group or structure. (OED)

Connotation: Inclusion’s connotation is very similar to the denotation since the connotation is the act of inviting people into the conversation and the room. 

Misconceptions to Avoid

Thinking “Diversity” Only Means Racial Diversity

Remember that diversity covers a whole slew of differences amongst people. If you want to talk about racial diversity, then use the term racial diversity. If you want to talk about gender diversity, then use the term gender diversity. Like Inc. mentioned, “…you may not feel comfortable talking about the people missing from your organization and defining them by ethnicity, orientation or background. However, it’s important to discuss it in those terms to address the real need to hire more women, veterans, people with physical and mental challenges, and ethnically diverse individuals who have the talent and skills your organization seeks.”

Mixing Up Equity and Equality

Equity and equality are often used interchangeably. In reality, they are two distinctly different ideas. Equality is treating everyone exactly the same and giving access to the same opportunities. Equity means creating proportional representation to those opportunities. (Source)

For example, an employee on your team needs screen-reading software. While you provide it to them, you don’t provide it to the employees who don’t need it. That’s equitable treatment. Equal treatment would be providing that software regardless of need.

Mixing Up Inclusion and Belonging

Belonging takes inclusion a step further. If inclusion is being invited to the table, then belonging is feeling comfortable enough to speak up when you’re at your seat. Contrary to popular belief, having an inclusive environment doesn’t immediately mean that people feel as if they belong.


For many people starting their diversity recruiting journey, it can feel complicated and overwhelming, but if you take the time to educate yourself and learn from your mistakes you’re sure to become a changemaker in no time!

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How “The Social Dilemma” Could Change Social Recruiting

Have you watched The Social Dilemma? What do you think it means for social recruiting?

What is “The Social Dilemma”?

This documentary pulls together interviews with some of social media’s innovators to explore what social media is doing to users. For many viewers, it was also a call to action to rethink how they use social media.

In general, the documentary suggests that people work harder to understand the effect that social media has on them. But some people took it a step further and have begun to delete their social media profiles.

The documentary clearly focuses on the dark and downside of social media. Despite a brief mention of the positive aspects at the start of the movie (families reconnecting, friends staying in touch with each other, etc.), the story revolves around the ways that social media is affecting our self-worth, attention span, and our real world culture.

Through talking head interviews and dramatized segments of a family dealing with the negative effects of social media addiction, The Social Dilemma attempts to dive into the ways that social sites contribute to the mental health issues that our younger generation is facing and the barrel of the disinformation gun we’re all staring down.

The Effect

If you’ve been working in social media or have been using it for a while, there have probably been times where you’ve felt less than pleased with the amount of time you spend scrolling Facebook or falling into a YouTube rabbit hole.

Many people have been wary of social media for years, but The Social Dilemma brings the credibility of the creators themselves. After all, if the co-creator of the Facebook Like button is saying, “Maybe this wasn’t the best idea…” you’re going to pay attention.

While there’s no way to know how many people will delete their social media, people have begun to question what role social media will play in their life.

How Social Recruiting Could Change

Social recruiting is a major aspect of most recruiting strategies. According to The Muse, “92% of companies are using social media for hiring.”

So what could The Social Dilemma mean for social recruiting?

In all honesty, probably not much. While The Social Dilemma is prompting social media users to be more discerning, it’s unlikely that there will be a mass exodus from social media. It does mean that there is a likelihood that users will be more cautious about their data and information.

As a recruiter, you can preempt those fears by not getting too personal when you reach out to candidates. Even if you can find really, really specific information about a candidate, keep it top-level to avoid concerning anyone.

Now is also a good time to consider how you can supplement your social recruiting efforts with your internal data.

Benefits of Using Internal Candidate Data

Any recruiter will say that social media is a great way to find new candidates when your internal database is lacking, but it’s important to know whether your internal data is really lacking first.

Your internal database is likely filled with tons of candidates who have expressed an interest in your company and employer brand. Utilizing that database effectively is easily going to save you time and money.


The Social Dilemma likely isn’t going to cause social media companies to drastically change their ways. In fact, Facebook already shared what the documentary got “wrong”. (Take that document with a grain of salt.) But it is informing users about the dangers of using social media too much. Expect people to still be around on social media, but be understanding if they don’t get back to you immediately. Always remember that even if you can’t find that perfect candidate on Twitter, that doesn’t mean they don’t exist…it just means the search has to continue in other places.

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Resume Match: What It Is and How It Works

“I just want to find 5 more people who are as good as this one.”

How many times have you found yourself saying that as you’re sourcing?

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Sourcing Challenges

Finding the right candidates for an open position is one of the most difficult steps in the recruiting process. There are often thousands of people, if not more, who qualify for a position so it comes down to the sourcing process to separate the qualified from the right fit.

It’s not uncommon for hiring managers to point to the star players on the team to model the requisition after. Whether it’s their work experience that is impressive or their attitude, hiring managers rely on their existing teams to set the foundation for where their team will go.

What is Resume Match?

HiringSolved’s Resume Match was created particularly for the times when you have a star team member that you want to use as the start of your search. All you have to do is drag-and-drop their resume into the search screen and HiringSolved will automatically find similar candidates within your internal data.

GIF of Resume Match feature

Resume Match helps your sourcing process go from hours to seconds. 

BONUS: You can upload more than just a resume! You can even upload the job description and let HiringSolved handle creating the perfect search for you automatically.

How To Know if Resume Match Is the Right Tool for You

Do you want to cut back on the time you spend sourcing but achieve better results?

Are you in need of a tool who helps you create the right search?

Do you want to fill your team with similar candidates to the star players?

Then Resume Match is right for you. 

We created Resume Match to help sourcers and recruiters save time searching so they can spend those hours building relationships with their candidates.

What would you do with ⅓ of your work week back?

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Hitting Your Training Goals Faster with HiringSolved

How do your teams reach their training goals?

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For many companies, training is an unfortunate necessity. It would be wonderful to be able to set new employees loose and have them return incredible results, but thorough training is the best way to provide the support that employees need to be successful.

In fact, Business Insider recently reported, “A new survey found a third of employees who quit their jobs did so because they didn’t learn new skills or better performance.” But how can you as a leader provide that training and support while still hitting goals? Let’s talk it over!

Non-Intuitive Technology: What Problems Does It Pose

In the technology world, there are two words that pop up a lot: intuitive and non-intuitive. Intuitive technology is technology or software that has a friendly interface and is easy-to-use to even the most inexperienced person. Non-intuitive (or sometimes unintuitive) technology is the exact opposite. Google is a good example of intuitive technology with its simple search interface that most people can pick up automatically, whereas something like an ATS or CRM is an example of a non-intuitive technology.

There is a place for both intuitive and non-intuitive technologies in your tech stack. After all, there’s nothing wrong with using tech that works that requires a little more training to utilize. But if you’re aiming to train your employees quickly, intuitive technology will give you that result quicker.

Non-intuitive technology often takes a long time to train on and an exponentially longer time to become an expert in. It can also pose a problem when it comes to creating standardized work processes as a lot of users will begin to create their own shortcuts to work through the system effectively.

What We Created To Help You Achieve Your Training Goals

HiringSolved was created by recruiters, for recruiters. We come from a background of being frustrated with non-intuitive technologies slowing down or blocking the recruiting process. So we got together with some of the best software engineers out there to create a solution. HiringSolved pulls together non-intuitive technologies and makes them significantly more actionable and easy-to-use.

Our goal has always been to create a product that takes very little time and effort to get people using it.

How We Help Teams Hit Their Training Goals Faster

While training and learning is a critical part of success, we don’t want teams to be stuck in the phase for long. We want our tools to be easy to understand, easy to implement and begin to prove their worth quickly.

Unified Search

One of the most important features we implemented was our unified search capabilities. HiringSolved is able to gather all of your existing candidate data and gives your team the power to search through every single profile using one interface. Gone are the days of bouncing around to different tools! We created Guided Search, Expert Search, and our Resume Match so users can search in any way that they prefer. Guided Search utilizes defined keywords, Expert Search allows users to copy in Boolean strings, and Resume Match lets users drag and drop in a successful resume to find similar candidates.

USER TIP: You can also drag and drop a job description to find qualified candidates in seconds.

Easy-To-Use Interface

Our Engineering and Product team is dedicated to creating simple to understand tools that anyone can login and use. 

We work tirelessly to perfect the workflow throughout our software so that everything is clear on the user’s end. We believe that every user should be able to easily understand what steps they need to follow to be successful.

This easy-to-use interface is made up of features like labels, real-time analytics updates, and suggested searches.

Image of HiringSolved search screen

Customer Support and Success

Even with our easy-to-use interface and simplified search abilities, training is still important! We will work with your team every step of the way to make sure they can use HiringSolved quickly and easily…enabling you to hit your training goals faster and easier than ever before.

We provide training calls for your entire team to learn together and we are always available to provide support to individual team members. We’ve even recently implemented in-app training guides to help train users in their own time.


Ultimately, we want to see recruiting teams implement tools that are easy to use so they can hit their hiring goals faster!

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4 Ways to Boost Productivity…While Taking Care of Yourself

Most of us are six months into a lockdown period that many didn’t expect to last half this long. Many employees are still finding their footing when it comes to working from home and many are looking for ways to boost productivity.

Here’s the thing: We’re all facing an incredible amount of stress and fear. While productivity shouldn’t be on the top of the list that you’re worried about, many people are. We’ve put together some simple ways that you can see a boost in productivity while still giving yourself the space to care about your health and wellbeing.

Take a Break…Seriously

First things first: You are doing a great job. Even if you’re not as productive as you normally are and even if you’re feeling behind and overwhelmed, remember that you are working in a very difficult situation right now and you’re doing your best.

Give yourself the slack to take a break. For a vast majority of people taking appropriate breaks actually leads to being more productive.

Whether that break is an actual vacation or whether it’s making sure you take breaks throughout the day, you’ll often feel better when you step away. Schedule your lunch breaks (or any other breaks) like you would any other meeting on your calendar so your team knows that you’re unavailable.

Team Leaders: Remember to be gentle with your employees. They’re facing a difficult time just like you are. Providing some extra compassion while we all get through this will result in happier and more productive employees. (Remember to cut yourself some slack too!)

Increase Automation Wherever Possible

When you’re trying to boost productivity, you need to focus on not spending time where it’s not needed. Bring automation into your workday to help you focus your priorities accordingly.

Letting automation take over interview scheduling is an easy way to implement this new feature into your life. You can also let automation handle out of office messages for those times you’re taking the breaks we just spoke about!

Setting up an automatic newsletter to the candidates sitting in your pipeline is also a great way to make sure they know that they’re still at the front of your mind.

If you want to bring automation into the recruiting process, we’re here to help.

Team Leaders: Make sure that you’re talking with your teams about what sort of automation tools could help them prioritize their workday!

Utilize Time Management Rules

Whether you go the time-blocking method or if you just make a general to-do list for the day, managing your time is critical to being productive. One of the best things you can do is find the time in the day when you feel most naturally productive and then prioritize your tasks within that time. If you’re a morning person, take care of your most intensive tasks at that time and move anything less important to the afternoon.

Prioritizing your tasks equates to the effective usage of not just your time, but of your energy as well.

This would also be a great place for us to point out that it’s wonderful to be able to minimize distractions, but let’s be real: distractions abound at this time. Whether it’s your kids needing help with their distance learning or your dog not understanding that it’s not playtime, be flexible. Distractions will happen. It’s all about letting yourself bounce back into work when you can.

Team Leaders: If you can, avoid being a distraction to your employees. Schedule standard check-in times so that employees are able to focus on what they need to do rather than being pulled into random meetings and calls. This will help them schedule their days and get the work done that they need to.

Find an Accountability Partner

Find someone you can rely on to hold you accountable!

While you could absolutely choose someone at your company, it’s not a bad idea to rely on a friend outside of your company to allow you to get an unbiased view of what you need to get done. An outsider opinion can help you gain some much-needed perspective when you’re feeling overwhelmed and you won’t run into issues of having to censor yourself during difficult times.

Accountability partners can help you build and track goals, share their own experiences to help you avoid mistakes, be there as a listening ear on the hard days, and more. You can also help to provide these things to them!

Team Leaders: Support your teams reaching out to friends by providing time for them to do exactly that. Provide time off when they need it for a long lunch with friends and emphasis the importance of building a support group.

The most important thing to constantly remind yourself of is that we’re facing something completely unknown. While it can be hard to be understanding when you don’t get as much done as you need, you need to care about yourself as a person first and foremost. The more you care for yourself, the more care you can bring into your work. Take care of yourself and it won’t take long for a boost in productivity to follow!

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Building the Right Diversity Recruiting Strategy

Does your team have a diversity recruiting strategy? If your answer isn’t a resounding “Yes!” then we have the steps that you need to take today to get up to speed.

What is a Diversity Recruiting Strategy?

A Diversity Recruiting Strategy is a focused attempt to increase diversity at a company. It defines goals, action items, the people responsible, and more. It is also responsible for tracking successes and failures so that your team can consistently grow and learn.

Remember: Diversity isn’t the endpoint of building an inclusive company and culture. It’s a step on a long journey. Ultimately, focusing on diversity recruiting will allow you to build an inclusive and equitable team that fosters belonging.

Why Should You Have One?

It’s simple: Decisions made without data and goals aren’t decisions, they’re guesses. By building a diversity recruiting strategy that everyone on the team can see, understand, and be held accountable for, you’re going to see results.

The most important part of any diversity recruitment strategy is the investment of time and effort. By creating a strategy, you’re taking the first step to making your values and your company culture clear. You want to build the right team and that right team is diverse and inclusive!

How to Build the Right Diversity Recruiting Strategy

Learn Where You Are

The first step for building any strategy is analyzing what you’re currently doing. This is a time to be blunt and honest even when it hurts. It’s highly likely that you’ll find out that you and your team aren’t doing enough to be successful. That doesn’t mean you should shy away from the truth.

This is an excellent time to bring in conversations and consultants. Ask your team how they feel you are doing when it comes to diversity recruiting. Do your existing team members feel like the company is inclusive? Do they feel like they belong? If you hear from even one person that they don’t feel psychologically safe, then you have work to do. Remember that some team members will feel uncomfortable being honest (especially if they don’t feel safe to do so), so conducting these surveys anonymously may help.

You can also use tools like our Diversity Recruiting Scorecard to help start the process.

Define Your Goals

We’ve said it before and we’ll say it again: If you don’t know what you’re working towards, you’re going to get lost. Your goals likely won’t look like another team’s because diversity means something different for every team. Bringing in an expert consultant to help you define your particular goals is an excellent way to make sure they stick.

Diversity recruiting goals can include things like:

  • Define what diversity means to our team
  • Increase diverse candidates by 50% in our pipelines
  • Grow diverse hires by 60%
  • Increase promotion of diverse team members to leadership roles by 20%

All of these goals rely on knowing what your starting line is so make sure you don’t skip that step!

Define Roles and Action Items

Have you heard about the bystander effect? Psychologists Bibb Latané and John Darley “attributed the bystander effect to two factors: diffusion of responsibility and social influence. The perceived diffusion of responsibility means that the more onlookers there are, the less personal responsibility individuals will feel to take action. Social influence means that individuals monitor the behavior of those around them to determine how to act.”

This effect doesn’t just apply to emergency situations. In fact, the same theory can apply to actions items at work. When you’re making strides towards perfecting something like your diversity recruiting strategy, you need to define distinct roles and actions items to particular people. This will create a system of accountability that significantly increases your chances of success.

When you decide who is going to play a part in this initiative, define the roles that everyone will play and break down action items and assign them to specific roles/people.

Measure Data

Making decisions without data results in unstable decisions. When you’ve defined your goals, you can break down those goals into KPIs that help you measure the right data.

Measuring data may feel like a lot of work for a minor ROI, but that’s just not the case! With the right tools, you’ll be able to easily gather the data and adjust as you need.

Some of the data you can measure includes:

  • Are diverse candidates being sourced?
  • How many diverse candidates are interviewed?
  • How many diverse candidates make it through multiple interviews?
  • Where are diverse candidates are lost in the hiring process?
    • Are they dispositioned by the hiring manager or do they remove themselves? Why?

Adjust and Iterate

Diversity recruiting is an ever-changing process and even if you think you’ve hit the nail on the head it never hurts to keep adjusting and testing new theories. By constantly striving to be better you’ll also create a space that gives people permission to do the same personally. Successful teams are the ones that are always ready to learn and grow together, but it’s the role of team leaders to cultivate that culture.

The Harvard Business Review about how to create cultures of learning and growth at work here.

Ultimately, team leaders must understand that undertaking a diversity recruiting strategy isn’t just about checking a box. It’s about creating an entirely new culture and environment at work. It deserves just as much, if not more, attention as any other recruiting strategy.

It can feel overwhelming to tackle, but there’s no better starting point than today!

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How to Improve Hiring Practices for Diversity

If you’re faced with diversity hiring goals and you’re unsure where to start, you’re not alone. If you’re looking for how to easily improve your diversity hiring practices, we’re here to support you.

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What Does Hiring for Diversity Look Like?

Embracing diversity means celebrating what makes people unique and respecting the life experiences that people have faced. Prior to starting any diversity recruiting or hiring strategy, you need to work within your team to learn. Define what diversity means to you and what changes you can make today to build an inclusive workplace.

There is no one size fits all look to diversity. What is diverse in your industry or geographic area may not be diverse in another. So start by defining what diversity looks like to you and your team. Remember that diversity doesn’t mean just a diversity of races. Demographic diversity is just one step on the path to inclusion. Make sure that you are focused on building a team filled with different races, ethnicities, sexual orientations, educational backgrounds, work experiences, and more to work towards an inclusive workplace.

Steps to Take to Improve Hiring Practices for Diversity

Audit Where You’re At

Everything starts with knowing where you’re at. Take a look at how you’re supporting diverse candidates. How can you make those support systems clear in your employer branding? What are you currently doing to hire diversely? How are you training and working with hiring managers to ensure that they are receptive to diverse candidates?

If you don’t have support systems set up, you need to get to work. Bringing in experts and consultants is a perfect way to establish diversity guidelines within your organization. Blunt conversations are going to happen and they’ll hold a mirror to any flaws your team may be facing.

Update Your Job Postings

When you’re posting about jobs, make sure that you’re posting in the appropriate places. If you’re looking to hire people with more professional experience, post on LinkedIn. If you’re looking to hire new graduates, check out local university career centers and job boards.

In addition to where you’re posting, perfect what you’re posting! Make all job postings accessible to those with disabilities by using alt text. Make your postings welcome to everyone by using gender-neutral pronouns (they/them). There are lots of tools available to check any bias that may be in your postings so now is the time to use them!

If you are ready to change your job postings, Katrina Kibben is an incredible expert who shares a lot of tips on her own blog here.

Don’t Hide from Diversity

Diversity should be celebrated. You need to tackle head-on your own unconscious biases and work with experts to work through them. One of the biggest conversations happening right now is how the phrase “I don’t see color” misses the point. Negating people’s life experiences in favor of seeing all people as equal means forgetting that people are not yet treated equally. As Janice Gassam Asare shared, “If you are conducting training to help individuals move past their racial biases, it’s important to understand that the goal is not to be color-blind. The goal is actually to see and recognize skin color but to control and regulate your innate impulse to make decisions based on such characteristics.”

If we remove personal information from resumes in the process called “blind hiring”, are we not just discounting those life experiences in order to soothe our own fears at confronting our biases?

A strategy called “partitioning” is making its way into the minds of recruiters. Using different methods can be helpful so it’s important to test and see what works for your team to build the most diverse pipelines.

Track the Data

As with any recruiting and hiring strategy, you need to track the data. We’ve said it before: Data-driven decisions are often the difference between random successes and long-term growth.

Pay attention to the journey of diverse candidates through the hiring process. Where are they falling out of the race? Why are they falling out of the race? Where can your team get better at being inclusive and fostering belonging?

It can be difficult to face the story that data will tell you, but it’s an incredibly important step in the growth journey.

Shameless plug: We can help you track that data and make sure that you are welcoming everyone to the roles they could excel at.

This post focused on recruiting and hiring, but remember that the diversity, equity, inclusion and belonging journey does not end with the job offer. This is a long-term cultural shift that requires effort at every step of the way, but we promise, it’s worth it.

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Quality of Hire: What It Means for the Business

What does quality of hire mean? 
What does hiring with quality in mind look like?
How can you effectively measure quality of hire?
Why is it important to your business?

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What Is Quality of Hire?

Quality of hire is a metric that measures the value that new employees bring to the company. Building a team with high quality of hire often means that, in dollars, the employees bring in more value than they cost.

Despite businesses clearly desiring quality hires, all too often, it’s not a standard KPI. In fact, HR Dive reported: “Survey results showed that while 64% of respondents said they measure quality of hire, more than a third said they don’t track it at all.”

What does hiring with quality in mind look like?

If you’re looking to make quality of hire a KPI, recruiting teams need to be able to prioritize it from the start.

What equates to a good hire varies from company to company. Defining what quality means to you and your team is the first step that organizations must take in order to prioritize it. In order to define what it means, ask yourself one very important question:

What is valuable in this role? 

Are you looking for someone who can help the company save money? Are you focused on someone who can proficiently manage a team of others and hit new milestones? Is your quality candidate someone who is proactive about starting projects with no oversight?

When you define these parameters, share them with recruiters to make sure that they can implement particular questions in the sourcing process. There’s no such thing as giving too much information to recruiters here! The more clear you are with the position’s needs, the more likely your recruiters can effectively find the right candidates.

It’s likely that there are a plethora of qualified candidates already sitting in your internal data. In order to unlock that data for your recruiters, you need the right tools. We can show you how HiringSolved can help you effectively search your internal data and increase your recruiting team’s search capabilities. Let automation take care of finding those candidates with a high quality of hire ranking!

How Can You Effectively Measure Quality of Hire?

The most common formula is:

Score for each of your indicators out of 100. For example, if your indicators are:

Performance
Budget-Savings
Employee Satisfaction
Customer Satisfaction

And the employee has received 90, 70, 85, and 95 in those indicators. You would fill in the formula as:

(90 + 70 + 85 + 95) / 4 = 85

Again, it’s up to you to decode what final number qualifies as successful. But a common gauge is to look at the overall average of your employees to decode what is good and where improvement can be done.

How Can Quality of Hire Change Your Business?

ThriveMap created a calculator to estimate the costs of a bad hire. They found that “a company in the hospitality industry with 500 employees, an annual 5% increase in headcount and a 15% turnover rate” could see the bad hire costs add up to “more than $500,000.

The reality of the situation is that businesses simply can’t afford to make bad recruiting moves. By tracking quality of hire organizations are better able to implement strategic recruiting plans and avoid those recruiting mistakes.

So many recruiting metrics focus solely on the tactical recruiting process, but we need to remember that recruited candidates become employees. Their journey doesn’t end when the recruiter is no longer actively involved! If organizations track quality of hire, then recruiters can better understand the value they’re bringing to the company (likely increasing recruiter engagement and company loyalty) and pivot their strategies as needed to continue to bring that value.

Want to talk more about quality of hire and how to implement new and useful metrics in your recruiting strategy? Get in touch!

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