Using Metrics to Achieve Win-Win Hiring Outcomes
At SmartRecruiter’s Hiring Success 2020, Rebecca Carr, Sr. VP at SmartRecruiters, and I will be conducting a workshop on how to use metrics to deliver Win-Win Hiring outcomes.
Win-Win Hiring will be the most talked about new hiring trend in 2020! In fact, it’s so important, we’ll provide a preview at our next public webcast on January 23, 2020.
A win-win hiring situation means both the hiring manager and the new hire agree it was a great decision one year after the hire. SmartRecruiters builds this tracking capability into their ATS system calling it a Net Hiring Score (NPS). It’s calculated by asking both the hiring manager and new hire how satisfied they are with the role 90 days after starting. While this is an important metric to track, it’s even better when it becomes a goal, like “Maximize job satisfaction for every new hire to ensure a “Win-Win Hiring” outcome and to minimize first-year turnover.” In this case process control and forward-looking metrics can help achieve the goal. Understanding how this can be done starts by understanding these definitions:
Dead or Historical: These metrics describe what happened yesterday, last week, last quarter or last year. While useful for reporting and explaining problems they’re too late for correcting the problems.
Live or Process Control: These metrics describe what’s happening in real time in order to address the problem right away. For example, in manufacturing when a machine starts to produce out-of-spec parts it’s stopped in order to correct the problem before it slows down the whole assembly line.
Forward-looking or Anticipatory: These metrics describe what’s likely to happen next week, next month, next quarter or next year in order to prevent problems from occurring. For example, if a sales rep hasn’t made the required number of customer presentations in any given month, they won’t make their quarterly quota.
These same types of metrics can be used to achieve a Win-Win Hiring goal using SmartRecruiters’ Net Hiring Score as a target goal:
Source Semi-Finalists (forward-looking metric): A strong sourcer/recruiter only needs 15-20 prospects at the top of the funnel to get one great person hired as long as they meet these three conditions:
- They’re performance qualified, meaning they can do the work.
- They possess the Achiever Pattern, meaning they’re in the top tier of their peer group.
- They would quickly see the job as a logical next step in their career progression.
If the first two conditions are met it’s likely the hiring manager would want to see the person and if the third condition is met it’s more likely the person would respond to a compelling message, agree to an interview onsite and accept an offer if one were extended. By reviewing the target prospect pool based on these conditions a talent leader or hiring manager can quickly tell if a Win-Win Hiring outcome is even possible with this short-list of prequalified prospects.
First Article Inspection (live metric): If the first two candidates presented by the recruiter to the hiring manager aren’t worth inviting onsite for a full interview, stop the process since something upstream is broken. Once fixed, this step will save time, increase process efficiency, reduce first impression bias for those invited onsite, increase assessment accuracy and increase the likelihood of having offers accepted.
Criteria for Accepting an Offer (live and forward-looking metric): If a candidate accepts an offer largely based on the title, compensation, location and company brand, a Win-Win Hiring outcome is problematic. To better understand the candidate’s decision-making process, ask candidates to ignore all of this short-term stuff and ask if they really want the job. While most will say yes, few will be able to describe why in convincing detail. Good details include clarity about job expectations, why the work is intrinsically motivating, details about the hiring manager’s leadership style and how the job puts the person on a stronger career trajectory in comparison to other opportunities.
You know what was not discussed during the interview if any of these factors are vague or missing. You’ll also know then and there if your offer will be accepted or not for the right reasons and if three to six months later the person and the hiring manager will both say the right decision was made.
It’s important to recognize that in any process design effort every step must be tracked to ensure the entire end-to-end system is functioning properly. SmartRecruiters’ NPS metric is a great way for recruiters and hiring managers to focus on what’s important – a Win-Win Hiring outcome long after the hire, not just on the day the person accepts an offer.