In 2019, any recruiting organization not driven by data is a recruiting organization primed to be left behind.
At a minimum, recruiters and talent leaders need to know their internal metrics. To excel, however, they need real-time access to the most granular data, and they need to be able to compare their metrics against industry averages.
In Parts 1-3 of our 2019 Talent Benchmarks series, we explored the data behind sourcing, nurturing, and interviewing. In Part 4, we’ll delve into the industry benchmarks you need to build an effective, data-driven hiring plan.
64% of candidates who receive an offer will accept
Offer acceptance rate is arguably the most important metric for recruiting organizations to track. Our data show that 64% is the industry average. While it is only an average, anything under 64% is a problem. Getting a candidate to the home stretch only to have them reject the offer isn’t just a waste of everyone’s time — it’s demoralizing and can have a direct impact on your business plan.
Of course, acceptance rates can vary wildly from role to role. We found that business development representatives have the lowest offer acceptance rate at 56%, followed closely by engineers at 58%. On the other end of the spectrum, account managers accept offers 73% of the time. These variances should always be taken into consideration to keep expectations in line with the data.
Why acceptance rates matter
If acceptance rates are below industry benchmarks, it’s a sign that you need to take a serious look at your offers and your candidate experience. You might find that your salaries aren’t competitive, or perhaps your candidate experience leaves something to be desired, or maybe your hiring process is moving too slowly.
To get to the bottom of things, you should always follow up with candidates who reject your offers. You can have a standardized questionnaire, or you can give them a call for a more personalized touch. The bottom line is that you can’t know you have a problem on your hands if you don’t have all the available information.
The overall hire rate is .83%
Hire rate is another metric that every recruiting organization should be tracking. It’s the conversion rate across the entire recruiting lifecycle. It’s calculated as the total number of candidates divided by the total number of hires.
The metric is a proxy for how hard it is to hire for a given role. Generally speaking, a low hire rate indicates a hard-to-fill role, but that’s not always the case. If you’re seeing an unusually low hire rate compared to industry averages (or your company average), it might mean there are inefficiencies impacting your ability to make successful hires. Either way, it’s a situation worth investigating.
A level deeper
The overall hire rate is .83%, but as with everything, the more granular you can get, the better. We found that marketing and data-related roles have the lowest hire rate at .45%, while customer service positions have the highest rate at 1.39%.
We also performed analysis of hire rates by company size. Unsurprisingly, the largest companies (1,500+ employees) have the lowest hire rate at .65% while the smallest companies (1-20 employees) have the highest at .94%. This is likely due to the fact that large organizations have far more applicants.
Data-driven hiring is one of the best competitive advantages you can have. With all the relevant data at your fingertips, you can iterate and optimize your recruiting process in a way that you could have never done before. Be sure to look out for the last entry in our 2019 Talent Benchmarks series which will cover the last phase of the Talent Relationship Lifecycle: Rediscovery.
For more industry benchmarks, download the full report, and to get a firsthand look at how to achieve data-driven hiring, request a demo and one of our recruiting experts will give you a walkthrough of the Lever platform.