You can't improve what you don't measure. Yet 67% of startups track vanity metrics like "number of applications" while ignoring the metrics that actually predict hiring success. Here are the 7 metrics that separate world-class hiring from expensive guesswork.
💡 The $4.5M Difference
Companies that track these 7 metrics hire 40% faster, save $4,500 per hire, and have 23% lower turnover. For a 50-person startup, that's $4.5M in value over 3 years.
Metric #1: Time to Fill (The Speed Indicator)
What it measures: Days from job posting to accepted offer.
Industry average: 45 days
Top performers: 21 days
Your target: Under 30 days
How to Calculate Time to Fill
Time to Fill = Date of Acceptance - Date Job Posted
Breaking it down by stage:
- • Sourcing: 5-7 days
- • Screening: 3-5 days
- • Interviewing: 7-10 days
- • Decision: 2-3 days
- • Offer negotiation: 3-5 days
Why it matters: Every day a role stays open costs $500-$2,400 in lost productivity. Plus, the best candidates are gone after 10 days.
How to improve:
- • Create interview templates you can schedule instantly
- • Use AI screening to cut resume review from days to minutes
- • Set up automated scheduling tools
- • Make offers within 24 hours of final interview
Metric #2: Quality of Hire (The Success Predictor)
What it measures: New hire performance vs. expectations
How to calculate: (Performance Score + Retention + Manager Satisfaction) / 3
Top performer benchmark: 85%+ quality score
Quality of Hire Scorecard
| Component | Measurement | Weight |
|---|---|---|
| Performance | 90-day review score | 40% |
| Retention | Still here after 1 year? | 30% |
| Culture Fit | Team feedback score | 20% |
| Ramp Time | Days to productivity | 10% |
Red flags in quality scores:
- • Quality below 70% = broken hiring process
- • Wide variance between teams = inconsistent standards
- • Declining trend = interview fatigue or desperation hiring
Metric #3: Cost Per Hire (The Efficiency Metric)
Formula: (Internal Costs + External Costs) / Number of Hires
True Cost Per Hire Calculator
Internal Costs
- • Recruiter salary: $2,500/hire
- • Interviewer time: $1,800/hire
- • Admin overhead: $300/hire
External Costs
- • Job board posts: $500/hire
- • Assessment tools: $200/hire
- • Background checks: $150/hire
Average Total: $5,450 per hire
Top performers: Under $3,000
How to reduce cost per hire:
- Build referral program (40% cheaper than other sources)
- Improve job post conversion (better copy = fewer paid posts)
- Reduce time-to-fill (shorter process = lower costs)
- Use AI screening (saves 20+ recruiter hours)
Metric #4: Offer Acceptance Rate (The Closer Metric)
Formula: Offers Accepted / Offers Extended × 100
Benchmark: 85%+ acceptance rate
Red zone: Below 60%
Why Offers Get Rejected
- • 38%: Compensation below expectations
- • 27%: Accepted competing offer
- • 19%: Poor candidate experience
- • 11%: Role/responsibilities mismatch
- • 5%: Counter-offer from current employer
How to improve acceptance rates:
- Discuss comp expectations in first call
- Move fast (10-day rule)
- Have hiring manager make the offer call
- Create excitement with team introductions
- Follow up within 2 hours of making offer
Metric #5: Source of Hire (The Channel Optimizer)
What it tracks: Where your best hires come from
Typical Source Distribution
Key insights:
- Referrals have 45% better retention but only fill 35% of roles
- Job boards are expensive but necessary for volume
- Direct applicants are 2x more likely to accept offers
Metric #6: First-Year Retention Rate (The Validation Metric)
Formula: (Hires Still Employed After 1 Year / Total Hires) × 100
Benchmark: 87%+ retention
Crisis level: Below 70%
"If someone quits in the first year, you hired wrong or onboarded wrong. Either way, it's a $50,000+ mistake." - Pat Wadors, CHRO at Procore
When People Quit (And Why)
- Week 1-2: Immediate regret (15%) - Total mismatch
- Month 1-3: Reality shock (35%) - Role wasn't as described
- Month 4-6: Culture clash (25%) - Don't fit the team
- Month 7-12: Growth frustration (25%) - No development path
Metric #7: Candidate Net Promoter Score (The Experience Metric)
Question: "How likely are you to recommend our hiring process to a friend?"
Scale: 0-10
Calculation: % Promoters (9-10) - % Detractors (0-6)
Good NPS: 30+
Great NPS: 50+
Why Candidate Experience Matters
- • 72% share bad experiences on Glassdoor
- • 55% avoid companies with bad reviews
- • Good experience = 2.5x more referrals
- • Rejected candidates with good experience become customers
Your Recruitment Dashboard Template
Weekly Metrics Review
Speed Metrics
- ☐ Time to Fill: _____ days
- ☐ Time to Hire: _____ days
- ☐ Offer response time: _____ hours
Quality Metrics
- ☐ Quality of Hire: _____%
- ☐ 90-day retention: _____%
- ☐ Manager satisfaction: _____%
Efficiency Metrics
- ☐ Cost per Hire: $_____
- ☐ Offer acceptance: _____%
- ☐ Interview-to-offer: _____:1
Experience Metrics
- ☐ Candidate NPS: _____
- ☐ Glassdoor rating: _____
- ☐ Referral rate: _____%
From Metrics to Action
Tracking metrics is step one. Here's how to actually improve them:
-
Pick ONE metric to improve this quarter
Don't try to fix everything. Focus wins.
-
Set a specific, achievable target
Example: "Reduce time-to-fill from 45 to 30 days"
-
Identify the bottleneck
Where does the process break down?
-
Test one change at a time
Scientific method: isolate variables
-
Measure weekly, adjust monthly
Fast feedback loops = fast improvement
Track All 7 Metrics Automatically
RecruitHorizon tracks these metrics in real-time, sends weekly reports, and suggests improvements based on your data. See your hiring performance improve in days, not months.
Remember: What gets measured gets managed. What gets managed gets improved. Start with one metric, nail it, then add another. That's how you build a world-class hiring machine.