HR MetricsKPIsMetrics

3 Essential Metrics for 2018 Headcount Planning

It is necessary that you get your metrics straight to measure headcount planning with more accuracy. All companies want their HR and recruiting heads to think more strategically to prevent downtime. In this article at Lever, Maya Humes shares with you the insights derived from Hilary Clarke, Head of Talent Acquisition and Liz Eavey, Director of North America Operations from HotelTonight.

3 Practical Metrics to Help in Headcount Planning

A recruiting process has five main phases—“headcount planning, sourcing, interviewing, candidate experience, and closing.” Having KPIs to measure your performance allows you to understand where you are lagging. Eavey opines that they are successful in their implementation because of their metrics-driven approach. Following are the three metrics they work on to garner success in headcount planning.

1.    What Are the Benefits?

Employees cost the most to any company. So, the recruitment duo wanted to measure ROI for every hired employee. So, they use a “quantitative Resource Allocation model” to distribute resources. Previously, Eavey’s team would start searching when a hiring manager demanded new resources. Today, her team prioritizes factors like location, favorable recruitment window, and availability before they satisfied a manager’s claims. Following this model, the duo has experienced over 30 percent year-over-year growth in ROI.

2.    Resource Management

You cannot stop employees from leaving the companies. So, it is necessary to keep a stream of resources ready in your headcount plan. It also helps when a vacancy is created due to promotion. Clarke and Eavey share a dashboard that updates them with the roles that need resources. Their historical data also gives insight into the number of applications, phone and onsite interviews they had to perform to hire one resource. It is easier to identify areas they are lagging and come up to speed faster. This process of sharing information through a dashboard has brought more transparency, collaboration, and trust between teams. They have achieved 100 percent of their goals and sped up the hiring process by four times.

3.    Employee Turnover

Employee attrition or impact date is the third metrics that the recruitment duo measures. Since it is a natural process in an employee lifecycle, it is better to prepare in advance. They keep some budget and time aside for backfill activities. By the time an employee leaves the company, they have a candidate list ready. From their research on employee attrition, they found out that impact date is more relevant to predict backfills. When an employee starts to accrue revenue, the duo marks that as an impact date and starts searching for new hires. They have experienced a reduction in downtime and loss of revenue due to this metric.

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