Issue link: https://www.e-digitaleditions.com/i/131821
Recruitment \With advances in automated applicant tracking systems (ATS) and the entry of the Web, the sourcing picture has shifted. With the right tools Figure 1 in hand, professionals can pinpoint exactly where applicants and hires originate—whether it be a job board, a search engine, a print ad, or a referral. SilkRoad's Source Effectiveness Report was designed to aid professionals in understanding the recruitment sources used by a large number of other organizations, so that they can assess their own sourcing efforts. This report delivers quantitative data about the sources that provide companies with qualified interviews and hires. The data was extracted directly from the talent management systems of some of the world's largest companies and leading employers. Four common metrics are frequently used by businesses to evaluate source effectiveness include applicants, interviews, offers, and hires. Out of the four, interviews with HR buyers showed that interviews and hires are rated most effective. When a candidate qualifies for an interview, the recruitment source—at least at that early stage—can be judged effective. Beyond that, other elements are added to the mix that might determine whether a candidate receives an offer, such as salary requirements or fit with the company culture. But ultimately, the interview is the first critical step. Hires are the second key metric that companies use to determine source effectiveness. Many companies combine this metric with others—such as external costs for agency fees and internal costs for staffing efforts External sources. The top 10 external sources for interviews and hires were a combination of online and offline sources—with online sources predominating. Of the top 10 external sources, Indeed is the leading external source of interviews and hires (see Figure 1). It provided almost double the number of hires and almost two and a half times more interviews than the next largest source, CareerBuilder. Note that offline sources, such as agencies and print advertisements, yielded a notably smaller number of hires and inter views. and physical infrastructure, according to SHRM. Together these elements give professionals cost per-hire information, one of the most widely used When it comes to evaluating external online and offline sources, online measurements in the industry. Other common metrics include quality of sources account for the lion's share of hires and interviews: These represent hire, including on the job performance and tenure rates. When combine, an impressive 87 percent of interviews and 80 percent of hires. External these metrics help determine the return on investment (ROI). According to online sources included specific job search engines, and branded and Dr. John Sullivan's article, The Silliness of Measuring Cost Per Hire, ROI ties unspecified job boards. External offline sources included agencies, job recruitment efforts directly to the bottom line and enables organizations fairs, and print advertising, among others. to compare spending relative to the return that the costs produce. External Versus Internal Sources The SilkRoad OpenHire ATS data for this report came from approximately 3,500 sources. Examples of external sources include specific job search engines, branded and unspecified job boards, print advertising, TV/radio advertising, job fairs, and agencies. Examples of internal sources include recruiter sourced (employer sourcing), company career sites (employer websites), referrals, and inside hires. Internal sources. Although employee referrals remain the strongest base for effective recruiting in terms of hires (44 percent), they were actually tied with company websites for interviews (36 percent). Internal hires accounted for most of the remaining activity from internal sources: 93 percent of interviews and 94 percent of hires came from referrals, company websites, and internal hires (see Figures 2 and 3). An explanation for the dominance of employee referrals may be due to Results show that external sources are more effective in generating personal references or recommendations are heavily weighted in the hiring interviews. They produce 56 percent of interviews as opposed to internal decision. Or, it is possible that a current employee clearly understands the sources, which deliver 44 percent. Yet, internal sourcing (58 percent) qualifications that make a candidate the "best fit'' for an organization. produces more hires compared to external sources (42 percent). This year's results show slight gains in external sources compared to last year. For both interviews and hires, external sources gained roughly 6 percent compared to findings from last year's reprot. [52] HRO TODAY MAGAZINE | APRIL 2013 Online sources. Extensive analysis of customer data shows that online recruitment efforts are vital for producing the types of candidates that companies interview and hire. Online sources accounted for 65 percent of all interviews and 48 percent of all hires.