Hiring and recruiting teams are measured by metrics. From time to hire to salary negotiations, number of contacts and other benchmarks make up the daily, monthly, and quarterly metrics that staffing teams live by. But how can healthcare organizations measure the metrics of even the most routine hiring process? What ROI should your team look at to gauge your success in 2021?
Hiring Metrics for FQHCs
Many hiring teams in healthcare and other fields measure their success by Cost Per Hire. CPH looks at all of the costs of the candidate recruiting process. For example:
- Advertising costs
- Applicant tracking system costs
- Background checks and drug tests
- Candidate relocation costs
- Costs of job fairs
- Hiring bonuses
- Recruiter salaries and benefits
- Staffing agency fees
These are typical costs, but you may have others to add to this list. However, we believe this process is missing staff retention and turnover, a critical part of the costs associated with that new hire. For example, if your organization spends $100,000 hiring 100 candidates this year, the CPH is $1,000 per employee. However, what if 50% of these workers quit shortly after they are hired?
Ironically, many healthcare organizations fail to take this into account, and many don’t even calculate CPH. Instead, we suggest calculating ROI based on the number of billable hours you spend sourcing, interviewing, hiring, and even orienting or training the new hire. If you consider this, look closely at who is actually participating in the hiring process. Are department leaders involved, or is it just the recruiter? Who is training the new employee? Analyzing the true cost of the hire against their salary and then looking closely over time at the tenure of these candidates will yield a more accurate picture of the ROI of your recruiting effort.
Another area to measure is the applicant funnel itself. Where are your candidates coming from? Are you tracking the number of candidates versus the number of successful candidates hired by the source of where you found them? Which channels yield the best candidates for your organization? Job boards, recruiting firms, and referrals are all common candidate sourcing tools. Analyzing the most effective channels and then concentrating on building your efforts within that sourcing funnel will improve your time to hire and your hiring ROI.
The ROI of your hiring process should also take into account:
- How many applicants applied versus how many were interviewed?
- How many interviews resulted in a job offer?
- How many job offers closed with a candidate acceptance?
- How much time did your team spend moving the candidate into a new hire?
This exercise in ROI is actually an exercise in how to improve the quality of your hiring process. Like many healthcare organizations, FQHCs do not typically analyze these results as part of their professional employment process. To undergo this process, you need to take a page from the staffing agency playbook, whose processes are measured consistently in order to improve them.
Once these metrics are in hand, your healthcare organization can become more efficient in its hiring processes. UHC Solutions is part of a tailored approach to help our community provider organizations improve the ROI of their hiring and retention process. This approach gives you the ROI you need to justify the hiring expenditure while improving the quality of candidates on your team. We can help. Contact us today to find out more.