How to evaluate recruiter performance?

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Aditya Datta
March 26, 2024

Recruiters are like the gatekeepers of a company's future—choosing the right people who will drive the organisation forward. 

Shifting gears from posting on job platforms to cherry-picking top candidates, setting up interviews, shortlisting the best, and finally rolling out job offers to secure the cream of the crop—this entire journey is a marathon, not a sprint. It demands daily dedication, sharp decision-making, and significant effort.

However, the real question remains: Are those efforts truly making a difference? Are they truly effective?

In this intricate dance, recruitment KPIs are the spotlight to validate if their strategies are hitting the mark or veering off course.

Top 5 KPI's evaluate recruiter performance

Quantity of Hire: 

This is the most straightforward KPI managers can set for recruiters. This figure acts as a clear barometer of the company's hiring momentum, reflecting its broader recruitment strategy and growth objectives. 

Naturally, this target will vary based on the organisation's size and the volume of open positions, offering recruiters a tangible benchmark to strive towards.

Frequency of Calculation: Quarterly

Formula: Sum of employees hired by a recruiter in a given quarter.

Healthy Rate: Varies by company size.

Quality of Hire: 

Quality of Hire stands as a critical indicator for recruitment success, deeply valued by organizations aiming to enhance their teams. It measures the impact and value new hires add to the company, focusing on both their initial capabilities and their ongoing contributions.

Frequency of Calculation: Quarterly 

Formula: (Job Performance + Ramp-up Time + Engagement + Cultural Fit) / 4

Healthy Rate: depends on the survey criteria

Cost per Hire: 

Cost per Hire calculates the total costs involved from attracting to onboarding new hires. This metric totals up everything spent in the recruitment process—from posting jobs to agency fees, referral bonuses, background checks, and even the costs of onboarding and training.

Frequency of Calculation: Monthly/Quaterly

Formula: Internal Recruiting Costs + External Recruiting Costs/Total new hires

Healthy Rate: 5% of CTC

Sourcing Channel Efficiency: 

Sourcing Channel Efficiency measures the effectiveness of different methods used to find candidates, focusing on their success in attracting qualified individuals. This efficiency is crucial for determining which channels—be it job boards, social media, referrals, or agencies—offer the most value in terms of quality and cost.

Frequency of Calculation: Periodically, to adjust strategies according to performance.

Formula: Total number of hires by the channel/Total number of applications via channel * 100

Healthy Rate: Varies by channel

Offer Acceptance Rate: 

The Offer Acceptance Rate metric gauges the efficiency of the recruitment process by tracking the percentage of job offers accepted by candidates. It's distinct from, yet occasionally aligned with, the average time per hire, particularly when acceptance rates are high.

Understanding the Offer Acceptance Rate helps organizations refine their hiring processes, ensuring that job proposals are competitive and appealing to candidates. This metric is crucial for improving the overall efficiency of recruitment efforts and enhancing the candidate experience.

Frequency of Calculation: Quarterly or Annually

Formula:  (Number of Offers Accepted/Total number of offers rolled out)*100

Healthy Rate: 42.1% rate is considered optimal, though this may vary by industry and job role.

17 additional metrics include (optional):

Rejection Rate:

Percentage of candidates not selected for employment, highlighting inefficiencies in the hiring process​.

Recruiting Yield Ratio: 

The percentage of applicants moving from one hiring stage to the next, indicates the efficiency of the recruitment process​​.

Candidate Net Promoter Score (cNPS): 

Measures a candidate's likelihood to recommend the company as a workplace based on their recruitment experience​​.

Turnover Rate: 

Determines employee retention and the effectiveness of management and retention strategies​.

Applicant Drop-off Rate: 

Percentage of applicants who start but do not complete the application process, indicating the user-friendliness of the application process​.

Candidate Satisfaction: 

Measures the satisfaction level of candidates with the recruitment process, impacting their decision to accept job offers​.

Source of Hire: 

Tracks where hires are sourced from, helping identify the most effective sourcing channels​​.

First-Year Attrition: 

The rate at which new hires leave within their first year, points to possible issues in onboarding, training, or candidate quality​.

Interview-to-Offer Ratio: 

Assesses the effectiveness and selectiveness of the interview process​.

Candidate Job Fit: 

Evaluates how well candidates match the job requirements​.

Candidate Conversion Rate: 

The percentage of candidates moving from one hiring stage to the next, aiding in identifying areas needing refinement​​.

Employee Lifetime Value (ELTV): 

Estimates the total value an employee contributes during their tenure, considering performance, progression, and referrals​​.

Employee Turnover Rate: 

Measures the rate at which employees leave, influencing recruitment and retention strategies​ ​.

Diversity of Candidates Hired: 

Proportion of hires from underrepresented groups, reflecting the diversity of the hiring process​ ​.

Recruitment Marketing Channel Effectiveness:

Evaluates the success of various recruitment marketing channels based on the number of hires​​.

Adverse Impact: 

Analyzes hiring rates among different demographic groups to identify potential biases​​.

Applicant-to-Hire Ratio: 

Compares the number of applicants to the number of hires made, measuring the efficiency of the hiring process​.


To fine-tune your hiring process and secure the best talent, it's crucial to leverage specific recruiting Key Performance Indicators (KPIs). These metrics illuminate your recruitment team's performance, guiding you to make informed decisions in your hiring strategies. 

Continually monitoring and refining these metrics ensures your team consistently attracts top-tier candidates, propelling your organisation towards sustained success. Tailor these KPIs to your organisation's unique landscape and keep them updated to reflect evolving goals and market dynamics. By doing so, you cultivate a high-calibre team that contributes significantly to your organisation's growth.