Why Reporting and Metrics Are Important To Every Recruitment Function

by Ann Barrett

Many articles have been written about reporting and metrics and how they can “transform” the way organizations look at recruitment functions. While Non-HR functions, such as sales, IT, and others, have depended on reporting and metrics to demonstrate results and build strategy, this is still a relatively new area for HR and recruitment.

Many senior people in recruitment may feel like they are missing out on reporting and metrics. This is due to one of two reasons:

Unable to commence - unsure what reports should be used

Stalled - Some reports exist but unsure what to do with the data/results

The truth is, many recruitment functions have only implemented reporting and metrics models in their organizations within the last few years. I believe recruitment can break the stereotype that it is "simply an administrative function" by demonstrating it can contribute to the organization’s bottom line.

Sales departments develop strategies and goals to enhance financial performance by relying on reports and metrics. From an organizational perspective, the importance of reporting can be found in your organizations annual report. Metrics in the annual report to publicly communicate how they are:

Competitive in the market place

Able to demonstrate good return on investments (ROI)

Able to control expenses against revenue

Able to satisfy customers/ generate repeat business

Able to make decisions on facts and results

Recruitment, as a subset of HR, has constantly struggled with demonstrating its impact on organizational results because they don’t generate revenue. Many articles have also compared Recruiters to Salespeople in an effort to break the stereotype. Salespeople are responsible for one thing, generating revenue. If a Recruiter is being marketed as a Salesperson in your organization, be prepared to demonstrate how they impact financial results. Every organization uses reports and metrics to understand their organizational performance.

I’ve purposely separated the term reporting and metrics. In order to develop metrics, you first need to develop a reporting model. In keeping with the theme of how reporting and metrics can allow Recruitment to demonstrate value to the organization, here are some measures and how they compare:

If Recruitment wants to gain credibility in the organization, reporting and metrics are necessary.

Next week I will discuss six steps your recruitment function can use to develop a self-service reporting model:

1. Develop A Strategy & Action Plan
2. Work with Stakeholders & Establish a Governance Process
3. Have a Change Management Plan
4. Provide Training
5. Understand Your Results
6. Communicate & Action Results