Why measure recruitment
Recruitment is often judged only by its final outcome: whether or not the position was filled. But the answers to the most important questions lie in the intermediate stages. Why did the position take so long? At which stage did candidates drop out? Is the most expensive channel the one that brings in the best professionals?
A small set of metrics, tracked regularly, answers these questions. The key is not to measure everything, but to always measure the same way, so that the numbers can be compared over time.
Time to fill
Measures the calendar days between opening the position and the candidate accepting the offer. It is the most widely used metric for assessing how fast the process is.
Track it by type of position: overall averages hide specific bottlenecks. An operational position and a specialized technical position naturally have different timelines, and combining them in the same average distorts the analysis.
Time per stage
Breaking time to fill down by stage (advertising, screening, interviews, manager decision, offer) shows where the process stalls. In many cases, the biggest delay is not in sourcing candidates, but in scheduling interviews or in a slow final decision.
Record the entry and exit date for each stage. With this data, it is easy to identify the bottleneck and agree on deadlines with the departments involved.
Cost per hire
Adds up the costs of the process (job ads, tools, team hours, third-party services, travel) and divides the total by the number of hires in the period. It helps compare channels and decide where to invest.
Separate fixed costs, such as tools and the internal team, from variable costs, such as paid ads. This makes it easier to understand the effect of each decision on the total cost.
Offer acceptance rate
This is the number of offers accepted divided by the number of offers made, multiplied by 100. A low rate usually indicates a mismatch between what is presented during the process and the final offer, whether in salary, benefits, working hours or work location.
When a candidate declines, record the reason. Over time, these records reveal patterns that allow you to adjust the offer or the way the position is presented.
Turnover rate
A formula commonly used by companies is: ((hires + separations) ÷ 2) ÷ average headcount for the period × 100. Calculate it monthly and track the trend, not just the isolated figure.
As a market benchmark, DIEESE (the Brazilian Inter-Union Department of Statistics and Socioeconomic Studies) calculates the turnover rate of Brazil's formal labor market using a different methodology: it divides the lower of hires and separations in the year by the average stock of jobs. In the adjusted version, which excludes separations at the worker's initiative (resignations, retirements, deaths and transfers), the DIEESE study published in 2016 recorded 43.1% for CLT employment relationships in 2014. Because the methodologies differ, compare your company with itself over time before comparing it with the market.
Turnover in the first months
Track separations that occur in the first months of employment separately. They usually point to failures in selection, in the job description or in onboarding.
A useful cut-off is the probationary period: under the CLT (Article 445, sole paragraph), a probationary contract may not exceed 90 days. Measuring how many hires remain after this period helps assess whether the selection process is choosing well.
Quality of hire
There is no single formula. Many companies combine the manager's assessment after the probationary period, retention and early performance. Define the criteria in advance and always apply them the same way.
- Manager satisfaction with the hire
- Successful completion of the probationary period
- Retention after 6 and 12 months
- Performance in the first formal reviews
Candidate source
Record the channel through which each candidate arrived: referral, job ads, social media, résumé database or others. By cross-referencing source with quality of hire and cost, the company discovers which channels actually bring in good professionals and where it is worth investing more.
Calculation example
To illustrate, consider a hypothetical company with an average headcount of 200 people in the month, 10 hires and 6 separations. Using the common formula, turnover for the month is ((10 + 6) ÷ 2) ÷ 200 × 100 = 4%.
In the same month, this company made 12 offers and had 9 acceptances: the acceptance rate is 9 ÷ 12 × 100 = 75%. If the process cost R$ 15,000.00 and resulted in 10 hires, the cost per hire is R$ 1,500.00. The figures are only an example: the value lies in tracking the month-to-month trend and understanding the causes of variations.
A single metric rarely explains a problem. A long time to fill combined with a low acceptance rate, for example, suggests reviewing the offer; the same long time with few candidates at screening suggests reviewing the advertising channels.
How to use the numbers
Bring the metrics together in a monthly dashboard and discuss them with the requesting departments. A data-based conversation moves beyond opinion and leads to concrete adjustments to the profile, channels and stages.
Use aggregated data in reports. Individual candidate information is personal data protected by Brazil's General Data Protection Law (Law 13.709/2018) and must be restricted to the people running the process.
- Define the formulas in writing and do not change them without recording the change
- Break down the metrics by type of position and by department
- Compare each month with the average of previous months
- Turn each significant deviation into an action with an owner and a deadline
The formulas presented are common market references and may be adapted to each company's circumstances.
Official sources
Frequently asked questions
Where to start if the company measures nothing?
Start with time to fill and turnover in the first months: they require little data and already point to where to investigate.
Is there a turnover rate considered normal?
It depends on the industry, the type of position and the calculation methodology. As a reference for the formal market, DIEESE recorded adjusted turnover of 43.1% for CLT employment relationships in 2014, using its own methodology. The most useful approach is to track how your own rate evolves.
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