The most essential talent sourcing metrics to track 

Metrics being shown on a computer monitor for the article

Talent sourcing identifies candidates who are 120% more likely to want to make an impact and 33% more likely to seek out challenging work. In another article, we discuss what talent sourcing is and present the best strategies to attract good professionals on an ongoing basis, even before recruiting them. But to know if the talent sourcing strategy works, it is essential to monitor it. 

Talent sourcing metrics help to understand the effectiveness of efforts from different sources of recruiting candidates. While recruiting metrics help track the entire recruiting and hiring process, talent sourcing metrics focus on the efficacy of initial talent sourcing activities and the sources the company uses to capture candidates.  

Effectiveness of the talent sourcing channel 

What does this metric say? 

It monitors the effectiveness of each of the sourcing channels (example: job boards, social media, internal email, etc.) and their contribution to the candidate pool. 

How is it measured? 

To calculate the effectiveness of the talent sourcing channel, the total number of applications made through this channel must be divided by the total number of hires that came from this channel. So, for example, if you have 200 LinkedIn signups and three hires, the effectiveness of your talent sourcing channel (in this case, LinkedIn) would be 1.5%. 

Why does knowing this metric matter? 

Measuring sourcing effectiveness can result in significant savings. This metric allows the company to know how to optimize its talent sourcing process after understanding where its best candidates are coming from at the lowest cost. 

For example, the organization may find many applications that come through job postings but with a low percentage of hires. On the other hand, it may be that the company has a low number of applications through referrals but a higher percentage of employment. This trend makes sense because the referrer has already vetted the applications. 

As a result, an organization may want to implement a chain of incentives for employees to nominate candidates from their social circle for a job opening. Talent sourcing channel effectiveness should answer questions about your top and best sourcing channels, where most candidates and hires come from, and the cost per channel. 

Hiring pipeline speed 

What does this metric say? 

It measures the time from first contact with a candidate to accept the job offer (hiring). 

How is it measured? 

The company establishes this metric by calculating the number of days between the date of first contact until the candidate accepts the offer. For example, if the organization first contacted a candidate on May 1, 2021, and he took the proposal on October 1, 2021, its pipeline speed would be 153 days. 

Why does knowing this metric matter? 

Hiring pipeline velocity measures two crucial things: efficiency and consistency throughout the company’s entire recruiting process – from outreach, training, and qualification to hiring the candidate. 

First, it expresses the speed or slowness of the organization’s internal processes in hiring a professional (although the candidate’s behavior is an external factor). For example, if the pipeline is slow, it could mean that there are too many interviews or that interview scheduling is not efficient. The company can remove the bottlenecks that slow down its recruiting funnel by gaining these insights. 

This metric also shows the consistency of recruitment – if the company takes the same amount of time to fill a vacancy. So, for example, if the organization takes 100 days to hire a marketing manager, it should take the same amount of time the next moment the company employs the role. So again, it’s a piece of data that helps manage hiring managers’ expectations about when they should have a new hire. 

In addition, the company can also link this information to its talent sourcing effectiveness. For example, the organization may find that candidates who apply through job postings have a much slower turnaround time for accepting an offer. Or maybe, for example, candidates in the financial sector respond faster. 

Talent sourcing source productivity 

What does this metric say? 

It measures the efforts of a talent sourcing team and its results. For example, it involves data about emails sent, calls made, pre-screens completed, messages sent from LinkedIn, and their results. 

How is it measured? 

The company can track the activities that its team or individual members carry out weekly or monthly. So you can compare with your goals and see where the organization is after a certain period. However, it is essential to realize that the quantity of emails or messages on LinkedIn does not automatically indicate quality. Therefore, the organization should combine this metric with its candidate’s conversion and response rates. 

For example, if a supplier sends an email to 50 potential candidates and 10 responds, the source productivity would be 20%. If the professional improves that email with personalization and gets a 35% response, it would mean a 15% improvement in their talent sourcing productivity. The company can use this same calculation and measurement on various metrics (unsolicited calls, LinkedIn InMails, etc.). 

Candidate conversion rate 

What does this metric say? 

It measures the return the company is getting for the time and money invested in the daily work of talent sourcing. 

How is it measured? 

As candidates can be at various stages of the talent sourcing or recruiting process, it is imperative to measure this metric at these multiple stages. Calculate the candidate conversion rate: 

Candidate conversion rate = the number of candidates in the pipeline interviewed / number of candidates that the company recommended to recruiters / recruiting managers. 

For example, if the organization has 40 candidates that it recommends to a recruiter during the talent sourcing process and those responsible for the process move 10 of them to the interview stage, the conversion rate would be 25%. The higher the conversion rate, the more significant the sourcing efforts. 

Second, the company must also calculate the candidate offer acceptance rate. 

Candidate offer acceptance rate = number of offers accepted / number of offers made. 

This metric helps determine which application sources are more likely to accept a job offer than those who would not. For example, the company may find that candidates from competitors are more likely to get a job offer than candidates from other industries. This information would help the company’s strategy on where to look for candidates and where to allocate its resources. 

Why does knowing this metric matter? 

In a highly competitive market with a shortage of talent, the talent sourcing process needs to be optimized and the conversion rate. There is nothing more frustrating than going through all the talent sourcing to recruitment and the final offer and the candidate rejecting the offer. This possibility would not only redefine the entire recruitment process: but would also delay critical business operations. 

If the company notices a shallow conversion rate, this is an opportunity to get feedback from candidates and ask them the specific reasons they rejected the offer. If the number of candidates recommended to recruiters from sourcing efforts does not result in good interviews and, ultimately, quality hires, it is an indicator that the pipeline needs improvement. 

Answer rate 

What does this metric say? 

It simply measures the effectiveness of the company’s outreach to potential candidates. 

How is it measured? 

The company should calculate the number of outreach efforts divided by the number of responses. For example, if the organization sent 100 emails to potential candidates and got 12 answers, that’s a 12% response rate. You can compare the response rate with past performance and with benchmarks. The average response rate for an initial sourcing email should be between 30-50%. 

Before sending any messages to potential candidates, it’s best to do an A/B test internally. For that, it’s worth asking employees to respond to talent sourcing messages with a choice of which one is the best. Before contacting candidates, there will be a sample that can positively influence the messages. It is recommended to look at the various outreach tools and the average response rate per tool (e.g., email, LinkedIn, job boards, social media, etc.). 

Why does knowing this metric matter? 

It’s an excellent way to measure the effectiveness of a company’s messaging and, in a way, the appeal of its brand. In addition, it also talks about the quality of the messages. If the organization notices a low response rate, it may need to adjust the email header or subject line of a LinkedIn InMail. Or possibly customize messages more or send them at a different time.