As the world embraces remote work, hiring tech talent has also shifted towards virtual models. With the remote work trend set to continue in 2023 and beyond, companies must develop effective strategies to measure the success of their remote tech hiring models. 

What are Recruiting Measures?

Recruiting metrics help to track the success of hiring and also optimize the hiring process of an organization. Correct use of these metrics evaluates the recruiting process and ensures that the right people are being hired. Additionally, these metrics provide valuable data for improving the recruitment process because it is crucial to make informed recruiting decisions.

Why Should a Company Consider Recruitment Strategies When Employing Remote Technology Staff?

Companies should consider recruiting measures during remote tech hiring because they help evaluate the hiring process’s success and ensure that suitable candidates are hired. By tracking metrics such as application completion rate, retention rate, recruitment funnel effectiveness, and first-year attrition, companies can identify areas where the hiring process can be improved, leading to a more efficient and effective recruitment process.

Additionally, these metrics can help companies to reduce turnover, improve employee engagement and satisfaction, and ultimately improve the company’s bottom line. Companies can make data-driven decisions and also build a more successful remote tech team by focusing on recruiting measures.

In this blog, we will explore the metrics and strategies that can be used to evaluate the effectiveness of a remote tech hiring model.

• Time to Hire

Time to hire refers to the time it takes to fill a vacant tech position. It is a crucial metric in evaluating the effectiveness of any hiring model, including a remote tech hiring model. If hiring takes a lot of time, then it indicates that the model is ineffective or needs improvement. 

The average time to fill a position varies depending on the industry and the specific role, but generally, it should not exceed 45 days. According to a survey, the average time to fill a tech position in the US is 33.5 days.

• Quality of Hire

Measuring the quality of hires is a critical step in evaluating the success of the hiring model. Quality of hire is typically measured by assessing the new hire’s performance and ability to meet job expectations. 

This is done through performance reviews, employee retention rates, and feedback from colleagues and managers. A high-quality hire performs well in their role, contributes to the team’s success, and remains with the company long-term. According to a report, quality of hire is an essential recruiting metric for 67% of talent acquisition professionals.

• Cost Per Hire

The cost of hiring is an essential metric in evaluating the effectiveness of any hiring model. This metric includes all costs associated with the hiring process, such as job postings, recruiter fees, and the time spent on interviews and onboarding. 

A high cost per hire can indicate that the recruitment process is inefficient or that the model is not producing the desired results. The price per hire should not exceed 20-25% of the new hire’s first-year salary. According to a survey, the average cost per hire in the US is $4,129.

• Diversity and Inclusion

A remote tech hiring model should aim to create a diverse and inclusive workforce. Evaluating the success of a remote tech hiring model should include metrics that track new hires’ diversity and the workforce’s overall makeup. You can do this by monitoring metrics such as gender, race, ethnicity, and age. 

Creating a diverse and inclusive workforce aligns with social responsibility values and has been proven to increase innovation, creativity, and productivity. 

According to a report, companies that focus on ethnic and cultural diversity are 36% more likely to have above-average profitability.

• Candidate Experience

The candidate’s experience is an essential component of any hiring model. A candidate’s experience during the recruitment process can significantly impact the company’s reputation and willingness to accept a job offer. Therefore, evaluating the candidate’s experience and making improvements where necessary is essential. 

This can be done through candidate surveys, feedback from recruitment teams, and tracking metrics such as time to respond to applications and interview feedback. 

According to a survey, 78% of candidates said that the candidate experience they received would influence their decision to apply to or accept a job offer from the company.

• Employee Retention

Finally, employee retention is an essential metric in evaluating the success of a remote tech hiring model. Retaining top talent is crucial for any company’s success. It reduces the costs associated with turnover and ensures the company has the necessary skills and knowledge to achieve its goals. 

According to a study, the average cost of replacing a salaried employee is six to nine months’ salary. By measuring retention rate, companies can identify any issues with their remote work policies or work culture that may lead to high turnover rates. 

• Application Complete Retention

Application completion rate is a crucial metric to track while remote tech hiring. According to a report, the average completion rate for online job applications is just 50%. 

Half of the applicants who start an online job application do not complete it. For companies hiring remote tech talent, this could indicate that the application process is too complicated or time-consuming.

By tracking the application completion rate, organizations can identify and address any issues in their application process, ultimately leading to higher-quality applicants and more successful hires.

• Optimum Productivity Level (OPL) 

The cost of getting to the Optimum Productivity Level (OPL) is a metric often overlooked but can significantly impact the success of hiring models. OPL refers to the point at which a new hire reaches their maximum level of productivity. 

According to a study, it takes an average of 28 weeks for new employees to achieve their OPL, translating to an average cost of $26,041.

This cost may be higher for remote tech hires as they may require additional equipment, training, and software to work effectively. By tracking the cost of achieving OPL, organizations can identify areas where they can streamline their onboarding process and reduce costs while ensuring that new hires reach their maximum productivity level as quickly as possible.

• Channel Cost

Sourcing channel cost is another essential metric to consider when tracking hiring metrics. This metric refers to the cost of using different sourcing channels to attract candidates, such as job boards, social media, employee referrals, and recruiters. 

According to a report, employee referrals are the most cost-effective sourcing channel, with an average cost per hire of $1,000. At the same time, recruiting agencies are the most expensive, with an average price per hire of $4,285. 

By tracking sourcing channel costs, companies can identify which channels are most effective for their remote tech hiring needs and allocate resources accordingly. This can lead to a more cost-effective hiring process and better-quality candidates.

• Recruitment Funnel Effectiveness 

Recruitment funnel effectiveness is an important metric to consider when evaluating the success of remote tech hiring. This metric measures the effectiveness of each stage of the recruitment process, from the initial interaction to the final offer. 

According to a report, the average conversion rates for each stage of the recruitment funnel are as follows: application completion (50%), phone screen (25%), in-person interview (10%), and offer acceptance (90%).

By tracking the recruitment funnel effectiveness, companies can identify any stages where candidates may be dropping out or losing interest and make improvements to the hiring process. This can lead to a more efficient hiring process and better-quality candidates.

• Candidate Experience

Candidate experience is a crucial metric to consider when evaluating the success of remote tech hiring. According to a report, 68% of candidates with a positive candidate experience were more likely to accept a job offer. In comparison, 55% of candidates who had a negative candidate experience were less likely to accept an offer. 

Additionally, candidates with a positive experience were more likely to refer others to the company. By tracking candidate experience, companies can identify any pain points in the hiring process and make improvements to ensure a positive experience for all candidates. This can again lead to a better employer brand, increased candidate referrals, and better quality hires.

• Candidate Job Satisfaction

Candidate job satisfaction is an important metric to consider when evaluating the success of remote tech hiring. According to a report, companies with high employee satisfaction outperform their competitors by 122%. Additionally, satisfied employees are more likely to stay with the company long-term, reducing turnover costs. 

By measuring candidate job satisfaction, companies can identify areas where employees may be experiencing dissatisfaction and improve the work environment, culture, and benefits package. It can lead to a more engaged and productive remote tech team, ultimately improving the company’s bottom line.

• First-Year Attrition

First-year attrition is an essential metric to consider when evaluating the success of remote tech hiring. According to a report, the average cost of losing an employee in the first year is three times their salary. This cost includes recruitment, onboarding, training expenses, and lost productivity. 

By tracking first-year attrition, companies can identify any patterns or trends in employee turnover and improve their hiring process, including better candidate selection and more effective onboarding. It can lead to a more stable and productive remote tech team, reducing costs and improving the company’s bottom line.

Conclusion

In conclusion, measuring the success of a tech hiring model in 2023 requires a comprehensive approach that goes beyond simply filling open positions. Companies should evaluate their recruitment strategies based on the key performance indicators (KPIs) mentioned above. 

It’s important to continuously analyze and adjust the hiring process to ensure it aligns with the company’s objectives and meets the needs of the tech industry’s evolving landscape.

Corporations should consider recruitment strategies when employing remote technology staff because remote work has become essential to the tech industry. A well-executed remote hiring strategy can provide access to a broader talent pool, reduce geographical barriers, and improve employee satisfaction and retention. 

Remote technology staff can also help organizations save on office space and equipment costs while increasing productivity and flexibility. Companies can stay competitive in the rapidly changing tech industry by adopting effective remote recruitment strategies.