In today’s competitive job market, everyone’s talking about time-to-fill as the go-to metric for executive search. But focusing on just one number can distort the bigger picture. It could lead to quick fixes that don’t pan out in the long run. We need to take a holistic approach to recruiting metrics to ensure we’re setting clients up for long-term success.
Key Metrics to Consider
- Time-to-fill measures the number of days between when a job opening is posted and when the offer is accepted. A shorter time to fill can indicate an efficient hiring process, but rushing to fill positions may lead to poor candidate fit or higher turnover. At Grey, we place less emphasis on how fast we can fill the role and focus more on finding the perfect fit. We also pride ourselves on being transparent with our timelines, communicating often with our clients on where we are in our process and any challenges that need to be addressed.
- Offer acceptance rate is the percentage of candidates who accept job offers. A high offer acceptance rate indicates that the role and compensation were planned well. A low acceptance rate could mean a misalignment in expectations or strong competition in the job market. Generally, an offer acceptance rate of 80% or higher is considered strong. For C-suite and other senior roles, a higher offer acceptance rate of 90% makes sense given the extensive vetting and negotiation before a formal offer is made.
- Cost-per-hire is the amount clients will pay to find a new employee. While search fees can be a significant investment, they reflect the value of securing the right talent for your organization. At Grey, we maintain efficient processes to optimize costs while delivering our signature white-glove service across all positions – from individual contributors to executive roles. Unlike traditional firms that may reserve premium service only for executive searches (where fees typically range from 30-35% of the placed executive’s first-year compensation), we believe every search deserves the same high-touch, thorough approach. The most important thing is delivering on our promise of exceptional service, regardless of the role level.
- Retention rates measure how long employees stay with a company. High retention rates signal effective strategy and search practices. Poor retention may indicate that the candidates hired were not well-suited for the role, or that there are issues with company culture. This is why we prioritize culture-based candidate selection. Evaluate retention rates for top-level after at least 3 years. A retention rate of 90% or higher at this point indicates successful placements. At Grey, we average around 98% yearly on individual contributor salaried roles and 100% on our executive roles. We also have 90%+ on candidates staying a year+ to multiple years with our clients.
This is far from a comprehensive list. We also evaluate outcomes, including hiring manager satisfaction, employee satisfaction and quality of hire to get an even fuller picture of recruiting success.
Best Practices for Measuring and Interpreting Executive Recruiting Metrics
Beyond the individual numbers, we have a few key strategies when using all this data.
- Look at the bigger picture. No single metric can fully capture recruiting success. I’ve seen instances where companies focused so much on fast hiring that they turned to database mining which typically only surfaces resumes that perfectly fit the job description versus those that are great culture fits. Eventually, this leads to costly turnover when those hires don’t stick around. A broader view that balances speed, cost, and retention is crucial for long-term success.
- Customize metrics for your organization, industry or role. Executive recruiting isn’t a one-size-fits-all process. Depending on your organization’s needs, company size, and the industry, benchmarks for success will vary. For example, startups might prioritize speed to fill roles that enable growth, while established companies might emphasize long-term fit and retention.
- Incorporate feedback. Numbers are helpful but always supplement them with insights from the people involved. This could include feedback from the hiring manager, other executives, board members, or other key stakeholders in the search process.
- Review and adjust regularly. The market is always changing. Regularly reassess your metrics and benchmarks to ensure they align with current market conditions and your organization’s strategic goals.
At Grey Search + Strategy, we know that finding the right executive is more art than science. We use these helpful metrics, but we also bring deep experience and understanding of organizational dynamics to our searches. We pride ourselves on raising the bar on every search with a variety of methods, tools and resources. Our approach ensures that we find candidates who look good on paper and leaders who will drive your organization’s success for years to come.
