Often failing to assess actual hiring success are conventional hiring measures like cost-per-hire and time-to-hire. Organizations need Key Performance Indicators (KPIs) reflecting the success of their skills-based hiring strategy in finding, hiring, and keeping the greatest talent as they change.
This blog examines the most important KPIs for skills-based hiring success and how they assist businesses in improving their recruiting plans.
1. Rate of Skill Match
What it Measures: How well candidates' talents match job needs. Why it Counts: A good match rate shows that pre-hire assessments are correctly choosing the right candidates. Measure alignment by comparing assessment scores to post-hire performance evaluations to monitor it.
2. Hiring Efficiency: Time-to-Fill and Time-to-Hire
The amount of time needed to find and onboard the ideal candidate is what it measures.
Importance: By giving competence above résumé scanning priority, skills-based recruiting simplifies hiring.
How to Keep Track:
Measures the number of days from job posting to offer acceptance.
Tracks the length of time between application and employment decision, time-to-hire.
Decreasing these indicators points toward a quicker and more successful recruitment procedure.
3. Rate of pre-hire assessment completion
What it measures: The proportion of applicants who finish skill assessments. A low rate might point to a long or unclear testing procedure.
How to follow it:
Count the proportion of candidates invited versus those who finish the test.
Find drop-off points throughout the evaluation procedure to maximize the experience.
4. Post-hire Performance Correlation
It measures how well new hires perform relative to their pre-hire assessment results.
Why it Matters: A good correlation between test scores and performance shows that skills-based hiring chooses the appropriate applicants.
Track it using comparing new hires:
Assessment scores (three to six months)
Feedback from managers
5. Retention rate among first-year students
The percentage of fresh hires still working for the company for at least one year.
Why It Matters: A high retention rate means staff members were a good fit for their roles.
How to Track It: Track retention trends before and after using skills-based hiring.
Businesses with excellent skills-matching procedures sometimes have greater employee retention since recruits feel more qualified and interested in their jobs.
6. Skill-Based Hiring Candidate Diversity
It measures the range of new hires' backgrounds, experiences, and degrees of schooling. Eliminating bias in favor of conventional qualifications will help to diversify hiring based on skills.
How to follow it:
Compare metrics for pre- and post-skills-based hiring variety.
Investigate whether a wider pool of applicants is hired according on skills rather than grades or previous employment titles.
7. Internal Mobility Rate and Promotions
What it Measures: The proportion of new hires who rise within the company. Why it matters: Skills-based hiring guarantees people are equipped to lead and grow.
How to Track It:
Count the promotions of hires over a given period (e.g., 1–2 years).
Based on skills rather than years, monitor how many people move into different jobs.
A high mobility rate implies that workers are both flexible and competent for their present jobs.
In conclusion, setting the right KPIs guarantees that skills-based recruitment produces better quality candidates, increased retention, and greater organizational success. By monitoring indicators such as skills match rate, assessment completion, post-hire performance, and retention, businesses may constantly improve their hiring policies for long-term advantages.
