The 5 New Recruiting KPIs: Beyond Time-to-Hire and Cost-per-Hire

For decades, "Time-to-Hire" and "Cost-per-Hire" have been the gold standard for recruiting metrics. While they remain important, a 2025 Gartner Report highlights that they only tell part of the story, measuring process efficiency but not its effectiveness or strategic impact.

In 2025, top-tier talent acquisition teams are adopting a more sophisticated set of Key Performance Indicators (KPIs). These new metrics help leaders understand the true ROI of their hiring efforts and provide a framework for continuous improvement.

1. Quality of Hire

This is the most critical, yet often hardest to measure, KPI. It directly answers the question: "Are we hiring good people who stay and perform?"

How to Measure: A combination of factors, typically assessed at the 12-month mark.
- Performance Review Scores: Does the new hire meet or exceed expectations (e.g., a score of 4/5 or higher)?
- Hiring Manager Satisfaction: A quarterly pulse survey to the manager. Leading companies see a 90%+ satisfaction rate.
- First-Year Retention Rate: Did the new hire stay for at least 12 months? The industry average is 82%; aim for 90%+.
Why It Matters: A low cost-per-hire is a vanity metric if the new employee is a poor performer or leaves within a few months, which can cost up to 2x their annual salary to replace.

2. Source of Influence vs. Source of Hire

We all track where a hire came from (e.g., LinkedIn, referrals). But what about the touchpoints that influenced their decision?

How to Measure: Use your ATS/CRM to track all interactions. In your candidate survey, ask: "Where did you first hear about us?" and "What content or interactions most influenced your decision to apply?"
Why It Matters: This reveals the true ROI of your employer brand. Case Study: BrightDesk, a SaaS company, found that while 60% of engineers applied via their careers page, 45% of them were influenced by their engineering blog. This insight led them to double their investment in technical content, which became their top source of high-quality passive candidates.

3. AI Time-Savings Value (ATSV)

This metric quantifies the financial ROI of your automation and AI tools, going beyond just hours saved.

How to Measure:
1. Benchmark: Calculate manual screening time per role (e.g., 10 hours).
2. Calculate Savings: An AI tool reduces this to 2 hours, saving 8 hours.
3. Assign Value: Multiply saved hours by the recruiter's hourly rate. 8 hours x $45/hour = $360 saved per role.
4. The Formula: (Hours Saved x Recruiter Hourly Rate) x Number of Roles = ATSV
Why It Matters: This provides a concrete, dollar-value answer to the question, "What is the ROI of our new AI tool?" It's a powerful metric for securing budget.
- Pro Tip: Download our Excel template to calculate your own ATSV.

4. Candidate Net Promoter Score (cNPS)

The candidate experience is paramount. The cNPS measures how likely your applicants are to recommend your company as a place to apply.

How to Measure: Send a one-question survey at key stages: "On a scale of 0-10, how likely are you to recommend a friend apply to [Your Company]?"
Why It Matters: A negative candidate experience can severely damage your employer brand. Companies with a positive cNPS (50+) fill roles 15% faster because a strong reputation attracts more high-quality, inbound applicants.

5. Funnel Conversion Rate Analysis

This isn't a single KPI, but a family of them. It involves tracking the percentage of candidates who move from one stage of the hiring funnel to the next.

How to Measure: Your ATS should report on this. Key rates to watch:
- Application to Screen
- Screen to Hiring Manager Interview
- Hiring Manager Interview to Final Round
- Final Round to Offer
- Offer to Acceptance (Benchmark: 85-90%)
Why It Matters: This analysis pinpoints bottlenecks. A low Screen to Hiring Manager Interview rate (e.g., less than 20%) might indicate a misalignment between the recruiter and the hiring manager. A low Offer to Acceptance rate (e.g., less than 80%) could signal that your compensation packages are 5-10% below the market rate.

From Metrics to Strategy

Tracking these KPIs is just the first step. The real power comes from analyzing the trends over time and using the insights to have strategic conversations with business leaders. By moving beyond the basics, you can transform your recruiting function from a cost center into a data-driven engine for growth.

TalentLumia is an AI-powered candidate outreach and evaluation software. Visit now to accelerate your referral bonus acquisition.