Recruiting efficiency can be measured. So can quality. The problem? Many companies don't do it. Or they simply don't do it well enough.
Many HR departments are currently under enormous pressure: Budgets are shrinking, the shortage of skilled workers remains – and at the same time, expectations are growing to find the “right” people faster and cheaper in the new AI world. But what is the right benchmark for efficiency? And how can quality be reliably assessed?
In our previous insight “Data-driven recruiting – the key strategy for reducing costs in HR,” we showed how data-based strategies reduce recruiting costs and make processes more transparent.
This article now goes one step further: Which key figures specifically help to keep an eye on quality and efficiency – especially when budget and time are tight? And how can these figures be used effectively in everyday life?
Without clear control, recruiting remains susceptible to delays, wasted effort, and wrong decisions.
The right KPIs in times of crisis
Efficiency KPIs such as time to fill, cost per hire, and applicant to hire ratio show where processes are stalling, channels are failing, or unnecessary costs are being incurred.
If you know these figures, you can take targeted countermeasures: Why does it take twice as long to fill position X? Which platform generates lots of applications but hardly any qualified interviews? And where are the opportunity costs of unfilled positions adding up?
These key figures help you identify blind spots – especially when budget and time are tight. Cost per hire, for example, reveals how efficient the recruitment channels used really are (there is also the sourcing channel effectiveness metric). A high value can indicate ineffective sourcing, overly long processes, or a lack of matching. And time to fill is not just a time indicator—it shows whether the interaction between the specialist department, HR, and candidates is really running smoothly.
But speed and costs only tell half the story. Those who optimize for speed alone risk hiring the wrong people. That's why a second dimension is needed: qualitative KPIs.
This naturally brings quality of hire into focus – in other words, how well new employees actually perform. This is often determined by target achievement, feedback from executives, or retention after 6 or 12 months. The new hire turnover rate (early attrition) is also a critical metric: if new colleagues leave early, this indicates matching problems or false expectations. The satisfaction of hiring managers provides additional clues as to whether candidates are a good fit in terms of skills and culture.
McKinsey points precisely to this connection. In companies with strong talent performance, productivity, innovation, and long-term value contribution increase significantly – but only if the quality of new hires is systematically measured and used as a control variable (McKinsey 2024).
Time to fill alone is not enough. KPIs that provide insights into performance, retention, and team impact—such as quality of hire or time to productivity across defined onboarding periods—are crucial.
Our colleagues at alphacoders also emphasize this in their Recruiting Analytics article: The true value lies in linking performance data with process metrics.
Only when efficiency and quality metrics are viewed together does a complete picture emerge – and a reliable basis for decision-making for HR and management (alphacoders 2023a).
But how can these insights be translated into better recruiting decisions without compromising quality?
Levers for greater efficiency without compromising quality
Cost efficiency in recruiting means investing specifically where quality and speed come together. If you know your KPIs, you can do just that – and achieve a big impact with small adjustments.
A key lever lies in the choice of recruiting channels. Instead of cutting budgets across the board, it's worth taking a look at the Source of Hire and Sourcing Channel Effectiveness metrics: Which channels deliver candidates who are not only hired quickly, but also stay? alphacoders shows that data-based channel analysis in tech recruiting already leads to significantly better conversion rates – for example, when below-average sources are sorted out early on and strong ones are specifically reinforced (alphacoders 2023b).
A second lever: optimizing the candidate journey. Long waiting times, poor communication, or unclear requirements not only lead to dropouts, but also reduce later loyalty to the company. By measuring and regularly evaluating drop-off rates in the funnel, you can identify critical items early on and take simple countermeasures: automated confirmations, more precise requirement profiles, or clearer feedback in the interview process (CareerTeam 2025).
Internal collaboration between HR and specialist departments also has a direct impact on efficiency. In its analysis, McKinsey emphasizes that companies with clearly defined roles, coordinated processes, and data-based feedback loops recruit faster and more accurately (McKinsey 2024). For example, if hiring managers provide structured feedback on application documents before the interview, the quality of the shortlists increases and the entire process is noticeably shortened.
Last but not least, technology helps to save time without compromising on quality. Tools such as applicant tracking systems or integrated analytics dashboards not only enable clean data collection, they also provide immediately usable reports on key KPIs. For example, metrics such as interview to hire or time to fill can be monitored on a weekly basis and compared with target values.
Important here: quality remains measurable – if it is taken into account from the outset. Those who link performance feedback from the probationary period with early process data can quickly identify which adjustments really work.
When processes become transparent, resources can be deployed where they have the greatest impact.
From KPIs to action – how numbers make an impact
In many organizations, the relevant data has long been available – what is missing is its consistent use. Instead of deriving decisions from numbers, they are often simply documented. But this is precisely where the difference between reporting and control begins.
Recruiting KPIs show where processes are stalling. Where candidates drop out. Where the match isn't right. Those who recognize these patterns can make targeted adjustments – even with limited resources.
It's not the quantity of metrics that matters. All you need is a precise set that illuminates both sides of everyday recruiting: efficiency and quality. The selection depends on the maturity of the organization and what needs to be improved.
We recommend a lean set of KPIs that covers both sides of recruiting: efficiency and quality. Depending on the situation, a few clearly defined metrics are often sufficient:
- 2–3 efficiency KPIs, such as time to fill, cost per hire, or application-to-interview conversion rate.
- 2–3 qualitative KPIs, such as quality of hire, retention after 6 months, or “soft” KPIs such as hiring manager satisfaction
It is important that these values are evaluated regularly, assigned clear targets, and actively used in everyday recruiting. Only then will they be effective – and help to allocate resources where they will have the greatest impact.
McKinsey refers to this as a measurable “return on talent” and shows how data-driven management can significantly increase productivity in recruiting (McKinsey 2024). alphacoders emphasizes that only those who analyze efficiency and quality together can identify the real levers in the process (alphacoders 2023a & 2023b).
Conclusion and outlook
Clearly defined key performance indicators make the difference between operational chaos and strategic management. A precise set of KPIs provides the desired focus and creates the conditions for effective decisions.
Companies that regularly measure both efficiency and quality are quicker to recognize what works and where resources are being wasted.
Now is a good time to question your own set of KPIs: Which figures deliver real added value? What is analyzed regularly – and what remains in the table graveyard? The answers to these questions will determine how effective HR will remain in the future.
Would you like to manage your recruiting processes more effectively – without compromising on quality or candidate experience? Foxio supports you in establishing a lean, effective set of KPIs and implementing data-driven decisions in practice. With an analytical eye, technical expertise, and a clear understanding of modern recruiting processes.
Let's work together to find out where your biggest levers are – and how you can get more out of your recruiting data.
We look forward to hearing from you.
Sources
- alphacoders (2023a): Recruiting Analytics: Measure, analyse and optimise
- alphacoders (2023b): Technology recruitment: New benchmarks and metrics in tech recruiting
- CareerTeam (2025): Candidate Experience = Corporate Culture in Real Time – Why many fail
- Foxio Consulting (2023): Data-Driven Recruiting – The key strategy for reducing the HR costs
- McKinsey & Company (2024): Increasing your return on talent: The moves and metrics that matter.
Further reading
In our previous insight, we show you how to set up your recruiting processes based on data and optimize them technically: “Data-driven recruiting – the key strategy for reducing costs in human resources.”It covers tools, automation, and building a real data strategy.
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