12 Recruitment KPIs To Improve Your Hiring Process

Hiring managers aren’t just imagining it — the talent pool really is shrinking. Nearly 69% of employers say they can’t find candidates with the right skills, setting a new record for the past 15 years.

If you lead HR or talent acquisition, you’re probably feeling that pressure firsthand. Maybe you're frustrated by candidate searches that yield few results. Or you've noticed your current team isn't performing well, and you're wondering, “How did we get here?”

It might be time to revisit how you build your teams in the first place. After all, the people you recruit today will shape your organization tomorrow — and the better your retention, the more critical each hiring decision becomes.

So how well is your recruitment process actually serving you?

The answer starts with data. Organizations that benchmark key recruiting metrics are better equipped to improve outcomes of their hiring process. But recruitment requires more than a standard operating procedure (SOP). You need a holistic approach focused on:

• Building a healthy talent pipeline
• Strengthening your employer brand
• Linking hiring decisions to long‑term retention and ROI

The KPIs (key performance indicators) you choose reveal where your recruitment process is strong, and where it might need attention. Let’s break down the essential recruitment KPIs you should be tracking, why they matter, and how to interpret them to improve hiring efforts from every angle.

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1. Time-to-Hire and Time-to-Fill

These two metrics are often mentioned together, but they track different parts of your hiring process.

Time-to-hire measures how quickly a candidate moves through your recruitment pipeline — from the moment they apply to the moment they accept your offer. It answers: Once someone enters our process, how fast can we bring them on board?

Time-to-fill starts even earlier — from when the job is posted (or when it is requested) until when a candidate accepts the offer. This gives you a full-cycle view of how long it takes to fill a position once it is created.

Here’s how to calculate each one:

• Time-to-Hire = Offer Acceptance Date – Application Date
• Time-to-Fill = Offer Acceptance Date – Job Posting Date

For example, say a job was posted on January 1. A candidate applied January 10, and accepted the offer February 15. In this case, time-to-hire would be 36 days. Time-to-fill would be 45 days.

Here’s a look at what industry averages might look like for each metric:

*NOTE: The above figures are estimates based on a variety of reports and may or may not accurately reflect industry averages.

TIP: Grouping this data by role type can reveal key insights. For instance, searches for executive roles may take 60+ days, while entry-level roles tend to fill faster.

Why They Matter

Both KPIs are about efficiency, but they tell different stories. A long time-to-fill may signal internal roadblocks—like slow approvals or delayed job postings. A longer time-to-hire, on the other hand, often points to bottlenecks during interviews or misalignments between the hiring team and candidates. Either way, a slow hiring process increases costs and risks losing top talent to faster-moving competitors.

But speed alone isn’t the goal. Rushed decisions can lead to mis-hires and higher turnover. Instead, these metrics work best when paired with checkpoints (like assessments or structured interviews) to maintain quality.

With Criterion, you can track both KPIs automatically. Filter by recruiter, role type, or department to identify where delays occur, then take targeted action. You can even connect these timelines to performance data to see which stages influence quality the most.

2. Candidate Communication

Candidate communication metrics track how promptly and consistently your team engages with applicants during the hiring process. Most organizations focus on response time (how quickly you reply to applications or inquiries) and cadence (how often you check in with candidates throughout their journey).

While there’s no universal formula for this KPI, you can measure aspects like:

• Average number of hours between a candidate’s message and your team’s reply
• Number of candidate touchpoints per week
• Percentage of active candidates contacted within a set time frame (e.g. 7 days)

For example, you might set a benchmark to respond to every applicant within 48 hours and provide weekly status updates to candidates in the interview phase.

Why They Matter

Clear and timely communication is one of the easiest ways to improve candidate experience. It also has a ripple effect, strengthening your employer brand and increasing offer acceptance rates.

Reports suggest that consistent communication is often seen as a sign of a trustworthy, well-run organization. Even rejected candidates tend to rate their experience higher when they’re kept in the loop.

Good communication also speeds up your hiring process. In fast-moving fields like construction or engineering, delays can cost you great candidates. When candidates hear back quickly, they stay engaged and the pipeline keeps moving.

With Criterion, you can automate reminders to keep in touch with candidates via Instant Message, Video Chat, or SMS, all in one platform. This way, every candidate feels valued and engaged throughout the hiring journey, while keeping all your data in one place for recruiting audits and reporting.

3. Number of Qualified Candidates

This KPI measures how many applicants in your recruiting pipeline meet the minimum qualifications for a role. It gives you a clearer picture of pipeline volume and quality.

To calculate your number of qualified candidates, set a clear baseline for what counts as "qualified." Note any required certifications, experience levels, etc.

You can also use quality of hire (QoH) to validate your definition of a “qualified” candidate. For example, if most hires who passed your initial screening go on to perform well and stay with the company, that’s a sign your qualification criteria are on target. But if QoH scores are consistently low despite a strong pool of “qualified” applicants, it may be time to revisit your definition.

From there, track your total number of applicants and how many of them meet the qualification threshold. You can express the final figure as a percentage with this formula:

(# Qualified Candidates ÷ Total Applicants) × 100

For example, if 100 people apply for a position, but only 20 meet the basic criteria, your qualified candidate rate is 20% (which is probably a bit too low).

Why It Matters

Essentially, your number of qualified candidates is a sourcing metric. If the qualified number is low, your job postings may not be reaching the right audience — or the job descriptions might be attracting the wrong applicants. It can also signal market shifts, like a growing skills gap or tighter competition for talent.

A large applicant pool might look impressive, but if only a small fraction are truly qualified, your team might be wasting time filtering and screening. That slows down time-to-hire, increases recruiter workload, and raises the risk of rushed, poorly fit hires.

In sectors like construction, a shortage of qualified candidates for skilled roles can delay critical projects. For nonprofits, limited recruiting budgets make it even more important to attract the right applicants upfront.

With Criterion, you can tag qualified candidates based on your own criteria and generate custom reports that show exactly how many applicants are viable. From there, you can segment the data by role, location, source, and more to identify weak pipelines early — and act before hiring delays set in.

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4. Screening-to-Interview Ratio

The screening-to-interview ratio measures the percentage of applicants who pass your initial screening and move forward to an interview. This demonstrates how selective your initial screening process is (and if it’s calibrated correctly). Initial screenings shouldn’t be too restrictive or too loose. They should simply filter out unqualified applicants and efficiently move qualified ones forward.

To calculate this ratio, you’ll need:

• Number of candidates screened
• Number of candidates invited to interview

The formula is straightforward:

Screening-to-Interview Ratio = (Candidates Interviewed ÷ Candidates Screened) × 100%

For example, if you screened 100 candidates and only invited 5 to interview, your ratio is 5% (or 1:20). Depending on your industry and the position, that may be a bit too high or too low. Generally 2–5% is normal for high-volume roles, and 8–15% is typical for specialized positions. If your ratio consistently falls outside these benchmarks, it may be time to adjust job descriptions or screening criteria.

Why It Matters

Your screening-to-interview ratio shows whether you’re bringing the right people to the table (or wasting time on the wrong ones).

• Too low (e.g., < 2–3 % for frontline roles): You’re interviewing only a tiny amount of applicants out of a large set. That may signal over-screening, misaligned knockout questions, or job ads that attract mismatched talent.
• Too high (e.g., > 15–20 % for niche or technical roles): You may be interviewing a bit too much. This suggests your initial filters are too loose, which slows hiring teams and can dilute quality.

This KPI also directly impacts other recruiting metrics such as time-to-fill. A lower ratio means fewer interviewees, which could potentially increase time needed to source more candidates.

5. Offer-Acceptance Rate

Offer-acceptance rate measures the percentage of job offers that candidates accept. In other words, when your team decides to hire a candidate, how often do they say yes?

The calculation is straightforward:

Offer-Acceptance Rate = (Offers Accepted ÷ Offers Made) × 100%

So, if you made 10 offers and 8 were accepted, your acceptance rate is 80%. You can use this in conjunction with compa-ratio, which measures your compensation for certain roles against market standards for the same position and industry. If your acceptance rate is low, compensation relative to market (compa-ratio) could be a major factor.

That’s why it’s important to benchmark your acceptance rate against industry norms (typically around 85–90%). Investigate if acceptance drops below 80%, especially for critical roles.

Why It Matters

A low offer-acceptance rate signals issues at a critical hiring stage. By the time you extend an offer, you’ve already invested time and resources. Losing candidates here means starting over and prolonging the vacancy, which drives up overall recruiting costs.

Tracking this KPI helps you spot patterns: What percentage of offers are accepted vs. declined? Repeated rejections may point to issues like non-competitive compensation, misaligned expectations, or a weak candidate experience. On the other hand, a high acceptance rate (85–90% or more) signals that your offer packages and hiring process are well-aligned with candidate expectations — making your pipeline more efficient and predictable.

If possible, track why candidates decline. Set up a quick follow-up survey when offers are turned down — ideally a simple, optional question with multiple choice options (e.g., “accepted another offer” or “compensation too low”) plus a comment box. This gives you actionable insights to adjust your strategy.

6. Interview-to-Offer Ratio

The interview-to-offer ratio measures how many interviewed candidates receive job offers. It reflects how selective and efficient your interview stage is, which can help you assess whether your process is identifying the right talent or wasting time.

Here is a simple formula:

Interview-to-Offer Ratio = (Number of Offers Sent ÷ Number of Interviews) × 100%

For example, if you interviewed 10 candidates and extended 3 offers, your interview-to-offer ratio is 30% (or roughly 3 interviews per offer). That’s a healthy ratio indicating good balance between selectivity and efficiency. Ideally, around 30–50% is considered healthy. According to benchmarks by the National Association of Colleges and Employers (NACE), the average sits near 47.5%, meaning about two interviews per offer.

TIP: Monitor this ratio closely by role or department. If your IT team consistently interviews eight candidates per offer while your sales team interviews only three, you can more easily isolate issues.

Why It Matters

Your interview-to-offer ratio reflects the efficiency and accuracy of your interview process. A low ratio may indicate you're interviewing too many unqualified candidates or that your bar is set too high. A very high ratio (most interviews lead to offers) could mean you’re moving too fast or not vetting enough candidates for comparison.

You should also compare this to your offer acceptance rate. If you’re extending offers at a high rate but many are declined, your interview process might be strong — but other issues (like compensation or communication) could be problematic.

A balanced ratio means you’re spending a decent amount of time on the right candidates. This reduces recruiter and manager workload and speeds up time-to-fill. When optimized, it improves hiring outcomes without sacrificing quality.

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