Focusing on the Right Metrics for Lean...
Transcript of Focusing on the Right Metrics for Lean...
![Page 2: Focusing on the Right Metrics for Lean Hiringleanstartup.co/2017-conference/wp-content/uploads/sites/17/2017/1… · Aline Lerner aline@interviewing.io @alinelernerLLC. What is lean](https://reader036.fdocuments.in/reader036/viewer/2022071107/5fe10409aefe63636434fd53/html5/thumbnails/2.jpg)
What is lean hiring, and why do metrics matter?
![Page 3: Focusing on the Right Metrics for Lean Hiringleanstartup.co/2017-conference/wp-content/uploads/sites/17/2017/1… · Aline Lerner aline@interviewing.io @alinelernerLLC. What is lean](https://reader036.fdocuments.in/reader036/viewer/2022071107/5fe10409aefe63636434fd53/html5/thumbnails/3.jpg)
Some potential goals
Reduce costs
Hire more
Hire faster
Increase diversity
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To properly measure hiring, you need a funnel
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The actual funnel
Technical Phone Screen
Onsite
Offer
Hire
Recruiter Call
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My favorite metric… cost per hire (CPH)
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Total External Costs + Total Internal CostsCost per Hire ($) =
Total Number of Hires
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Total External Costs + Total Internal CostsCost per Hire ($) =
Total Number of Hires
This is what you care about!
![Page 9: Focusing on the Right Metrics for Lean Hiringleanstartup.co/2017-conference/wp-content/uploads/sites/17/2017/1… · Aline Lerner aline@interviewing.io @alinelernerLLC. What is lean](https://reader036.fdocuments.in/reader036/viewer/2022071107/5fe10409aefe63636434fd53/html5/thumbnails/9.jpg)
Total External Costs + Total Internal CostsCost per Hire ($) =
Total Number of Hires
Hard to compute and meaningless without time spent!
This is what you care about!
![Page 10: Focusing on the Right Metrics for Lean Hiringleanstartup.co/2017-conference/wp-content/uploads/sites/17/2017/1… · Aline Lerner aline@interviewing.io @alinelernerLLC. What is lean](https://reader036.fdocuments.in/reader036/viewer/2022071107/5fe10409aefe63636434fd53/html5/thumbnails/10.jpg)
Total External Costs + Total Internal CostsCost per Hire ($) =
Total Number of Hires
![Page 11: Focusing on the Right Metrics for Lean Hiringleanstartup.co/2017-conference/wp-content/uploads/sites/17/2017/1… · Aline Lerner aline@interviewing.io @alinelernerLLC. What is lean](https://reader036.fdocuments.in/reader036/viewer/2022071107/5fe10409aefe63636434fd53/html5/thumbnails/11.jpg)
The actual funnel
Technical Phone Screen
Onsite
Offer
Hire
Recruiter Call
![Page 12: Focusing on the Right Metrics for Lean Hiringleanstartup.co/2017-conference/wp-content/uploads/sites/17/2017/1… · Aline Lerner aline@interviewing.io @alinelernerLLC. What is lean](https://reader036.fdocuments.in/reader036/viewer/2022071107/5fe10409aefe63636434fd53/html5/thumbnails/12.jpg)
![Page 13: Focusing on the Right Metrics for Lean Hiringleanstartup.co/2017-conference/wp-content/uploads/sites/17/2017/1… · Aline Lerner aline@interviewing.io @alinelernerLLC. What is lean](https://reader036.fdocuments.in/reader036/viewer/2022071107/5fe10409aefe63636434fd53/html5/thumbnails/13.jpg)
![Page 14: Focusing on the Right Metrics for Lean Hiringleanstartup.co/2017-conference/wp-content/uploads/sites/17/2017/1… · Aline Lerner aline@interviewing.io @alinelernerLLC. What is lean](https://reader036.fdocuments.in/reader036/viewer/2022071107/5fe10409aefe63636434fd53/html5/thumbnails/14.jpg)
Click here to try it yourself!
![Page 15: Focusing on the Right Metrics for Lean Hiringleanstartup.co/2017-conference/wp-content/uploads/sites/17/2017/1… · Aline Lerner aline@interviewing.io @alinelernerLLC. What is lean](https://reader036.fdocuments.in/reader036/viewer/2022071107/5fe10409aefe63636434fd53/html5/thumbnails/15.jpg)
Thinking about hiring this way frees you up to quantify anything and iterate on it confidently!
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Example 1: The hidden cost of agencies
Close rates?
Interview conversion rates?
You’re paying double!!
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Example 2: The value of iterating on your interview questions
• Iterate on your questions because…
Just a 10% gain in conversion at the phone screen stage is worth $4K!
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• Recruiter makes $75/hour and screens a resume in 1 min
• Strong brand — 10% conversion to screen, so 10 min for 1 viable candidate
• Weak brand — 1% conversion to screen, so 100 min for 1 viable candidate
Example 3: What is the value of employer branding?
WageAnnual Value of Branding 60
(MinutesWeak - MinutesStrong) * * 350=
~$40K if you thumbs up just one resume per day
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Returning to hiring goals from the beginning…
• Cut underperforming channels
• The step that cuts the most people should always be at the beginning
• More time spent doing targeted, personal outreach pays off in much better conversion rates at the bottom of the funnel
• Iterate on your interview questions
• Invest in branding!Reduce costs
Reduce costs
Increase diversity
Increase diversity
Reduce costs
Hire faster Hire more
Hire faster
Increase diversity
Reduce costs
Hire faster