As a company grows, the management team must balance the appropriate quantity and quality of employees. Many recruiters hear that the most serious impediment to growth is being able to hire the right employees and grow the company’s headcount according to plan.
While many startups measure their growth evolution by the NUMBER of employees, at a certain point (typically 50 employees), companies must consider measuring retention of quality employees.
OpenView Labs has developed a set of 10 metrics that will give a startup a much more comprehensive picture of their hiring, retention, and team development practices.
- Annual turnovers: Number of employees who leave the company each year.
- Annual voluntary turnovers: Number of employees who leave the company voluntarily.
- Annual performance-related terminations: Number of employees who are asked to leave because of low performance
- Number of new positions available
- Number of positions filled: New positions, backfills, and internal promotions
- Number of new positions filled
- Average tenure of employees
- Average cost of hire: Including job posting costs, sign-on bonuses, external recruiter fees, internal recruiter compensation, internal time cost for interviewing and deliberation, etc.
- Average time to hire: From job posting to position filled.
- Number of internal promotions
It’s important not to inflate the numbers a company collects to show rapid growth or impressive retention rates. Collecting and analyzing accurate data will create a positive culture — one used to recruit the best and the brightest.