The top four metrics that startups across all stages are tracking include: pass-through rates, reasons for offer decline, candidate experience, and attrition
A good benchmark for startups is 10-20% attrition with 5-10% being non-regretted. Note: if your startup is <50 people large, your attrition rate should be lower.
💡 Tip for minimizing regretted attrition: In addition to accessing for technical skills and business abilities, ensure that the candidate’s motivations are aligned with your company’s mission, vision and core values.
Are you tracking attrition?
Source of Hires
Knowing where your hires are coming from is powerful and allows you to improve on
(1) recruiting effectiveness, (2) diversity, equity & inclusion efforts, and (3) quality of candidates.
Cost of Hiring
The majority of costs related to hires are due to recruiting resources, either internal and/or external.
Average Cost of Hiring
Offer Decline Reasons
The number one reason why candidates declined offers at seed through Series C startups is due to cash compensation. Startups at those stages should not be competing on cash compensation. It is critical that your hiring managers and recruiters are able to explain the current and potential future value of equity by supplying candidates with enough information so that they can project various outcomes.