Annual Attrition ⏱
We recommend companies to start tracking attrition data around 75-100 employees. For earlier stage companies, this data can be tracked informally. A good benchmark for startups is 10-20% attrition with 5-10% being non-regretted. Companies with 250+ employees have more established performance metrics/frameworks in place and are able to better identify the low performers (non-regretted attrition). If your startup is < 50 people with growth between 25% and 100%+, your attrition rate should be lower.
Early/Mid stage startups (1-250 employees) Top function with the highest rate of attrition: Product, Sales, and Marketing. Top functions with the lowest rate of attrition: Engineering, HR/Recruiting, and Operations. Growth/Late stage startups (250+ employees) Top function with the highest rate of attrition: Engineering and GTM. Within GTM, order of highest attrition across teams are: sales, then marketing, followed by customer success. Top functions with the lowest rate of attrition: Legal and Finance.
Recruiting Metrics 🗂
As a best practice, we recommend you start tracking various metrics as it will help you with capacity planning and resource allocation. Some recruiting metrics our companies are tracking include:
# of reach-outs it takes for one phone interview . # of phone interviews it takes for a first onsite. # of first onsites it takes for one / final onsite. # of to lead to an offer. No rush# of offers to lead to an offer accept. Time to fill: # of days it takes to fill a specific role.
Source of Hire:
% of hires from referrals. It is important to be aware of the % of hires you are getting from employee referrals. Anything on either extremes (high or low) is not great. If more than 80% of your hires are coming from ERs, you run into potential problems of not having a diverse workforce. Nepotism is a common occurrence in the tech industry. % of hires social media (broken down by paid ads vs non-paid/organic: Twitter, LinkedIn post, etc, Medium). % of hires from job boards. % of hires from outbound/sourcing.
% of Offer Accepts:
It’s helpful to track offer declines and reasons why so you can make adjustments to your interview and offer process. Categories of reasons can include: scope of the work too limiting/not excited about the mission, comp, location, counter-offer from current company, poor candidate experience (interview team wasn’t aligned, lack of communication, etc).
Track the strength of each interviewer
Who is most calibrated , who vets which aspect the best (technical, cultural, soft skills), and who scores highest on candidate experience.
Tracked Metrics by Company Size
Average Cost of Hiring Talent
Given the competitive talent market, we are seeing the average cost of hiring talent go up 5% -10% from last year. Some costs to consider: recruiting tools (job posting, sourcing, etc), recruiter salaries, programs (employee referrals, university, etc) and agency fees.
Candidate Experience 📌
55% of companies gather data on candidate interviewing experience. Even if you are a no hire, it is important to provide a strong experience since candidates are still evangelists for the brand and customers of the company. The top tools used include: Greenhouse, Culture Amp, Lever, and Survey tools (i.e. Typeform, Coda, Survey Monkey etc.). Other tools used include Resource.io, Starred, BreezyHR. We recommend you measure candidate experience to help you improve your interview process, and ensure your employer brand.
DEIB Metrics 🌏
86% of our companies have a DEIB strategy around women, URMs and LGBTQIA+. Some other companies also have a DEIB strategy around Veterans and People with Disabilities.
Tracking Regretted Attrition
— By Gender (Women)
According to the U.S. Bureau of Labor Statistics, there were 2.2 million fewer women in the labor force in October 2020 than in October 2019. Based on data from companies that do track regretted attrition by gender, career progression, work flexibility and compensation are the top reason why women leave their companies.
— By Race
Tracking race specific attrition has been a growing agenda for our companies. Of those who have historically tracked this data, career progression and compensation are the top reasons why URMs leave their companies.
43% of companies with 100+ employees have a dedicated DEIB budget, and 80% of companies with 500+ employees have a DEIB budget. For companies that have a DEIB budget, the average is 10% of total recruiting budget regardless of size.
20% of all companies have a hiring goal around DEIB. Of those companies, the target diversity hiring goal ranges from 20% on the lower end to 50% on the higher end.
Majority of companies <100 employees do not track diversity pipeline. For those that do, they either track via ATS only (EEOO stats) or a combination of ATS + manually (spreadsheets).
OKR (Objectives and Key Results) Cadence 📝
During this current environment where many employees are working remotely, we have seen a trend with smaller companies <100 employees shorten their OKR cycle from quarterly to every 6-10 weeks. 43% of companies <100 employees do not have formalized OKRs in place. For those that responded “no change”, the majority of companies are setting OKRs on a quarterly basis.
To learn more about OKRs, check out the “Measure What Matters” website .
Company Spotlight 🔦: Pathlight
Pathlight’s Real-time Performance Management (RPM) platform allows customer-facing teams to manage performance faster than ever before. By consolidating performance data, coaching, and communication in one place, the platform empowers data-driven management at every layer of the organizational chart.
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Employee Review Cycle 📆
14% of all companies surveyed have made changes to their employee review cycle. These include:
Shortening cadence of the formal review cycle (ex: shifting from annual to bi-annual) Adding a quarterly conversation, separate from the annual review, where managers sit down with employees to give feedback and set upcoming goals Transitioning from reviews based on employee anniversary dates to a company-wide annual review cycle
Cadence of Employee Review Cycle
 Allows you to iterate on your outbound messaging. For companies that are tracking, senior recruiters are getting higher response rates than junior recruiters. Founders and execs will get the highest response rate on their cold reach outs.
 Calibration will occur over time as you gather more data around connection between the employee’s performance and the interviewer’s ability to identify talent