With the access of “big data”, your recruitment agency and recruiters have tools available to them like recruitment software and BI platforms to use data to analyse, track and measure operational and financial performance. But when it comes to operational performance, what recruitment metrics or key performance indicators can be identified and measured to gather insights of your recruitment agency and recruiting staff performance?
Below is a list of 7 key recruitment metrics that can assist you to analyse and measure operational performance across your recruitment agency.
1. Placements To Goal
Placements to goal equates to the number of placements required to meet a predetermined goal within a defined period of time. Placement to goal gives your recruitment team a clear indicator of how many placements they need make before reaching their monthly, quarterly or annual target.
2. Time To Fill
Time to fill can be measured in two ways with the most common being the number of days between a vacancy being received and a candidate accepting an offer. The additional measure is the number of days between the date a candidate accepted the offer to the candidate’s start date. Both are beneficial to measure the average time to fill a vacancy and then the average time from offer to start date to measure efficiencies and revenue forecasting.
3. Application To Interview To Placement
This metric is useful to measure how effective your overall recruitment process has been for a particular role or on average for your agency. You can measure the number of applicants (from either external advertising or candidates registered in your recruitment CRM), consultant interviews, CVs forwarded for a role, to client interview, to offer, to placement. This metric will provide oversight on the effectiveness at key stages of the recruitment process and highlight any areas of slippage.
4. Sourcing Channel Effectiveness
Sourcing channel effectiveness can be measured in two ways; quantity or quality. The quantity measure is the number of candidates generated from each sourcing channel during a given timeframe. The quality measure is the number of candidates generated from each sourcing channel and then successfully placed in a role. This data will assist with creating a clear picture of which sourcing channels are beneficial for volume candidate attraction and which are most effective in generating revenue.
5. Margin/Placement Fee
A temporary margin or a permanent placement fee are revenue streams for all recruitment agencies. By measuring and tracking your average temporary margin or placement fee for growth or erosion you can clearly see how your recruitment agency performing. This metric is also very useful to assist for revenue projections, measure overall discounting and market conditions.
6. Client Retention
A simple metric to measure, client retention refers to the number of clients where vacancies were received compared to the same period the year before. Fundamentally, this will compare how many clients you have gained, retained or lost in a 6 or 12 month period.
7. Candidate Satisfaction
Candidate satisfaction is an crucial metric to measure objective feedback from candidates regarding their overall experience with engaging with your agency/recruitment consultants. An online survey is an excellent tool for capturing candidate feedback through key stages of the recruitment to placement process. These insights can inform you where your particular strengths are and in what areas you need to improve.
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