Improve recruiting efforts with key metrics tracked by recruitment CRM software
Toby Conibear, European Business Development Director, Bond International Software
Regardless of what industry you are in, you most likely understand that business is largely a numbers game. Numbers are everywhere, from tracking successes and failures to improving process operations and analysing customer data. With all of these facts and figures available, it would be foolhardy to think that the staffing and recruitment industry is no less a numbers game.
Now, with agencies that focus more on providing a consultative service, the numbers become more critical. Successful staffing firms are tracking recruiting metrics to understand a wide range of factors. The adoption of recruitment specific CRM software has allowed recruiting professionals to gain access to the necessary metrics faster than ever. Metrics allow staffing agencies to justify costs, show return on investments, predict hiring trends and even the potential success of certain candidates over others.
In the recruitment industry, hiring metrics are a key component of measuring the success of an agency. For the average staffing professional, however, it may be hard to truly understand where all these figures are coming from, how they are derived and what they really mean.
Why should a staffing and recruitment agency use metrics?
Metrics in the staffing and recruitment industry can lead to a wide range of benefits. One of the greatest benefits is the advancement of the relationship between a recruiter and their client. Metrics and their proper application enable recruiters and clients to align their objectives. In addition, the right figures allow an agency to prove their credibility to current and potential clients. According to Qualigence International, recruiters are better able to display their understanding of an industry and whether they have appropriately achieved goals and objectives. With the help of recruitment software, a recruiter can enhance their ability to take action and be fully effective in their role. Recruitment software and metrics allow an agency to generate meaningful internal benchmarks to better create performance standards and drive business growth.
Three time periods most metrics cover in the staffing and recruitment industry
Understanding metrics begins with discovering what is being measured. According to ERE.net, there are three time periods that metrics should cover so staffing professionals get the most out of the numbers.
1) Historical metrics
Too often when a recruitment agency is talking about metrics, it is focusing on historical metrics. According to Dr. John Sullivan at ERE.net, relying solely on historical metrics is a recipe for disaster. These metrics measure the events and data accrued in the previous year and should not be used for real-time decision making because everything they tell a recruitment professional has already occurred. These metrics are better used for trend analysis.
2) Real-time metrics
This type of metric allows a staffing professional to see what is going on as it is happening. This is helpful but could also cause potential problems. According to Sullivan, because real-time metrics occur for the most recent month or quarter, the figures could give a skewed glimpse of how the agency is performing. It’s best to remain aware, make slight adjustments and possibly look at how any changes in the economy or processes could be impacting the results.
3) Predictive metrics
Sullivan told ERE.net that although predictive metrics are very rarely used in the recruitment industry, these figures could be the most important of all. By using these figures, an agency may be able to determine what challenges it could face in the future or whether an opportunity is on the horizon. Staffing and recruitment professionals seeking to work proactively rather than reactively should consider the merits of using predictive metrics in their decision making.
Key staffing and recruitment metrics to track
1) Number of positions filled
This figure tracks the number of candidate applications accepted for a position by a client during a fiscal year. This number falls under the historical metrics category and often helps recruitment professionals determine employee turnover and total costs spent annually on new workers. A recruitment software system can help track this process easily and help professionals determine how best to improve performance.
Depending on the staffing and recruitment organisation you are working for and what part of the industry it serves, it could be important to track employee retention for re-placements. How long are workers placed at agencies staying? This is of course less applicable to recruiters who are providing professionals who work in contract positions with a set end date. If, however, retention is a figure being used by your firm, make sure that it also includes voluntary versus involuntary talent turnover for workers on assignment that takes the month, quarter and year into account. In addition, measure average overall time of employment, average number of workers on site, and whether the number of onsite workers appreciates over time.
3) Position vacancy rates
Staffing and recruitment professionals are often used to find a worker for a position faster and cheaper than an in-house human resource office. This means that every day a position is left unfilled an agency may be losing future orders from the client. Vacancies impact corporate revenue for a staffing and recruitment agency as well as the client. As a result, it’s imperative to find a person for the position in a timely manner and to ensure that the average vacancy time is not lengthy. ERE.net reported that it is a good idea to consider creating a standard vacancy rate so that recruiters have goals and benchmarks to measure their performance against.
Bottom line, staffing and recruitment professionals know that whoever gets there first (with the right candidate/employee) – wins. Wisely using the reports and metrics available through an advanced staffing and recruitment software system plays a crucial role in understanding and running operations that are consistently first.