Part Two of a Two-Part Series
In our previous blog post, we highlighted the significance of key performance indicators (KPIs) and outlined a selection of KPIs crucial to all staffing companies. Building on that foundation, this post shifts focus to the recruitment process itself, spanning from the moment a job is posted to the successful placement of a candidate. By monitoring these KPIs throughout this critical journey, staffing firms can streamline operations, enhance efficiency, and ensure the delivery of top-tier recruitment services. Join us as we explore the essential KPIs that play a pivotal role in optimizing the recruitment lifecycle and driving sustainable success in the staffing industry.
- Job Posting and Initial Engagement Phase KPIs
- Job Posting Response Time: How quickly a staffing firm responds to a new job order or client request.
- Job Order Accuracy and Completeness: Assesses the quality of job descriptions and requirements provided by clients.
- Client Communication: Tracks the frequency and quality of communication with clients during job order intake.
- Client Satisfaction with Job Posting: Client feedback on job order details and requirements. (Gathered through surveys or individual engagement.)
- Candidate Sourcing and Screening Phase KPIs
- Sourcing Strategy Effectiveness: Evaluates which sourcing channels (job boards, social media, referrals, etc.) yield the best results.
- Candidate Pipeline Quality: Monitors the size and quality of the candidate pool for the job order.
- Candidate Submission Rate: The percentage of submitted candidates that match the job requirements and client expectations.
- Candidate Qualification Process: The average time to complete the candidate qualification process. Efficient qualification reduces recruitment pipeline bottlenecks.
- Initial Interview-to-Submission Ratio: Compares the number of initial candidate interviews to the number of submitted candidates.
- Candidate Presentation and Interview Phase KPIs
- Time-to-Submit: The time it takes to submit a candidate to the client after the initial interview or qualification. Shorter times indicate efficiency in moving candidates through the process.
- Client Interview Feedback: Input from clients on candidates performance during interviews.
- Interview-to-Offer Ratio: Compares the number of interviews given to the number of job offers extended.
- Offer and Negotiation Phase KPIs
- Offer Acceptance Rate: The percentage of job offers accepted by candidates.
- Offer-to-Acceptance Ratio: Compares the number of job offers extended to candidates with the number of job offers accepted.
- Client Feedback on Offer Preparation: Client input on the clarity and attractiveness of job offers.
- Onboarding and Placement Phase KPIs
- Candidate Onboarding Time: How long it takes for candidates to complete onboarding requirements.
- Candidate Satisfaction with Onboarding: Candidate feedback on their onboarding experience.
- Time-to-Placement: How long it takes to move a candidate from initial engagement to job placement.
- Placements vs. Open Job Orders: Ratio of successful placements to total open job orders.
- Client Relationship and Overall Process KPIs
- Client Satisfaction with Recruitment Process: Client feedback on their experience with the recruitment process.
- Candidate Satisfaction with Recruitment Process: Candidate feedback on their experience with the recruitment process.
- Efficiency and Timeliness KPIs
- Time-to-Fill: Average time it takes to fill a job vacancy from the moment it’s opened.
- Time-to-Hire: How long it takes a candidate to move from initial engagement to a job offer.
- Quality of Hire and Fit KPIs
- Quality of Placements: Assesses the performance and longevity of candidates placed with a client. (Can be measured through extensions and conversions.)
- Client Feedback on Placed Candidates: Client input on the performance of placed candidates.
- Candidate Feedback on Placements: Candidate input on their experience in their new roles.
- Diversity and Inclusion KPIs
- Diversity of Candidate Submissions: Evaluates the diversity of your candidate pool for the job order.
- Diversity of Placed Candidates: Assesses the diversity of candidates successfully placed with clients.
- Cost and Financial KPIs
- Cost per Hire: The average cost of recruiting, hiring, and onboarding a candidate.
- Gross Margin: The difference between the revenue generated from successful placements and the cost of those placements.
- Process Efficiency and Improvement KPIs
- Candidate Sourcing Efficiency: The number of sourced candidates needed to submit one qualified candidate. Assesses sourcing process quality and its alignment with client needs.
- Candidate Conversion Rate: The percentage of sourced candidates who move through all stages of the process.
- Job Order Management and Client Needs KPIs
- Job Order Pipeline: The number of open job orders and their status in the recruitment pipeline.
By measuring the KPIs listed above—and implementing improvements to address KPIs that fall below expectations—you can make your recruitment process more efficient and effective, driving more of the success you need!
Does your staffing firm focus on light industrial, healthcare, locum, professional, or permanent placements? Reach out and let us know your focus; we’ll send you a comprehensive list of KPIs that are unique to your agency’s specialty!
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Erin MacKenzie is Newbury Partners Vice President of Client Services. She oversees both the Customer Success and Managed Services divisions. Her team works with all of Newbury Partners current clients to ensure that we are meeting our brand promise commitments with the realization of the investment in our services, every client has a voice and to create a partnership that continues to grow with every engagement.
Email us at sales@newburypartners.com to learn more about how we can help you with setting up the right KPI’s for your staffing firm.
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