Finding the right metrics to focus on in your staffing agency can be quite challenging. Which metrics are the most important and why could be a subject of debate for hours without end. To complicate the situation, if you adjust your processes or goals based off tracking the wrong staffing metrics, you could end up driving your agency into unfamiliar, alarming and/or potentially hazardous territory.
Without a doubt, some metrics are better than others at providing your agency with big candidate data from which to base more effective decisions. Let’s explore some of those and why they are more important than others.
Which Staffing Metrics Are Most Important?
Some of the more common metrics analyzed by the typical staffing agency include time-to-fill and cost-per-hire. These metrics are great for measuring short-term performance. And, short-term performance is definitely important. But what about the long-term? If your agency purely focuses on placing the first candidate with the required qualifications, is that truly a foundation for long-term success?
You might have some initial success and an incredible placement rate, which makes you look good now, but you may lose client companies because your turnover rate stinks! As such, it’s also critical to track turnover rates to see how well you are actually matching candidates to positions and companies in which they will be successful.
Length of time in a position can indicate a good fit, but some other important metrics you might also want to track to determine the quality of the hiring process at your staffing agency are production and manager satisfaction. By measuring the employee’s production as compared to his or her peer group, you will have a good idea as to how his or her skills will fit that position. Manager satisfaction with the employee contains a fair amount of subjective judgment and may or may not reflect the candidate’s performance accurately, but it does provide a good measurement of culture fit.
When You Focus on Long-Term Staffing Success, You Transform Your Agency
Focusing on those short-term metrics has its place when analyzing your company performance, but if you also take the time to focus on long-term metrics, you will take your staffing agency a step above all the rest. The more tightly an employee’s skills and personality fit a company and its culture over the long haul, the higher the employee’s performance. The better the employee performs, the better the company performs, and the more business your agency earns by developing a great reputation.
Don’t follow the herd and measure what everyone else does – take a risk by trying something different. You won’t be disappointed by the results.
The Bond Team has deep industry experience that makes it uniquely capable and responsive to your needs. No staffing or recruiting software firm knows the business better, and that know-how is focused on helping you do what you do better and more profitably.
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