To properly measure the success of your recruitment agency, recruitment metrics are used. There are many different calculations and formulas to find numbers related to differing fields. When taking these figures into account, you can properly determine how effective your recruitment agency is. It's important to take a deep look into your metrics so you can precisely measure how well your application process is. Here are some various key recruitment metrics and what they mean to your agency.
To calculate the efficiency of hiring, divide the recruiting costs by the starting pay of new employees. Calculating this gives you an idea of how many applicants you are able to take. This is important for the long term growth of your business so you can meticulously configure your model into one that is not economically detrimental.
By looking at the ratio of candidates presented and candidates qualified you are able to see how well the recruiting agency is filtering through candidates. If a large portion of applicants is not getting through the hiring manager then it is obvious that the recruitment agency may not have properly screened the applicant to view their qualifications. Online recruitment software improves this number by allowing easy online screening and fast recruitment. Once you effectively screen each applicant, you can also keep a high number of applicants overall since the process is done online.
Hiring Manager Feedback Timeliness
If you apply for a job and do not get a response in time, you will most likely accept the next call up. To reduce the number of applicants that decline your acceptance because of this, automated software is available to automatically accept and decline applicants right away. Measuring the exact time between the interview and the manager response is still crucial, because valuable applicants may not be available when you do end up responding back. This is especially important in today's competitive market, so narrowing that time gap is going to be a key to success for any recruitment agency.
Quality of Hire
When you hire somebody, you have ways of measuring their performance. This can be done with a scorecard, and employers can use this as a way of determining the value of new applicants. When measuring this, you are not only determining their strength on the screening but them as an actual employee. This is perhaps one of the most significant metrics in looking at the long term growth of a hire. Long term employees will always end up being the most valuable employees.
Determine the first year turnover and then divide the number of employees who leave your firm by the total number of employees a year. Recruitment agencies can then view this metric and get a deeper look into the employees' perspective. The firms you are connected to will determine your reputation, so you do not want your applicants going into a lousy firm. With software able to automatically calculate this and sort out the underperforming firms, recruiters are able to use this tool effectively to weed out the underwhelming clients.