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The 4 Most Important Recruitment KPIs to Employ in Your Business
Posted on 6th April 2017 in KPIs
Written by Freya Hughes
Recruitment is an industry with a whole load of different factors to measure. Especially as the business owner. While your staff are busy analysing the requirements of an job; finding, screening and selecting candidates; dealing with clients; and hiring and integrating new employees into their new roles, you’ve got to make sure your cash is still flowing and revenue is being generated. To take a little job off that busy to-do list, we’ve summarised 4 of the crucial KPIs to be monitoring.
There are countless KPIs to consider in recruitment, so it can be hard to know where to start. We’ve summed up the most important KPIs to measure to save you time and keep focused on the things that make your business unique.
1 CVs submitted
It makes sense to think the more CVs submitted, the better. Of course, you want (and need) a good amount of CVs coming into your business regularly, but remember to choose quality over quantity. If the CVs aren’t quite hitting the mark, you’ll be wasting a lot of time sifting through them all. Submitting a heap of candidates simply because the laws of probability dictate that someone will fit the role eventually is unfair on the candidates, and will waste time. This is the same with your number of active candidates. These people need your expertise to help them get where they want or need to be. By not paying due attention to matching clients and candidates, you’ll have a bad reputation in no time. Try to only work with candidates who fit your clients’ needs. Find out more here.
As with the CVs, you need to have a substantial amount of candidate interviews. After all, it’s placing these candidates that generates revenue. But again, if unsuitable, you could find your business loses efficiency, time and money.
If you’re a recruiter, your mission is to promote the candidate to your client. Hopefully, your candidate and client will then meet for an interview. Getting to know both parties will make this a smooth journey. Your client will appreciate you taking the time to find out exactly what they’re after too, especially as you’re counting on them for your own cash flow. If it’s needed, schedule a further meeting to keep on good terms with them. Find out more about client/candidate interviews here.
When measuring commission as a KPI, you need to monitor the percentage you get from the placed candidate’s annual salary. Make sure you’re not under or overcharging. Are you offering a retained or contingency service? If your commission gains are low, figure out how you can up them. Do you need new staff? Or to take on more clients? Are your candidates just not up to the roles available? Find out more here.
4 Time to hire
As with most industries, time very much equals money. In a fast-paced environment, it can be tempting to rush through tasks. Bear in mind that filling a role quickly, but with the wrong candidate will actually cost you more time, therefore cash, in the future.