Which hiring KPIs are important to track for your Staffing Agency?
If you work at a staffing agency, or work with one, it’s common knowledge in this type of work to know that on a daily basis recruiters manage an extensive database of candidates for their client’s positions, besides having to source, attract, engage and qualify talent in a short period of time to meet their client’s demands. Despite new technologies in the Human Resources industry, staffers still encounter roadblocks by embracing a more ‘traditional’ approach to hiring, resulting in an unnecessary increase of headcount to keep up with all the work that this manual recruitment process creates.
To better understand how staffing agencies can optimize their workload and become more efficient at hitting their goals and delivering positive results to their clients, we’re going to look at the Key Performance Indicators (KPIs) that matter for these types of businesses and how HR technology can work in favor of improving these indicators.
What are the 4 main KPIs for Staffing Agencies?
There are dozens of different indicators to track when it comes to recruitment and hiring. However, we’ve listed below the four main indicators that staffing agencies should keep a close eye on, that will ultimately impact overall business growth.
Time to Hire : This indicator indicates how successful your team is in identifying the right talent and ensuring the recruitment process goes as smoothly as possible so that the hire can be made. Usually, the less days in your time to hire metrics means the more efficient your team is. However, keep in mind that if your client’s retention rates are very low, this can be a sign that despite closing positions quickly, these new hires are not staying in the company for too long (which is a problem!).
Satisfaction Levels: Your client and candidate’s satisfaction levels are extremely important for your business growth. In order to create a trusting relationship with both your clients and candidates, it’s important to have high levels of satisfaction around your services and hiring processes.
First-year turnover rate: If you have a high first-year turnover rate, it can become an expensive cost for your clients and ultimately reflects poorly on your work. A high first-year turnover rate means that the hires you’ve brought to your clients aren’t happy in the position. This can be due to bad fit, unaligned expectations and other factors that put in a bad spot with clients.
Quality-Hire: This indicator can be trickier to measure because it depends on many different factors: how your clients define a quality hire, how long it takes to bring new hires to full productivity, the hiring manager’s satisfaction and so on. However, by determining a quality-hire indicator with each client, you can efficiently measure the success of your hard work.
Switching to a recruiting platform, such as an Applicant Tracking System, that can accomodate your staffing agency’s needs, can be extremely beneficial to your business by helping you achieve the KPIs previously mentioned in a seamless way, positively impacting your team and clients!
Juliana Bessani, CEO of Staffing Agency Competenza, noticed her satisfaction indicators increased after she began using Plooral, an online recruitment platform.
“After one month of using the platform, candidates were already giving us positive feedback about our application process. Our applicants can apply to our client’s open reqs online or through the Plooral App and continue using the App afterwards to search for new opportunities, track their application process and to stay in contact with our team.”Juliana Bessani
How Plooral can help you automatically measure Time-To-Hire and Satisfaction Levels.
- Measuring ROI #1: Time-To-Hire
Time-to-hire is the number of days passed since a candidate entered your pipeline until the day you hire a new employee. Here is the formula to calculate time-to-hire:
On Plooral’s platform, your average time-to-hire for all positions will appear automatically on your Intelligence dashboard. You can also filter time-to-hire per position or department as well.
- Measuring ROI #2: Satisfaction Levels
One of the hardest tasks for overwhelmed recruiters is collecting candidate satisfaction scores, especially if they’re having to do this job manually. The problems that arise around collecting client satisfaction scores is the fact that managers who aren’t very involved in the recruiting process simply measure their satisfaction based on the candidate that was hired. That’s why it’s important for recruiters to work closely with their clients from beginning to end in the hiring process. Being transparent about the difficulty of the hire, or the many steps that it takes to interview candidates, might just give your clients a different perspective and allow them to value and appreciate your work.
Plooral has features that can solve these two problems. Its automatic NPS feedback system allows each candidate to leave a score and a review after each application process. These scores tally up on the platform and are displayed on the recruiters main dashboard. Team members can filter NPS scores per position as well, that way they have a detailed understanding of how a specific application process can vary from another.
Additionally, by being able to add clients to the system under different permission settings, recruiters are able to involve them (according to what has been previously agreed on with clients) in their application process. With Plooral, clients can vote on candidates, leave feedback, schedule and participate in interviews, watch candidate vídeos, review resumes and assessment tests and more!
“Today, if my client questions something, Plooral helps me give them some insight into my team’s work. If they are unsure about something specific in our hiring process, we can add them to the platform under their specific username so they can be a part of our workflow. This helps build trust around our business.”
Another benefit of involving your clients in the application process is to help you save time from having to give your clients constant feedback on the position status and other deadlines. By simply logging on, clients can view where candidates are in each stage of the hiring process, generating overall transparency in your relationship.
There are three user types on Plooral: Manager, Evaluator, and Administrator. Each one of them has their own permissions within the platform, which helps you manage and monitor activities between your team and clients.
How to transform your hiring process, starting today!
We know that staffing agencies deal with a high demand of tasks and deadlines due to the nature of their work! We hope that with this blog, you could better understand how to keep calm and focus on the KPIs that actually matter for your business.
Don’t forget that HRTech, specifically recruitment platforms, are your allies! Count on an intuitive platform and other tools to make your day-to-day operation more efficient and to support your needs. A smart tool will help you collect the data need to measure the KPIs that matter to your business and can even help strengthen your relationships with clients. Speak to one of our specialists to understand how we can help you!