Bluebook

SO Metrics Blue Book v1 • 4/4 • 3.5”W x 5”H Finished (7”W x 5”H Flat) • Built @ 100% Proofed @ 100% • Color CompDesigned by Tad Dobbs • Mar. 10, 2010 • © 2010 Starr Tincup

“Metrics are the language of business,” said Donald E. Breckenridge Jr., President and CEO of Sendouts. “Anything that can be measured can be improved. Without metrics, it’s difficult to understand exactly where to focus your efforts for obtaining job orders, making placements and increasing revenue.” The recruiting process may have subtleties specific to a certain industry or type, but there are underlying metrics and steps needed to measure the health of your business. The key steps in the process are: • Marketing call effectiveness • Job order coverage ratio • Job order response time • Quality of candidates submitted • Quality of candidates interviewed • Quality of hire • Job order fill ratio • Time to fill

In this book, Sendouts will identify key metrics for each of these steps and help you understand how to increase your recruiting efficiency and effectiveness so you can make more placements and more money.


1

Marketing Call Effectiveness

Key metricMarketing Calls to Job Order Ratio

DefinitionThe number of marketing calls it takes to obtain a job order.

What you need to know Marketing call to job order ratio shows how many calls you make before obtaining a job order, contract or temp assignment. At the end of 2008 and beginning of 2009, this metric quickly changed and many recruiters found that it required more than 120 marketing calls to obtain a job order. Recruiters needed to increase their number of marketing calls in response – in some cases tripling or quadrupling the number of calls just to bring in the same number of job orders. As hiring rebounds, this number is dropping below 90 calls.

Use this metric to calculate how many calls you need to make each day.


2



Job Order Coverage Ratio

Key metricOpen Job Orders with at least one Submitted Résumé

DefinitionThis is the percentage of open job orders where you have sent at least one résumé.

What you need to knowThis metric is important for recruitment firms managing a larger number of job orders because it is an indicator as to how well you are serving your clients. If this percentage is low, it could indicate that either the quality of job orders you’re taking is low, that you need additional horsepower in sourcing and recruiting or that you’re focusing too much effort on just a few job orders.

When you get a job order, you need to get a qualified candidate in front of the client quickly.

3



Job Order Response Time

Key metricTime from New Job Order to First Résumé Submission

DefinitionThis metric is the average time it takes to submit a résumé after obtaining a new job order.

What you need to knowThis metric shows how quickly you are able to respond to your clients. In staffing and recruiting, the business often goes to the recruiter who submits the best résumé or candidate to the hiring manager first. A fast response typically indicates that you have an excellent pool of existing candidates and/or you are able to source qualified candidates quickly. Remember that you compete on speed, quality and price. This helps to measure speed at a crucial point early in the process. As a recruiter, you don’t want to get beat by another recruiter submitting a qualified candidate.

Get the business by getting the résumé to the hiring manager first.

4


Quality of Candidates Submitted

Key metricRésumés Submitted to Sendout Ratio

DefinitionThis ratio is the number of résumés that are submitted to the client before getting a sendout (a sendout is a candidate who is being interviewed by a hiring manager).

What you need to knowIf you are submitting résumés to a hiring manager but not getting any sendouts, it’s probably because you are sending résumés that don’t fit the needs for the position. Your job as a recruiter is to identify well-qualified candidates and send the top few résumés, usually three, to the hiring manager. If you submit 10 résumés, then you have not done your job to filter them down to just the top candidates. If you send just one, then you haven’t given your client enough choices to really make a sound hiring decision.

Effective recruiters provide the hiring manager with just the top candidates.

5


Quality of Candidates Interviewed

Key metricSendout to Placement Ratio

DefinitionThe number of sendouts it takes to make a placement

What you need to knowA good sendout-to-placement ratio is in the area of 3 or 4 to 1. A high ratio may mean that you’re dressing up the résumé but not thoroughly qualifying or interviewing the candidate yourself. During a recession, this ratio can easily increase if the hiring managers are taking too long to make a decision and the candidates are moving on to other opportunities. Tracking this metric can help you optimize your work and see clearly if two or three extra sendouts each month could lead to an extra placement.

To make a placement, you must have sendouts.

6


Quality of Hire

Key metricPercentage of placed candidates still on the job after one year

DefinitionHow many candidates have not quit or been terminated after their first year.

What you need to knowThis metric is the ultimate display of how well you are able to place the right candidates in the right jobs. Being able to say that 98 percent of the candidates you place are still on the job after the first year will tell your clients a lot about the quality of your work and your ability to fulfill their needs. To track this metric year over year, build in reminders in your CRM to ask your clients about the candidates you placed. You should also consider tracking the candidate source in your CRM. Are certain companies, schools or referral sources proving to be consistent sources of high-quality candidates?

Placements remaining after a year is the ultimate indicator of great recruiting.

7


Job Order Fill Ratio

Key metricJob Order Fill Ratio

DefinitionThe ratio of job orders written to job orders you have filled.

What you need to knowIf your fill ratio is low, this suggests that your firm has too many jobs and not enough recruiters. It could also mean that you are taking jobs that can’t be filled. Or it could mean that you, as the account manager, are not gathering the appropriate information to conduct an effective search. You need to focus on getting the right information from the hiring manager to be able to find the right candidates.

Don’t waste a ton of time on jobs that are unfillable.

8


Time to Fill

Key metricTime-to-fill ratio

DefinitionTime to fill is the length of time from receiving a job order to filling it.

What you need to knowThis is the most basic of the metrics, because it’s all about quality and time. Time to fill will vary depending on your industry, the type of position and other variables. However, you should remember that open positions cost clients money, and the ability to fill positions quickly establishes your value as a recruiter. Filling a position quickly with an unqualified candidate can hurt your overall recruiting quality and lead to turnover. Know the benchmarks for your industry, but be careful to balance speed and quality.

Increase efficiency, but not at the expense of quality.

9


Conclusion Metrics are important for any business, but in the staffing and recruiting industry, these analytics are crucial. Recruiting metrics that are accessible and used appropriately can provide insight into trends and changing market conditions in real-time.

Because of the benefits, it would seem that every recruiting firm would use metrics, but that’s not the case. Some recruiters believe that aggregating and analyzing their metrics is either too difficult, takes too much time or won’t yield a significant benefit. Undoubtedly, those recruiters are missing out.

Metrics can vary depending on the type of recruiter you are and your industry niche. Also, numbers can change with the fluctuations of the economy. However, you cannot improve what you don’t measure. As veteran recruiting trainer Barb Bruno explains, “In any given quarter, you can see trends and you can adjust the way you work, based on your numbers.”

The right CRM can significantly benefit your recruiting. To find out more about how Sendouts can help, visit us online at www.sendouts.com or call 1 (877) 309-5222.

10


About Sendouts Sendouts™ is the leading, single source provider of recruiting software for third party recruiting and staffing firms. Sendouts Surge Web-based recruiting software enables recruiting firms to streamline their recruiting process, increase productivity, and make more placements. Additionally, Sendouts provides unparalleled training and support and is backed by an industry leading 98% customer satisfaction rate. Sendouts clients on average achieve an internal growth rate of 48% and increase job order fill rates by over 20%. Sendouts helps more than 1000 firms automate and manage the entire recruiting process, from sales to final placement. For more information, visit www.sendouts.com or call 877-309-5222.

Documents

Bluebook