In today’s guest post, TCI Business Capital shares key metrics your staffing firm should track to build and maintain a high-performance agency:
Which metrics show whether your staffing agency is doing its job?
When your business is built on recruiting talent and outsourcing it to dozens or hundreds of other companies, it can be challenging to keep track of everything that indicates success. Here are five key performance indicators (KPIs) your business should be tracking to maintain performance standards and drive continuous improvement.
1. Customer Satisfaction
No staffing agency can survive without satisfied customers. You need to establish positive relationships with the businesses you serve because your firm—like most staffing agencies—probably relies strongly on loyal repeat business. By becoming a company’s go-to source for temps or recruits, you can ensure the longevity and profitability of your business.
Customer satisfaction is your most important KPI. You can keep track of it in several ways, from asking customers to fill out surveys to monitoring how many of your clients come back to your business for additional assistance when a new need arises.
2. Temp-to-Hire Statistics
If your firm is a temporary staffing agency, then it’s worth looking at how many of your people are getting hired to serve in full-time roles by companies that originally only contracted their services on a temporary basis. While it can be an upset to lose a good worker from your temp ranks, these temp-to-hire scenarios show you are doing something right: you’re finding skilled professionals in need of work and placing them with companies that need their experience. Temp-to-hires can lead to terrific word of mouth, which makes their journeys and full-time employment rates well worth tracking.
3. Fill Rate
Fill rate is the percentage of jobs you fill out of all the job orders you receive. You want this percentage to be high: a high fill rate shows your submittals are dependably resulting in hires, which means your business is operating efficiently and profitably.
A low fill rate shows there is a weak link somewhere in your firm’s procedures that is costing you hires. It could be that another staffing agency is finding better candidates than you are, or even as simple as you aren’t timely enough with your submissions. A low fill rate is a sign something needs to change.
Check out this article to see ways to increase your staffing agency fill rates.
4. Submissions Per Hire
How many submissions is your firm making for every hire you place? No staffing firm can have a perfect one-to-one ratio. However, if you are getting one hire for every four or five submittals, you are on target based on industry standards and your goals for growth. This KPI will not only tell you how you are performing alongside most other staffing agencies (which tend to fall in that 3-5 sweet spot) but also how many resumes you should be aiming to send out every day to maintain or increase your success rate.
5. Time to Hire
You want the talent you secure to be working as much as possible. Maintaining a database of ready and willing workers who do not get placed doesn’t leave a positive impact on them, your business’s bottom line, or the businesses you partner within worker placement. Measuring how long it takes to place a worker—either after they join your agency or after they complete a temp contract—can help you identify weaknesses in your placement process.
These metrics are not the only KPIs a staffing agency should measure. However, they are five key ones to track, and if tracked responsibly, they can yield a surprising amount of insight. Starting with these KPIs and branching out to other metrics over time will help your business get a solid understanding of its efficiency and improve its success rates.
About the Author: TCI Business Capital
Since 1994, TCI Business Capital has provided payroll funding and invoice factoring solutions to staffing agencies across North America. By turning your invoices into same-day cash, you’ll have the working capital to grow your agency and meet payroll with ease.