A Guide for Recruiters - How to Calculate ROI, KPIs and Plan Future Strategy
Your recruitment agency staff should not only be focused on meeting or talking to a set number of clients and candidates per week, they need to be thinking about the bigger picture too.
Your agency probably has many key performance indicators (KPIs), however it is important your recruiters, at every level, understand them fully so they know what is expected, meet their targets and increase revenue for your business.
Your recruiters should be working to meet their KPI targets, whether on a daily, weekly or monthly basis. These can vary from how many calls they are making, how many CVs they are sending or receiving, how many client meetings they are generating and, most importantly, what success is achieved from those processes. They should not just look at the surface numbers however, because there are many other ways to calculate ROI and build out the best recruitment strategies.
Thinking laterally, your recruiters should be fully aware of their conversion ratios – how many leads are they converting into placements and which methods work best for them individually? If KPI analysis suggests they are more likely to win new business via face-to-face meetings, for example, then they should be encouraged to work in that way more.
Staff should also actively monitor actual versus target – how many unfilled placements do they have and how can they increase their fill ratio? Analysing fill ratio figures will arm recruiters with the knowledge to help ensure they give candidates the best possible experience, so they will be more likely to return when looking for their next role.
It’s important to make sure KPIs are easy to track and understand. Showing your recruiters graphical information on where they are in the business quickly reveals which methods are working best, which need improving and how they are contributing to the overall company revenue stream. Recording and analysing KPI information in the right way, then modelling successful methods to drive training, is key to empowering recruiters further – ensuring they remain ahead in the Year of the Candidate.