Top of this year’s list of recruitment priorities according to a recent survey? Profitability. Some 65 percent of recruitment managers listed this as a primary goal, with driving top-line revenue growth (41 percent) following closely behind. And with good reason: recruitment is a number-driven profession and, for managers and executives, those data points really are the bottom line.
Little surprise then that at this year’s Recruitment Agency Expo, at the Birmingham NEC Arena on the 4th and 5th October, one of the recurring themes was how, while technology creates boundless opportunities, it is vital to understand the value of the data it produces to improve business performance, productivity and profitability.
When it comes to business development, recruiters have two real goals: adding more jobs to the recruitment pipeline, and getting good rates from the clients you work with. Measuring business development metrics provides a client-focused approach to driving revenue, avoiding excessive client loss, and developing long term and lucrative relationships.
So if the data is there, what’s holding recruiters back? Research shows the leading obstacle to achieving better use of data, metrics, and analysis is “inaccurate, inconsistent, or hard-to-access data requiring too much manual manipulation”. Taking a step back, cutting out the excess information and focusing on the critical numbers is vital, and this is where recruitment analytics dashboards help. With the right data at your fingertips, you can focus on the data points that really improve performance, increase profit and drive growth. So what are the metrics that matter?
A single, real-time view of data
Recruitment agencies have specific challenges using many different channels to reach candidates. Having a dashboard is critical to ensure agencies can gain a single view of operations to map performance, identify trends and help predict future opportunities or requirements to change priorities to those which are more profitable.
The connection between data and job roles
By comparing the relationship between metrics such as telephone call duration and the number of placements achieved, you can drill into the connections between this data and the mix of job roles (and success rates for each one), the volume of CVs being sent out and the conversion rate through to placements for each sector you operate in. Drilling down into this data highlights those sectors or jobs that are driving above average results, generating insights that will help you both save time and produce measurable improvements in your financial results.
The talent pipeline
A study from Gallup measured the impact of using data to identify top talent. It suggests that, when “companies select the top 20% most-talented candidates for a role, they frequently achieve a 10% increase in productivity, a 20% increase in sales, a 30% increase in profitability, a 10% decrease in turnover and a 25% decrease in unscheduled absences”. While most companies have a system in place for tracking revenue from placements, using dashboard analytics means you can also pinpoint the average revenue per placement, over time, by placement type; cash flow from contract placements, forecasted into the future; segment revenue by billing employee seniority; total placement revenue by industry segment; and year-on-year revenue growth rates.
Your most profitable actions
Geographical mapping allows you to see instantly, in real-time, where current jobs and candidates are located, which can then inform where you should start acquiring new candidates to fill the latest vacancies. It shows where focused action will produce results and increases the profitability of candidate recruitment by specifically sourcing for live roles, ensuring your teams always have opportunities, and your future revenue stream stays consistent. It enables you to find prospective clients faster in the locations where the volume of available candidates is highest. LinkedIn found that, when talent acquisition teams used data to hire, they were twice as likely to improve their recruiting efforts and three times more likely to reduce costs, while improving efficiency.
Individual and team performance
With employee motivation critical to sustaining revenue growth, it’s vital to encourage individuals and teams to focus on those activities that drive success. By delivering an instant and complete picture of team performance, you can compare individuals against their peers, teams and themselves. By setting targets for each team member’s performance metrics, managers and MDs can guide the scale of the business and understand the maximum revenue the business could be earning.
The opportunity for growth undoubtedly lies in using effective business intelligence tools, such as dashboards. For smart recruiters, there are certainly exciting opportunities to turn data into actionable insights, becoming more efficient and be more profitable as a result.