The following article on Staffing Metrics is an excerpt from The CareerBuilder Recruitment Guidebook, featuring the Q2 2013 U.S. Job Forecast. See the full guidebook and complete forecast results here.
Staffing Metrics: How Does Your Firm Compare?
CareerBuilder recently surveyed more than 200 staffing company employees to find out which business-related staffing metrics they track. The results of this survey can help staffing companies analyze which metrics their competition is measuring and which metrics they should measure to make decisions that grow their businesses and focus on situations that will save them time and money.
Majority of Clients Check Open Reqs Daily
It should come as no surprise that the most highly tracked staffing metric among clients is the number of open requisitions. Sixty-three percent of firms check this metric daily, and 25 percent check it weekly.
While it is important for staffing companies to gauge how efficiently they meet clients needs right now, it is just as crucial to think about long-term goals. Findings from the survey indicate, however, that staffing firms place little emphasis on long-term analytics. For instance, 45 percent either never check or don’t know how to check their market share, and a mere 4 percent check their market share daily.
Moreover, nearly a third of staffing firms (33 percent) never check or don’t know their client Net Promoter® Score (NPS), a measurement of client and candidate satisfaction levels. According to Eric Gregg, CEO of Inavero, NPS scores are critical for staffing firms, due to the direct impact of client and candidate satisfaction on retention and revenue growth. “Retaining more clients not only boosts long-term revenue and margin growth, but it is also the most cost-effective marketing tool, increasing referrals, spend and client tenure,” Gregg says.
Source of Candidates Measured Most Frequently
Of all the candidate metrics, source of candidate was the most frequently monitored by staffing firms, with 35 percent of staffing firms checking this metric on a daily basis and 41 percent checking it quarterly.
Understanding the sources from which candidates are coming will help guide you as you allocate resources and better evaluate how you are sourcing candidates, where you are finding them, and what is resonating with these candidates.
The survey also found that 64 percent of staffing firms measure how often they connect with candidates on assignment within a month, while 58 percent measure how often they touch base with candidates in their network who are not on assignment. These firms understand the importance of staying in touch with candidates (even those who aren’t currently on assignments) to ensure that when relevant opportunities present themselves, candidates are ready and willing to work with your firm.
Continued Education Key to Internal Staff Engagement
Workplaces are competing more and more to retain top talent, as 32 percent of employers said top performers already left their organizations in 2012, and 39 percent are concerned they’ll lose their best people in 2013.
In order to retain the best talent, staffing companies need to know what their staff is saying about them; however, 46 percent of staffing firms don’t know their internal NPS. While even the best workplaces aren’t immune to the occasional turnover, 46 percent of staffing companies don’t measure internal employee turnover by account. Having a smooth transition in and out of accounts with turnover will lead to happier clients and candidates.
Continued education is a leading factor of employee success and is ranked as a top workplace benefit, with 35 percent of workers requesting learning opportunities. When it comes to measuring how well employees take advantage of opportunities, however, less than half of staffing companies (45 percent) measure completed training hours for internal employees at least once a quarter.
Keeping track of such metrics can keep your firm and employees accountable to valuable learning and development opportunities, which are key to engagement and employee satisfaction, according to Steve Berchem, CSP, chief operating officer for the American Staffing Association.
“According to ASA research, staffing professionals who have a Certified Staffing Professional® or Technical Services Certified℠ designation earn, on average, nearly 10 percent more in base pay than those who do not have a designation,” Berchem says. To promote learning and development, ASA members should encourage their employees to take advantage of the free training resources available to them.