How successful are you in achieving your goals? This can often become a complicated question, opening the door to philosophical, and even spiritual, concerns. But to push your staffing firm to the next level, you need a quantitative way to think about these topics.
That’s where KPIs come into the discussion. These key performance indicators provide a measurable way to track your ability to meet your obligations. You can see how well you are serving your clients, your job candidates, your employees, and yourself.
With that in mind, here are five KPIs every staffing firm should measure:
Key Performance Indicators That Should Be Measured
How efficiently do you fill your clients’ open positions? You’ll answer that question with a stat called “fill rate.” Here, you compare the number of placements you make with the number of potential hires your customers bring to you.
A low fill rate suggests that you don’t have the scope necessary to satisfy your clients. Conversely, a high number on this figure (the closer to 100% the better) points to an excellent ability to meet incoming demand.
Time to Hire
This statistic can show your value to both your clients and job candidates. It measures the amount of time it takes to fill open positions. Clients want strong team members as quickly as possible. Meanwhile, applicants want to locate a great position as soon as they can.
Time to hire suggests that you reach a high level of achievement on both ends. A low number (meaning it takes a short period of time to fill positions) speaks to the quality of your service.
Stats like fill rate and time to hire give you an objective view of how well your staffing firm is achieving its mission, both from a client’s perspective and from the view of job seekers. These represent quantitative measures of performance.
However, there are more subjective aspects of success that you should track as well. How do you get a precise understanding of these squishier subjects?
Just because a topic has more of an emotional component doesn’t mean you can’t gather data. Take customer satisfaction as an example. This crucial KPI can be traced through surveys and other secondary statistics. These strategies will help you learn where you are thriving and where you could improve your game.
Employee Performance KPIs
Yes, company-wide KPIs will help you gauge how well your staffing firm is achieving its general mission. However, you need more data to get the most out of your resources. These smaller-bore KPIs give you the insights necessary to upgrade your business.
To do this, you need to track the performance of individual employees. This will help you get the most out of your staff. Based on their role and even the individual team member, create appropriate KPIs to maximize your staffing firm’s potential.
Ultimately, your staffing firm is a business. As such, you can’t take your eyes off the core financial statistics that any enterprise needs to maximize. The other KPIs won’t matter if you can’t keep your company solvent.
As such, stay focused on the entrepreneurial aspects of your staffing firm. Look at ways to expand revenue — growth will keep your company vibrant over time. Also, consider margins and profits. These figures will help you choose what areas to focus on and which to de-emphasize.
Need assistance maximizing your staffing business?
Part of these financial considerations involves the question of funding. A partner like Frontline Funding can ensure that you have the resources you need to make the most of your staffing business.
Contact Frontline today to learn more.