We all know that by monitoring key performance indicators (KPIs) we can identify issues and drive business performance. And yet, it seems many companies are not making the best use of their own customer and operational data.
So why is this? It certainly doesn’t seem to make much business sense.
In the recruitment industry, some of the most relevant KPIs can broadly be categorised into three types:
1. Profit before tax
2. Aged debt
3. NFI (net fee income)
From sales and team management perspectives, some more detailed financial metrics will also be helpful, such as:
4. NFI per fee earner
5. % fee earners on target
6. Timesheet hours (temps, contractors, interims) Drilling down into these figures can also provide data on individual performances, and identify areas in which more detailed analyses, a change in work priorities, or additional training may be necessary.
7. Live jobs (with go-live date)
8. Active workers (temps, contractors, interims)
Success to date:
9. Placement numbers
10. Job fill %
11. Number of first interviews booked
12. Booked perm fees
Are clients and candidates likely to use the company’s services again or recommend the company to others? Areas to monitor include:
13. Customer satisfaction score (feedback)
14. Net Promoter Score
15. Target client to customer %
Monitoring the 15 KPIs above, and understanding the data generated, will help a business to be agile and respond to market changes as required. To be a leading recruitment company.
But how best to access and monitor these performance indicators?
We know that many company executives do not trust the data and analytical processes within their own organisations. One reason is because analytics tend to be spreadsheet-driven, and four out of five are concerned about data quality and consistency. This often leads to many management teams arguing over whether a report is correct – rather than discussing what actions are needed to improve performance.
This also means that the reports, when finally compiled, are often out-of-date and therefore the ability to take corrective action is lost.
Where systems are highly fragmented and do not easily share data, this is doubly the case and time is easily wasted.
Mark Lockton Goddard
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