Measuring the growth and performance of your recruiting agency doesn’t have to be arduous. In 4 easy steps that follow, we’ll help you determine areas that need improvement and those that deserve a round of applause. Use this recruitment agency business plan as the structure for your agency and record these metrics and their outcomes:
-
1: Recruitment Revenue
How many job candidates were placed in any 6-month period? Calculate this metric by subtracting any discarded contracts from the total amount of recruitment income to get the total recruitment revenue.
2: Net Profit Margin
The net profit margin indicates how much profit the agency is making per contract sale. This is a crucial metric because it indicates much more than revenue: Subtract expenses related to the recruiting process from the recruitment revenue to achieve the net profit margin. This number will indicate how the agency is performing in the marketplace.
3: Lead Conversion Rate
How much money is spent on acquiring job candidates and clients? As a major expense in recruiting, this measurement will lead to identification of ways to improve growth ratios. Measure total number of new leads per month and divide by new customers per month. The result will be the lead conversion rate.
4: Website Traffic
A key element of recruiting, you’ll want to use a free tool, such as Google Analytics, to count the amount of traffic received on your site. If it needs improvement, add a blog, announcements and industry trend news to further develop interest. Post available jobs and respond to all parties quickly. Improved traffic means a larger pool of candidates for clients.
Each of these steps is easy to compute and provides important information. Use these metrics regularly to ensure your agency is on the fast track to growth.
