Leveraging Analytics to Improve the Bottom Line
Digital transformation is driving business growth, and this applies to recruitment industry too.
Data is an incredibly useful tool for a recruitment agency. Here's our guide to making use of analytics to improve your hiring ability.
Big data is everywhere. Businesses everywhere are utilising the vast amounts of information available about their industry, their customers and their own internal processes to improve, becoming more efficient and profitable. So why should your recruitment agency be any different?
In theory, every recruiting business should have access to reams of data. Lists of clients, how many people you've placed in each company, what fees you've charged, which member of your agency made the most hires; all of this and more should be at your fingertips. The challenge is bringing it all together, in an efficient way and making good use of it.
This latter element is probably the main struggle for agencies looking to become more data-driven. It's no good having all of this information if you can't quickly and easily analyse it, or if you don't know what it is you're looking for. So here are a few tips on leveraging analytics in order to make your recruitment firm more profitable.
Improve your Bottom Line
The average time to hire in the UK is around 33 days, but do you know how long it takes you to source the right candidate? How fast can you fill a role? What are the bottlenecks in your process? Do you know the answers to these questions about your business?
Having this information readily available is key to growing your business and to do this you need a system in which you can visualize your recruitment analytics, including dashboards, and customised reports, a solution that includes metrics such as turnover, Client and Candidate performance analysis, Vacancies analysis, Roles written and invoiced and Spend reports including wages and advertising. Ditching spreadsheets and taking advantage of accurate, real-time analytics will enable you to see what’s happening in your business and perhaps, more importantly, why it’s happening which means you can act quickly and ultimately improve your bottom line.
Improve your Retention
Securing repeat business as a recruiter means showing your clients that you can provide them with the right employees. However, if you place a skilled candidate in a position only to have them leave that company within a month, it's not actually going to provide your client with much value.
Increasing the time your hires stay in their jobs will improve your client relationships, leading to more repeat business. LinkedIn research has found that increasing retention is the most common use of recruitment data, with 56% of recruiters and HR professionals using their information for this purpose.
You can use the information you almost certainly already have to understand this process. For example, perhaps you're often placing candidates in jobs they feel overqualified for. You could look at all the people who lasted less than three months in the roles they were placed in and compare it to their highest qualification. This could show you a trend you can use to improve retention.
Discover the Best Candidates
The most difficult part of recruitment, according to a recent survey from Ideal, is screening candidates from a large recruitment pool. Some 52% of talent acquisition leaders agree this is the hardest element of their job. However, data analytics can make it a lot easier.
You can use analytics software to immediately screen your database of CVs for a job's minimum requirements, cutting out hours of sifting through applications. You can also use your information to analyse how you've placed candidates in the past and who your best recruiters are to fill certain roles enabling you to improve your methods and get better at recruiting the top talent.
Find a Software Package
Accurate MI is the backbone to any successful business but having plenty of data at your fingertips is no use if you can't easily access and analyse it. Your CRM may well include a reporting feature, but how advanced is it? If you want your data analytics to matter then the link between your analytics and business decisions needs to be stronger.
Software like Boomerang Analytics means you can access the information you need at the click of a button, allowing you to easily see and assess the state of your recruitment agency at a glance. With accurate, real-time analytics, you can see what’s happening in your business and perhaps more importantly why it’s happening which means you can act quickly.
You can also use this type of software to gain visibility over your staff, showing you which members of your team have made the most valuable placements and allowing you to set targets for them to meet. This will give you more ability to tailor your business in order to improve profits.
Leveraging big data will allow you to make strategic decisions that help you build a stronger, data-led business.
Katie Duke, Marketing Manager
Boomerang Back Office