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“Metrics are the language of business,”
    said Donald E. Breckenridge Jr., President
    and CEO of Sendouts.

    “Anything that can be measured can be
    improved. Without metrics, it’s difficult to
    understand exactly where to focus your efforts
    for obtaining job orders, making placements and
    increasing revenue.” The recruiting process may
    have subtleties specific to a certain industry or
    type, but there are underlying metrics and steps
    needed to measure the health of your business.
    The key steps in the process are:

             •   Marketing call effectiveness
             •   Job order coverage ratio
             •   Job order response time
             •   Quality of candidates submitted
             •   Quality of candidates interviewed
             •   Quality of hire
             •   Job order fill ratio
             •   Time to fill

    In this book, Sendouts will identify key metrics
    for each of these steps and help you understand
    how to increase your recruiting efficiency and
    effectiveness so you can make more placements
    and more money.
1
Marketing Call Effectiveness
Key metric
Marketing Calls to Job Order Ratio

Definition
The number of marketing calls it takes to obtain
a job order.

What you need to know
Marketing call to job order ratio shows how
many calls you make before obtaining a job
order, contract or temp assignment. At the end
of 2008 and beginning of 2009, this metric
quickly changed and many recruiters found that
it required more than 120
marketing calls to obtain a      Use this metric
job order. Recruiters needed
to increase their number of      to calculate how
marketing calls in response      many calls you
– in some cases tripling or      need to make
quadrupling the number
of calls just to bring in the    each day.
same number of job orders.
As hiring rebounds, this number is dropping
below 90 calls.



                                                   2
Job Order Coverage Ratio
    Key metric
    Open Job Orders with at least
    one Submitted Résumé

    Definition
    This is the percentage of open job orders where
    you have sent at least one résumé.

    What you need to know
    This metric is important for recruitment firms
    managing a larger number
    of job orders because it is an    When you get
    indicator as to how well you      a job order,
    are serving your clients. If
    this percentage is low, it could
                                      you need to
    indicate that either the quality get a qualified
    of job orders you’re taking is    candidate in
    low, that you need additional
    horsepower in sourcing and
                                      front of the
    recruiting or that you’re         client quickly.
    focusing too much effort on
    just a few job orders.




3
Job Order Response Time
Key metric
Time from New Job Order
to First Résumé Submission

Definition                      Get the
This metric is the average      business by
time it takes to submit a       getting the
résumé after obtaining a new
job order.                      résumé to the
                                hiring manager
What you need to know           first.
This metric shows how quickly
you are able to respond to
your clients. In staffing and
recruiting, the business often
goes to the recruiter who
submits the best résumé or candidate to the
hiring manager first. A fast response typically
indicates that you have an excellent pool of
existing candidates and/or you are able to source
qualified candidates quickly. Remember that you
compete on speed, quality and price. This helps
to measure speed at a crucial point early in the
process. As a recruiter, you don’t want to get
beat by another recruiter submitting a qualified
candidate.
                                                    4
Quality of Candidates Submitted
    Key metric
    Résumés Submitted to               Effective
    Sendout Ratio                      recruiters
    Definition                         provide the
    This ratio is the number of        hiring manager
    résumés that are submitted         with just the
    to the client before getting
    a sendout (a sendout is            top candidates.
    a candidate who is being
    interviewed by a hiring
    manager).

    What you need to know
    If you are submitting résumés to a hiring
    manager but not getting any sendouts, it’s
    probably because you are sending résumés that
    don’t fit the needs for the position. Your job as
    a recruiter is to identify well-qualified candidates
    and send the top few résumés, usually three, to
    the hiring manager. If you submit 10 résumés,
    then you have not done your job to filter them
    down to just the top candidates. If you send just
    one, then you haven’t given your client enough
    choices to really make a sound hiring decision.


5
Quality of Candidates Interviewed
Key metric
Sendout to Placement Ratio

Definition
The number of sendouts it takes to make a
placement

What you need to know
A good sendout-to-placement ratio is in the
area of 3 or 4 to 1. A high ratio may mean that
you’re dressing up the résumé but not thoroughly
qualifying or interviewing the candidate yourself.
During a recession, this ratio can easily increase
if the hiring managers are taking too long to
make a decision and the
candidates are moving on to       To make a
other opportunities. Tracking
this metric can help you          placement,
optimize your work and see        you must have
clearly if two or three extra     sendouts.
sendouts each month could
lead to an extra placement.




                                               6
Quality of Hire
    Key metric
    Percentage of placed candidates still on the job
    after one year

    Definition                        Placements
    How many candidates have
    not quit or been terminated
                                      remaining
    after their first year.           after a year is
                                      the ultimate
    What you need to know
    This metric is the ultimate
                                      indicator of
    display of how well you           great recruiting.
    are able to place the right
    candidates in the right jobs. Being able to say
    that 98 percent of the candidates you place are
    still on the job after the first year will tell your
    clients a lot about the quality of your work and
    your ability to fulfill their needs. To track this
    metric year over year, build in reminders in your
    CRM to ask your clients about the candidates
    you placed. You should also consider tracking
    the candidate source in your CRM. Are certain
    companies, schools or referral sources proving to
    be consistent sources of high-quality candidates?



7
Job Order Fill Ratio
Key metric
Job Order Fill Ratio

Definition
The ratio of job orders written to job orders you
have filled.

What you need to know
If your fill ratio is low, this suggests that
your firm has too many jobs and not enough
recruiters. It could also mean
that you are taking jobs that        Don’t waste a
can’t be filled. Or it could
                                     ton of time on
mean that you, as the account
manager, are not gathering           jobs that are
the appropriate information to unfillable.
conduct an effective search.
You need to focus on getting
the right information from the hiring manager to
be able to find the right candidates.




                                                    8
Time to Fill
    Key metric
    Time-to-fill ratio

    Definition
                                     Increase
    Time to fill is the length of    efficiency, but
    time from receiving a job        not at the
    order to filling it.
                                     expense of
    What you need to know            quality.
    This is the most basic of the
    metrics, because it’s all about
    quality and time. Time to fill will vary depending
    on your industry, the type of position and other
    variables. However, you should remember that
    open positions cost clients money, and the ability
    to fill positions quickly establishes your value
    as a recruiter. Filling a position quickly with
    an unqualified candidate can hurt your overall
    recruiting quality and lead to turnover. Know the
    benchmarks for your industry, but be careful to
    balance speed and quality.




9
Conclusion
Metrics are important for any business, but in the
staffing and recruiting industry, these analytics are
crucial. Recruiting metrics that are accessible and
used appropriately can provide insight into trends and
changing market conditions in real-time.

Because of the benefits, it would seem that every
recruiting firm would use metrics, but that’s not the
case. Some recruiters believe that aggregating and
analyzing their metrics is either too difficult, takes
too much time or won’t yield a significant benefit.
Undoubtedly, those recruiters are missing out.

Metrics can vary depending on the type of recruiter you
are and your industry niche. Also, numbers can change
with the fluctuations of the economy. However, you
cannot improve what you don’t measure. As veteran
recruiting trainer Barb Bruno explains, “In any given
quarter, you can see trends and you can adjust the way
you work, based on your numbers.”

The right CRM can significantly benefit your recruiting.
To find out more about how Sendouts can help,
visit us online at www.sendouts.com or call
1 (877) 309-5222.


                                                           10
About Sendouts
Sendouts™ is the leading, single source provider of recruiting
software for third party recruiting and staffing firms. Sendouts
Surge Web-based recruiting software enables recruiting firms
to streamline their recruiting process, increase productivity,
and make more placements. Additionally, Sendouts provides
unparalleled training and support and is backed by an industry
leading 98% customer satisfaction rate. Sendouts clients on
average achieve an internal growth rate of 48% and increase
job order fill rates by over 20%. Sendouts helps more than
1000 firms automate and manage the entire recruiting
process, from sales to final placement. For more information,
visit www.sendouts.com or call 877-309-5222.

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Bluebook

  • 1.
  • 2. “Metrics are the language of business,” said Donald E. Breckenridge Jr., President and CEO of Sendouts. “Anything that can be measured can be improved. Without metrics, it’s difficult to understand exactly where to focus your efforts for obtaining job orders, making placements and increasing revenue.” The recruiting process may have subtleties specific to a certain industry or type, but there are underlying metrics and steps needed to measure the health of your business. The key steps in the process are: • Marketing call effectiveness • Job order coverage ratio • Job order response time • Quality of candidates submitted • Quality of candidates interviewed • Quality of hire • Job order fill ratio • Time to fill In this book, Sendouts will identify key metrics for each of these steps and help you understand how to increase your recruiting efficiency and effectiveness so you can make more placements and more money. 1
  • 3. Marketing Call Effectiveness Key metric Marketing Calls to Job Order Ratio Definition The number of marketing calls it takes to obtain a job order. What you need to know Marketing call to job order ratio shows how many calls you make before obtaining a job order, contract or temp assignment. At the end of 2008 and beginning of 2009, this metric quickly changed and many recruiters found that it required more than 120 marketing calls to obtain a Use this metric job order. Recruiters needed to increase their number of to calculate how marketing calls in response many calls you – in some cases tripling or need to make quadrupling the number of calls just to bring in the each day. same number of job orders. As hiring rebounds, this number is dropping below 90 calls. 2
  • 4. Job Order Coverage Ratio Key metric Open Job Orders with at least one Submitted Résumé Definition This is the percentage of open job orders where you have sent at least one résumé. What you need to know This metric is important for recruitment firms managing a larger number of job orders because it is an When you get indicator as to how well you a job order, are serving your clients. If this percentage is low, it could you need to indicate that either the quality get a qualified of job orders you’re taking is candidate in low, that you need additional horsepower in sourcing and front of the recruiting or that you’re client quickly. focusing too much effort on just a few job orders. 3
  • 5. Job Order Response Time Key metric Time from New Job Order to First Résumé Submission Definition Get the This metric is the average business by time it takes to submit a getting the résumé after obtaining a new job order. résumé to the hiring manager What you need to know first. This metric shows how quickly you are able to respond to your clients. In staffing and recruiting, the business often goes to the recruiter who submits the best résumé or candidate to the hiring manager first. A fast response typically indicates that you have an excellent pool of existing candidates and/or you are able to source qualified candidates quickly. Remember that you compete on speed, quality and price. This helps to measure speed at a crucial point early in the process. As a recruiter, you don’t want to get beat by another recruiter submitting a qualified candidate. 4
  • 6. Quality of Candidates Submitted Key metric Résumés Submitted to Effective Sendout Ratio recruiters Definition provide the This ratio is the number of hiring manager résumés that are submitted with just the to the client before getting a sendout (a sendout is top candidates. a candidate who is being interviewed by a hiring manager). What you need to know If you are submitting résumés to a hiring manager but not getting any sendouts, it’s probably because you are sending résumés that don’t fit the needs for the position. Your job as a recruiter is to identify well-qualified candidates and send the top few résumés, usually three, to the hiring manager. If you submit 10 résumés, then you have not done your job to filter them down to just the top candidates. If you send just one, then you haven’t given your client enough choices to really make a sound hiring decision. 5
  • 7. Quality of Candidates Interviewed Key metric Sendout to Placement Ratio Definition The number of sendouts it takes to make a placement What you need to know A good sendout-to-placement ratio is in the area of 3 or 4 to 1. A high ratio may mean that you’re dressing up the résumé but not thoroughly qualifying or interviewing the candidate yourself. During a recession, this ratio can easily increase if the hiring managers are taking too long to make a decision and the candidates are moving on to To make a other opportunities. Tracking this metric can help you placement, optimize your work and see you must have clearly if two or three extra sendouts. sendouts each month could lead to an extra placement. 6
  • 8. Quality of Hire Key metric Percentage of placed candidates still on the job after one year Definition Placements How many candidates have not quit or been terminated remaining after their first year. after a year is the ultimate What you need to know This metric is the ultimate indicator of display of how well you great recruiting. are able to place the right candidates in the right jobs. Being able to say that 98 percent of the candidates you place are still on the job after the first year will tell your clients a lot about the quality of your work and your ability to fulfill their needs. To track this metric year over year, build in reminders in your CRM to ask your clients about the candidates you placed. You should also consider tracking the candidate source in your CRM. Are certain companies, schools or referral sources proving to be consistent sources of high-quality candidates? 7
  • 9. Job Order Fill Ratio Key metric Job Order Fill Ratio Definition The ratio of job orders written to job orders you have filled. What you need to know If your fill ratio is low, this suggests that your firm has too many jobs and not enough recruiters. It could also mean that you are taking jobs that Don’t waste a can’t be filled. Or it could ton of time on mean that you, as the account manager, are not gathering jobs that are the appropriate information to unfillable. conduct an effective search. You need to focus on getting the right information from the hiring manager to be able to find the right candidates. 8
  • 10. Time to Fill Key metric Time-to-fill ratio Definition Increase Time to fill is the length of efficiency, but time from receiving a job not at the order to filling it. expense of What you need to know quality. This is the most basic of the metrics, because it’s all about quality and time. Time to fill will vary depending on your industry, the type of position and other variables. However, you should remember that open positions cost clients money, and the ability to fill positions quickly establishes your value as a recruiter. Filling a position quickly with an unqualified candidate can hurt your overall recruiting quality and lead to turnover. Know the benchmarks for your industry, but be careful to balance speed and quality. 9
  • 11. Conclusion Metrics are important for any business, but in the staffing and recruiting industry, these analytics are crucial. Recruiting metrics that are accessible and used appropriately can provide insight into trends and changing market conditions in real-time. Because of the benefits, it would seem that every recruiting firm would use metrics, but that’s not the case. Some recruiters believe that aggregating and analyzing their metrics is either too difficult, takes too much time or won’t yield a significant benefit. Undoubtedly, those recruiters are missing out. Metrics can vary depending on the type of recruiter you are and your industry niche. Also, numbers can change with the fluctuations of the economy. However, you cannot improve what you don’t measure. As veteran recruiting trainer Barb Bruno explains, “In any given quarter, you can see trends and you can adjust the way you work, based on your numbers.” The right CRM can significantly benefit your recruiting. To find out more about how Sendouts can help, visit us online at www.sendouts.com or call 1 (877) 309-5222. 10
  • 12. About Sendouts Sendouts™ is the leading, single source provider of recruiting software for third party recruiting and staffing firms. Sendouts Surge Web-based recruiting software enables recruiting firms to streamline their recruiting process, increase productivity, and make more placements. Additionally, Sendouts provides unparalleled training and support and is backed by an industry leading 98% customer satisfaction rate. Sendouts clients on average achieve an internal growth rate of 48% and increase job order fill rates by over 20%. Sendouts helps more than 1000 firms automate and manage the entire recruiting process, from sales to final placement. For more information, visit www.sendouts.com or call 877-309-5222.