Funny thing about staffing and recruiting firms: sometimes, they need to hire for themselves. Hiring, as people in this industry are well aware, is often a perilous task. A fundamental question to ask is whether it is the right time to hire, and being too cautious can lead to a situation where there is too much work for their current staff. Staffing analytics can help team leaders to know when to add to their team, and when to hold off.
1. Use Activity Ratios to Determine Efficiency
Activity Ratios can show you how efficiently your team is working and has been working in the past. For example (in the image below), in the last twelve months, it’s taken about 4 Job Orders to make 1 Placement.
Knowing this, you can back out whether you need more manpower by examining your goals. In Q1, you want to make 100 Placements. That means it will probably take working 400 Job Orders, according to your ratios. Do you have enough employees to work 400 Job Orders? If not, it is a strong indication that you should expand your team.
2. Track Your Bookings to Determine Trajectory
The Bookings Trajectory is a staple report to have for all companies. It is a near-realtime report of how much you’ve booked to-date, what that trajectory looks like for the coming month, quarter, or year, and a quick comparison to previous time periods. This report is fundamental to any forecasting of your business, and it can also help you forecast whether you need to hire new employees or not.
In the example above, your company is directly on-pace for the goals you set for yourself, which (of course) was set to be higher than last month’s goal. So seeing this, it doesn’t seem like the right time to expand your team; in fact, your team is working at precisely the right pace to hit goals. However, if they are killing themselves working 16 hour days to hit these goals, you might want to consider adding to the team (or at least handing out a Starbucks gift card or two). Unless you have access to a report like this that is updated frequently, understanding your staffing needs in terms of hitting goals will be difficult.
3. Know the Time to Fill of Your Clients to Determine Speed
Say you have a great big client. A whale, if you will; a client you want to keep happy. How do you know if they are actually happy? A good metric is that client’s Time to Fill, and the shorter the better. At the end of the day, if it’s taking your team longer and longer to fill this client’s open jobs, you’re going to lose your whale. Having staffing analytics in place to track Time to Fill sliced at the client level is incredibly important.
In the screenshot above, you see that the cycle for AT&T is fairly long compared to other clients. Is it getting longer? Is it staying the same? The ability to trend this metric month over month will show you which way this client’s Time to Fill is trending. If it’s getting longer, it’s possible there is simply too much work for the employee or employees you have working this client. If AT&T is all of a sudden on a hiring binge, you’ll want to allocate more resources and that may be moving around your staff, or hiring new staff overall.
It’s a fine line between having too many and too little employees at your staffing firm. Do you know where you fall? Staffing analytics can help you hire long before you see a need, making you hire faster, and better, in the future.