Starting your own recruiting agency can be a very profitable venture. But, in order to be successful, you need to track the right metrics. In this blog post, we will discuss the top 8 metrics that you need to focus on when starting a recruiting agency. By tracking these metrics, you can make data-driven decisions that will help your business grow!

These 8 metrics are essential for crafting a business plan. Here is a list of the main metrics that will be discussed in this article. You can also check out an example of a business plan for a staffing agency pdf to use as a guide.

1. Application completion rate

2. Candidate call back metric

3. Candidates per hire metrics

4. Cost per hire rate

5. Employee referral metrics

6. Quality of hire metrics

7. Retention rate

8. Turnover rate

1. Application Completion Rate

The first metric you need to track is your application completion rate. This metric will tell you how many candidates are completing your online application. To calculate this, simply take the number of completed applications and divide it by the total number of applications received. This will give you your completion rate.

2. Candidate Call Back Metric

The next thing you should track is the number of candidates you call back after the initial screening. To find this out, divide the number of candidates called back by the total amount of applications received. The candidate call back metric is important for recruiting companies because it helps them measure the quality of their candidates. If you are only calling back a small percentage of your candidates, then it means that you are not recruiting the best talent. This can have a negative impact on your business.

3. Candidates per Hire Metric

The candidates per hire metric tell you how many candidates you are interviewing for each position. You will divide the number of interviews conducted by the total number of positions filled. Once you arrive at that number you have your candidates per hire rate.

4. Cost per Hire Rate

The cost-per-hire metric is extremely important when running a recruiting agency. This metric will tell you how much you are spending to fill each position. To calculate this, simply divide the total amount of money spent on recruiting by the number of positions filled. By tracking this metric, you can make data-driven decisions that will help your business save money!

5. Employee Referral Metrics

Tracking employee referral metrics is key to success. This number will tell you how many employees are referring candidates to your agency. To calculate this, divide the number of employee referrals by the total number of positions filled. The resulting figure is your employee referral rate.

6. Quality of Hire Metrics

Quality of hire is extremely important for any recruiting company. This metric tells you how successful your company is at recruiting top talent. There are a few ways to measure the quality of hire. One way is to look at the percentage of candidates who are still employed with your company after a certain amount of time. Another way is to look at the number of hires who were in the bottom quartile of their previous company’s performance metric. By tracking the quality of hire, you will be able to identify which recruiting methods are working best and continue to use those methods!

7. Retention Rate

The next metric you need to track is your retention rate. This metric will tell you how many employees are staying with your agency. To find your retention rate, divide the number of employees who have left by the total number of positions filled.

8. Turnover Rate

The last thing you need to track is your turnover rate. This will let you know how many people have left  Your agency’s total number of positions by the number of employees that have departed from said agency. Doing this gives you an accurate reading of your agency’s turnover rate currently is.

By tracking metrics such as application completion rate, candidate call back metric, candidates per hire metrics, cost per hire rate, employee referral metrics, quality of hire metrics, retention rate, and turnover rate you will have a clear picture of how your recruiting agency is performing.  You will also know what changes need to be made in order to better serve your customers in the future.