Outpace the Competition Using Key Metrics
Ready for a jaw-dropping statistic? Every day, we create 2.5 quintillion bytes of data ―so much that 90% of the data in the world today has been created in the last two years alone, according to IBM. That’s a lot of data. The “Big Data” trend has been brewing for some time, and has been covered over the past few months by a variety of prominent news outlets like Forbes, the New York Times and the Wall Street Journal. Although somewhat of a buzzword, Big Data has become increasingly important for recruiting and talent acquisition professionals. The term itself refers to the analysis of copious amounts of transactional and business data to gain deep, analytical insight into customer behaviors. Recruitment firms have always had data to use for decision-making, but only in the last few years have the tools emerged to capture data so comprehensively – and analyze it so easily.
Today, data-fueled decisions can be a significant source of competitive differentiation and business advantage. Here’s a great example of how data can be used to help speed recruitment, albeit corporate recruitment, but it’s still applicable here. Milan-based eyeglasses conglomerate, Luxottica Group, used statistical analysis to reduce their company’s time to hire by almost 52%. Their data showed that it took an average of 96 days to fill a position with an external candidate. While the management team thought it was the recruiters being slow, the data proved it was actually the hiring managers taking a long time to make decisions on who to hire. It now takes the Luxottica Group 46 days to hire an external candidate, according to the Wall Street Journal. Your team’s activities generate a great deal of data each day, but there is not much power in the data alone without the analysis to provide insight into how your company is truly performing. One of the greatest tools at your disposal is benchmarking. If you missed our Bullhorn Live session on “2012 Benchmark Data,” you can check out the presentation below to help you think about benchmarking your firm against your industry peers.
How can you start taking advantage of big data in your firm? Using the data we’ve gained from the number and breadth of recruiters using our system, we recommend that you start looking at the following key metrics, if you don’t already:
Standard Ratios: Standard ratios consist of the simple, straightforward metrics including fill rates, interview-to-hire rates, hit rates, etc. You may already use some of these ratios to measure your team’s performance and tie compensation to hitting certain targets. Taking a broader view, comparing your performance to that of your competition can highlight key areas where you can improve. For example, looking at the data of firms that attended the June 2012 Bullhorn Live conference, firms are filling 15-20% of their jobs. How do you stack up?
Sourcing Effectiveness: How much are you using your best — i.e., low cost or high quality sources? How many candidates come from each source? Can you calculate the ROI of each source by looking at your spend per candidate (or even spend per placement)? Are you satisfied with the quality of the candidates sourced by each one of your recruiters? Looking at the Bullhorn Live data that we analyzed, on average 11% of all candidates were sourced from within existing networks (networking events, online social networks) this year, while 41% were sourced through top job boards. Looking at this set of data can show you the actual ROI of each source. Then you’ll be better equipped to determine where to invest your resources & efforts.
Client Satisfaction: Human resources demands are immediate ― are you filling positions in a timely manner? How many of the reqs you’re given by a certain client do you actually fill? As a premier recruiting firm, it is your job to provide your clients with 100% customer satisfaction. Many agencies have at least a few clients for whom they fill the majority of reqs – in fact, we found that agencies fill over 75% of reqs for about 10% of their clients. Use these metrics to determine where you’re adding loads of value and which clients may need a bit more care and feeding. And, be sure to share your success stories with clients and prospects alike.
What is your big data telling you? How is your team performing? How does your firm stack up against others in the industry? Bullhorn’s comprehensive business intelligence offerings can help you answer these questions, along with countless others that will help you run your business more effectively. Contact your Account Manager today to find out how Bullhorn can help you harness your data more fully and secure a competitive advantage.
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This Bullhorn Blog post was written by Ashley Healy.
Ashley Healy specializes in integrated marketing communications and a wide range of marketing activities including social media management, SEO copywriting, content marketing, promotional strategies and employment branding. She previously worked as Content Marketing Manager at Bullhorn and prior to that, as a copywriter and marketing coordinator at Verndale, a full-service digital agency.