We all have heard and most believe, “Knowing your numbers is critical in this business.” Also known as metrics, what are the most important metrics to follow? Tough question since all are important and all build upon each other. Without the desk-builder metrics of job order and candidate presentations there would be no sendouts, and without sendouts there would be no placements.
As a double bred numbers guy (CPA and banker) I have lived my life believing and analyzing numbers. After eight years as owner of an executive search firm — $8,570,487 in collections, 300,982 attempted calls, 33,523 SMP connects, 1,640 first time sendouts, 313 placements, and more falloffs than I want to remember — I am now more than ever convinced the numbers in our business never lie.
This is a human and emotionally charged business. So how is it that the numbers can be so consistent? I think it comes from what I learned from Scott Love’s training: “Humans will do one thing consistently; that which is in their own best interest.” I believe it is this one truth that will give you and your numbers consistent outcomes.
Now I will admit two other factors are important for consistent outcomes. Your metrics will be influenced by two factors:
But, that is what is beautiful about tracking the numbers. If your ratios begin to show a divergence from normal, you can analyze and determine what you are doing differently. And in most cases, can re-train early in the cycle and execute what is needed to “right the ship.”
For example, the first half of this year my office ratios were off the rocker. My wife and I built a new home and were extremely distracted. Our office sendout to placement ratio is normally five first time sendouts to one placement. By the fifth month in construction I noticed our sendout to placement ratio was over 10 to one. Ugh!! We implemented new closing training and heightened awareness to closing. Six weeks later we had the best 45-day period in billings in the history of the office.
The other thing on your metrics is to be consistent in your definitions. For example, we consider:
Below is a quick review sheet of different areas of measurement and corresponding metrics to analyze. Also listed are some suggested areas to assess:
Lack of inventory production
High Inventory – few submittals
High Submittals – few interviews
High Interviews – few placements
Offers – few placements
Tracking the numbers doesn’t have to be complicated, simple Excel spreadsheets will do fine. The important thing is that they be done regularly and consistently. Using metrics will help you guide you and your office through the perils of the recruiting business. And this business gets to be a lot more fun and profitable by assessing and understanding the ratios.