Smarter KPI’s for Temp & Contract Recruiters

So, last blog we deconstructed crappy perm recruiter KPIs and rebuilt them with a good old ‘backwards plan’.

I called for a show of support from Savage Truth readers interested in a temp/contract backwards plan, and it came in the form of over 60 requests for the plan in the comments section of last week’s blog. Nice response guys!

So now, true to my word, here is the Temp/Contract backwards plan. Which by the way, is very different.

You still start with the ultimate goal and work backwards. But we target different metrics. And so, work with me as we smash through my example Temp plan below.

This plan is for a temp/contract team, because that is often how they are viewed in a business, and often how they are paid. As a team. But it can be very simply adjusted for each individual, by just taking out Line 6 (number of consultants), and dropping in numbers for the target of one recruiter only.

So let’s go!

We start with target Temp GP billings for the team (Line 1, $250,000). Then insert average net margin (after taxes etc.) per hour, and divide total GP margin by margin per hour. This immediately gives you a very cool number, one we should recite in our sleep. The number of temp hours your team need to invoice to hit goal. (Line 3)

Now, here we drop in a funky little number, which is the average assignment length (In hours. Get this from your ATS. Total hours billed last year, divided by number of assignments filled in the year. Bingo! That is the number!). 150 in my example (line 4). Why? Because now, when you divide number of hours needed to bill (Line 3) by average assignment length (line 4), it tells you that you must fill, as a team, 167 assignments per quarter!

Now what gorgeous, sexy, alluring number that is!

Because it’s science, and science cuts through the BS, and the science further tells us that as we have 3 consultants on our temp desk, each of them must fill 56 assignments for the goal to be hit.

And if you divide 56 orders (line 7) by 12 weeks in a quarter (One week always lost due to sickness/holiday), you now know that each recruiter must fill 5 orders per week (or if you like, the team must fill 15 a week).

That’s one a day per recruiter, or three a day for the team.

Simple. Achievable. Measurable. And totally undeniable!

That, my recruiting friends, is a contract recruiter KPI to love and cherish, and deeply fall in love with!

Then, what a smart manager will do is drive fresh KPI’s out of that ‘filled order per week number’, to create backwards planning KPIs for candidate interviews, client visit, job orders taken goals etc. The perm backwards plans of last week can serve as a model for that exercise.

Once again, don’t churn out tedious old KPIs that have no foundation in reality. Work hard with your recruiters to get this data, and to understand the link between each moving part.

Then focus on the measurable, manageable key activities that lead to broader success.

Then your recruiter will see it, understand it, believe it, and act on it.

I also have other backwards plans, but they will have to wait because I am now ‘backwards-planned’ out!

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