“Metrics” isn’t a dirty word that some people use as a report card; it should be used as a tool to help people succeed. We can breakdown metrics into two topics, productivity and efficiency. Productivity is how hard one works, as measured by the number of telemarketing, tele-recruiting or email conversations one has over a period of time. Efficiency is how that is converted by a series of steps to a placement, i.e. job orders/telemarketing and e-mail conversation; candidates/tele-recruiting call and email conversations; placement/job order (fill ratio), send outs/resume submitted, hours/placement (assignment filled), margin cost/bill, cost (margin rate), etc. If these values are high one will make more placements and everyone wins, however, there are tradeoffs. For example, if one prices (margin rate) are too high their fill ratio will suffer and so will their margin cost and commissions. A profitability algorithm integrates the various term into how many margin costs are generated so one can evaluate these tradeoff to make the best decision.
How have you used metrics to help your team succeed?
Optimal Management is the premier management consulting company to the staffing industry. We act as mentors to owners and managers to maximize their sales, profits and value of their company. We become an extension of our clients operations and are there for all of their staffing and business needs, from sales, marketing and compensation plans, to finance, M&A, general management and everything in between.
Source: Optimal Blog