Stop Kidding Yourself - The Numbers Matter
Stop kidding yourself! If you don’t know your numbers, you’re working blind and the likelihood of reaching your full potential, as a recruiter, is very much in doubt.
It is a fact that achievement oriented people know their numbers in most, if not all, aspects of their daily activity. These top producers, Big Billers, realize their numbers provide both a quantitative and qualitative measurement of how efficient and effective they are as staffing professionals.
In stark contrast, most recruiters/consultants who do not keep track of their numbers tend to be average to below average producers who spend the majority of their working day engaged in avoidance behaviors. They focus on pleasing processes versus productive results. They don’t want to keep track of their numbers because they don’t want to be held accountable. These individuals, who unfortunately make up a sizeable portion of our industry, waste approximately 50% of their time, energy, and resources everyday (see The Fordyce Letter - 07/04 “Is Nothing Better Than Something?”)
So, if you seriously want to know how you are really doing, keep track of your numbers. Accurate numbers will clearly demonstrate the facts about your work. No more “kidding yourself.” The numbers don’t lie. From the numbers you will learn how to better utilize your time, and how to increase your overall effectiveness and production.
What numbers should you monitor?
Let’s start with the three most important, the Key Performance Ratios.
One: Qualified Orders/Searches to Placements Ratio.
(Top producers range from 3 to 1 or tighter for contingency, 1 to 1 for exclusive/retainer)
Two: Candidate Presentations (not resume submittals) to First Time Interview Ratio.
(Top producers generally do not exceed 2 to 1)
Three: First Time Interview to Placements Ratio.
(Top producers generally are less than 6 to 1)
Obviously, the numbers for top producers reflect directly on the qualitative nature of their work. They do not waste time on long shots or low odds situations. They know how to work smart and stay focused. Therefore, their ratios tend to be considerably better than those of an average producer.
Using the above numbers as an example, a producer who has an average fee of £10,000 and consistently closes two placements per month (should be a minimum requirement for anyone with more than two years in the business) would bill £240,000 per year with the following numbers (being conservative and using the highest numbers):
72 Qualified Orders/Searches (1.38 per week)
288 Candidate Presentations (5.5 per week)
144 Candidate First Time Interviews (2.8 per week)
Although £240,000 in annual production does not reflect a top producer, the ratios in this example speak for themselves.
The three Key Performance Ratios serve as the foundation for all the other numbers that should also be monitored. These include:
Total phone time per day (minus personal calls). Average producers spend approximately two hours per day on the phone while top producers many times average twice that amount. You can of course monitor time on the phone through call accounting software.
Attempts versus Marketing Calls Completed (had a two way conversation with the party you were trying to reach).
Marketing Calls Completed versus Qualified Orders/Searches Taken.
Attempts versus Recruiting Calls Completed (had a two way conversation with the party you were trying to reach).
Recruiting Calls Completed versus Qualified Candidates Recruited (qualified and interested in one or more of your active orders/searches).
Your Average Fee (total billings divided by total placements).
These numbers and ratios will vary from producer to producer, depending on their skill level, work ethic, commitment to the business, and, in some instances, even their specialty. But don’t kid yourself into thinking your situation is so unique that tracking your numbers is not important.
By actively monitoring the numbers, you will quickly learn exactly how much time must be allocated to each activity on a daily basis in order to achieve your desired performance ratios. Developing a valid daily, weekly, and monthly plan depends on knowing your numbers and it is virtually impossible to set realistic goals without them.
Another very important by-product of knowing your numbers is they serve as a primary indicator of how well you are progressing in your personal skills development as a staffing professional.
Remember
Your numbers reflect more than just the quantity of your activity and effort. They reflect the quality of your work, particularly through the Key Performance Ratios.
If you are truly interested in continued growth as a professional, you must know your numbers. Although they may not be a total reflection of who you are and what you may yet accomplish, they nevertheless remain the most reliable tool for timely and unbiased performance feedback. They reflect both your strengths and weaknesses, what skills need continued development and which skills are yet to be learned. Knowing your numbers will allow you to draw a personal blueprint for success in this business and that’s a big part of working smart.
Fact
Your numbers are real whether you monitor them or not.
So, why not monitor them and see what you learn. Make the numbers work for you. Allow them to serve as your personal guide to higher production and greater professional growth and satisfaction?
Terry Petra is one of the recruitment industry’s leading trainers and consultants. He has successfully conducted in-house programs for hundreds of search, placement, temporary staffing firms and industry groups across the U.S., Canada, Mexico, Australia, New Zealand, Russia, England, and South Africa.
It is a fact that achievement oriented people know their numbers in most, if not all, aspects of their daily activity. These top producers, Big Billers, realize their numbers provide both a quantitative and qualitative measurement of how efficient and effective they are as staffing professionals.
In stark contrast, most recruiters/consultants who do not keep track of their numbers tend to be average to below average producers who spend the majority of their working day engaged in avoidance behaviors. They focus on pleasing processes versus productive results. They don’t want to keep track of their numbers because they don’t want to be held accountable. These individuals, who unfortunately make up a sizeable portion of our industry, waste approximately 50% of their time, energy, and resources everyday (see The Fordyce Letter - 07/04 “Is Nothing Better Than Something?”)
So, if you seriously want to know how you are really doing, keep track of your numbers. Accurate numbers will clearly demonstrate the facts about your work. No more “kidding yourself.” The numbers don’t lie. From the numbers you will learn how to better utilize your time, and how to increase your overall effectiveness and production.
What numbers should you monitor?
Let’s start with the three most important, the Key Performance Ratios.
One: Qualified Orders/Searches to Placements Ratio.
(Top producers range from 3 to 1 or tighter for contingency, 1 to 1 for exclusive/retainer)
Two: Candidate Presentations (not resume submittals) to First Time Interview Ratio.
(Top producers generally do not exceed 2 to 1)
Three: First Time Interview to Placements Ratio.
(Top producers generally are less than 6 to 1)
Obviously, the numbers for top producers reflect directly on the qualitative nature of their work. They do not waste time on long shots or low odds situations. They know how to work smart and stay focused. Therefore, their ratios tend to be considerably better than those of an average producer.
Using the above numbers as an example, a producer who has an average fee of £10,000 and consistently closes two placements per month (should be a minimum requirement for anyone with more than two years in the business) would bill £240,000 per year with the following numbers (being conservative and using the highest numbers):
72 Qualified Orders/Searches (1.38 per week)
288 Candidate Presentations (5.5 per week)
144 Candidate First Time Interviews (2.8 per week)
Although £240,000 in annual production does not reflect a top producer, the ratios in this example speak for themselves.
The three Key Performance Ratios serve as the foundation for all the other numbers that should also be monitored. These include:
Total phone time per day (minus personal calls). Average producers spend approximately two hours per day on the phone while top producers many times average twice that amount. You can of course monitor time on the phone through call accounting software.
Attempts versus Marketing Calls Completed (had a two way conversation with the party you were trying to reach).
Marketing Calls Completed versus Qualified Orders/Searches Taken.
Attempts versus Recruiting Calls Completed (had a two way conversation with the party you were trying to reach).
Recruiting Calls Completed versus Qualified Candidates Recruited (qualified and interested in one or more of your active orders/searches).
Your Average Fee (total billings divided by total placements).
These numbers and ratios will vary from producer to producer, depending on their skill level, work ethic, commitment to the business, and, in some instances, even their specialty. But don’t kid yourself into thinking your situation is so unique that tracking your numbers is not important.
By actively monitoring the numbers, you will quickly learn exactly how much time must be allocated to each activity on a daily basis in order to achieve your desired performance ratios. Developing a valid daily, weekly, and monthly plan depends on knowing your numbers and it is virtually impossible to set realistic goals without them.
Another very important by-product of knowing your numbers is they serve as a primary indicator of how well you are progressing in your personal skills development as a staffing professional.
Remember
Your numbers reflect more than just the quantity of your activity and effort. They reflect the quality of your work, particularly through the Key Performance Ratios.
If you are truly interested in continued growth as a professional, you must know your numbers. Although they may not be a total reflection of who you are and what you may yet accomplish, they nevertheless remain the most reliable tool for timely and unbiased performance feedback. They reflect both your strengths and weaknesses, what skills need continued development and which skills are yet to be learned. Knowing your numbers will allow you to draw a personal blueprint for success in this business and that’s a big part of working smart.
Fact
Your numbers are real whether you monitor them or not.
So, why not monitor them and see what you learn. Make the numbers work for you. Allow them to serve as your personal guide to higher production and greater professional growth and satisfaction?
Terry Petra is one of the recruitment industry’s leading trainers and consultants. He has successfully conducted in-house programs for hundreds of search, placement, temporary staffing firms and industry groups across the U.S., Canada, Mexico, Australia, New Zealand, Russia, England, and South Africa.
Replies to This Discussion
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Permalink Reply by John Jebb on -
Absolutely spot on. If we don’t know how well we’re doing how can we lead by example and expect our staff to hit their targets. I personally go further with this monitoring and chart the progression of leads/opportunities to signed off search assignments. I’ve had consultants working for me in the past who were keeping to high call rates, but having lots of nice conversations with prospective clients doesn’t put the money in the bank!
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Permalink Reply by Ben Thomas on -
'Numbers never lie', too true... In my experience as a Head-Hunter the best sales individuals, regardless of industry know just where they are and what they need to do to get where they are going. I say 'where they are going' because that is an additional differentiator. Achievers don't just have objectives and goals, 'dreams' if you like, they have solid targets and action plans. They know what they need to do, they've broken it down, they work the plan, they adapt the plan according to market circumstances, they move forward and they always achieve the plan. Sometimes you can look at a CV and say 'wow!' what an achiever, are they just lucky? But then you speak to them and every time, there is energy, there is passion, there is knowledge, but above all there is a plan and they know where they are in that plan. 'Fail to plan, plan to fail' is the adage and when it comes to numbers, that has to be the first step in making that plan a reality. Just one caveat; to over plan is as much a crime as to not plan. So often in our business, I have seen bosses obsessed with the minutiae of numbers, this leads inevitably to 'analysis paralysis' and ultimate failure, at least if you want to work quality markets. If it becomes just a numbers game, then you may as well just stay in the database market. My advice is 'work smart', 'work hard', 'work the plan', but don't get obsessed, just know where you are and use the numbers to crank up or adjust where you are headed. The numbers never lie, too true...
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