In the movie Moneyball, which is based on a true story, the Oakland A’s choose their baseball team roster based entirely on statistics and end up wildly successful. You may not have the vast, intricate data that statistician Peter Brand used, but you can take advantage of talent management metrics to achieve similar wins. Staffing software can highlight trends within your recruiting firm, show results of both recruiters and placed talent, and offer you actionable data to guide your decisions.
“Big data is supposed to solve the problem of Moneyball and talent. Maybe,” writes Raghav Singh, global staffing and talent acquisition expert at The A-List, in his post Moneyball and Recruiting: The Future of Hiring or Pie in the Sky? “One can only use data — big or small — if it exists.” Well, you may be in luck. The four tips, shown as computations below, can shed light on how your recruiting firm is performing… if you’re tracking the data.
Tip 1: This Quarter’s (Job Placements / Job Openings) [< > or =] Last Quarter’s (Job Placements / Job Openings) = Company Performance.
In Moneyball, Brand used data to determine whether star players were performing as expected. In recruiting, this talent management metric allows you to determine whether you’re delivering the quality of applicants your clients seek. It’s determined by calculating the percent of job requirements that have been met by your applicants during the last month or quarter. Compare that percent to the previous quarter and the same quarter of the previous year to deem if changes need to be made to your recruiting and screening processes.
- If the percent has decreased, pinpoint areas for improvement for your recruiting team. For example, give your team a refresher course on tweaking candidates’ resumes per job orders. Recruiting software that automatically creates a new resume with your company’s logo and lets recruiters easily edit each resume may speed this task and improve your team’s results.
- If your applicant quality is the same over the last year, challenge your team to ramp up recruiting efforts. Hold a seminar using LinkedIn to recruit passive talent. Have a training session that delves into how to pinpoint millennial candidates who will best match particular clients.
- If your recruiting firm is improving the percentage of job requirements met, good work! Analyze changes you’ve made or tactics you’ve started to use so you can build on them. This is a great opportunity to tap into your star performers and have them share their best practices with the rest of the recruiting team.
Tip 2: Number of Completed Activities / Number of Scheduled Activities = Recruiter Performance.
The Oakland A’s worked quietly to use data that pinpointed lesser-known baseball players who had potential. Before placing quality applicants, your recruiting team is hard at work behind the scenes. Recruiting software can track the number of scheduled and finished activities and how they measure up to your staffing firm’s goals. It lets you view a number of talent management metrics, including whether a recruiter is completing assigned communications, interviews, goals for placements and other tasks. If a recruiter is lagging behind, determine obstacles and pinpoint tactics to overcome them.
Tip 3: (Unfilled Openings + Number of Candidates Who Are Placed But Quickly Quit or Are Fired) / Job Openings = Failure Rate.
The Oakland A’s used statistics to pinpoint underperforming high-salary players on the roster who they should trade. For staffing firms, failure rates can be viewed as a source of valuable information that can help your staffing firm improve. Review what went wrong and where mistakes were made.
You may discover that your team needs to acquire more in-depth job definitions from your clients that delve into day-to-day tasks and other specifics. You may need to implement additional screening steps, including skills assessments. Or you may need to be screening candidates for certain traits.
“Coachability is the number one reason new hires fail,” writes Andrew Greenberg, CEO and president of Recruiting Division, in Hiring for Attitude: Why 81% of New Hires Will Fail. “26 percent of new hire[s] fail due to their inability to accept feedback from those they work with, including bosses, colleagues, and customers.” Greenberg recommends asking candidates about whether or not they’ve been coached and what they think about it and what their former boss would say about them.
Tip 4: Accepted Offers / All Offers = Acceptance Rate.
In Moneyball, the team had very limited funds and sought players who would accept lower salaries. Your candidates need to have clarity about salary so they’re ready to accept a position if an offer is made. If your candidates are making it through the interview process but then turn down the offer, your team has invested a lot of time and effort for no gain. Tracking acceptance rates gives insight about changes that may need to be made. For example, are your recruiters crystal clear about salaries that will be offered, benefits, corporate culture and daily job tasks? Your recruiters may need pointers on establishing salaries and benefits prior to the interview process.
Your recruiting firm doesn’t need the meticulous data used by the characters in Moneyball, but there is valuable insight to gather from metrics. Whether it’s increasing training for your recruiting team or keeping tabs on talent opportunities, talent management metrics give you actionable data to help you take your team and recruiting company to Major League success.
Your staffing agency can access helpful data in addition to talent management metrics. Discover metrics that shed light on your staffing firm’s financial health and sales funnel with our on-demand webinar, Developing Metrics That Drive Growth and Profitability.