5 Key Metrics to Measure the Effectiveness of Your Temping Agency

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Are you using the services of a temporary staffing agency? Then it is important to ensure that they are demonstrating accountability and meeting your expectations. While companies periodically carry out performance reviews of workers, staffing agencies are hardly subjected to the same kind of rigorous assessment. This can be a mistake on the part of the client, as poor performance of your temporary staffing agency can have a fallout on your bottom line.

Companies must keep a firm eye on the performance of their temping agencies to ensure they are meeting the expectations that have been set for them. Here are five important KPIs to help you gauge the performance of your temping agency and ensure they are contributing adequately to the growth and success of your business.

1. Fill Rate

The percentage of positions a temping agency fills out of the total job orders they receive is termed ‘fill rate’. This percentage should ideally remain high. It demonstrates that the submittals they make are resulting in hires, making collaboration profitable for the company. A low fill rate, on the other hand, is a sign that there are issues with submittals. It shows the agency has problems in its procedures, precluding successful placements. If your staffing partner is demonstrating a low fill rate, it may be time to speak to them and find out what is wrong.

2. Time to Fill

This metric refers to the time it takes to fill a certain position. It covers the duration between when the need for a new employee is felt, and their joining date. Time to fill is suggestive of the robustness of an agency’s talent pipeline. A good time to fill metric indicates that the agency is able to produce good candidates at a short notice, making the association profitable for the client.

3. Quality of Hire

Although it deals with the performance of the employee and not the agency as a whole, quality of hire is a key metric by which you can gain insight into the performance of the temping agency. It is important because it directly impacts your business. After all, the performance of your business is directly proportional to the quality of your employees, including temporary hires.

While considering candidates for a position, the temping agency must ensure they not only possess the requisite skills, but that they are a good cultural fit for your organisation. Candidates with an amiable personality and the ability to thrive under pressure are more likely to do well on the job and the thrust must be on locating such candidates.

4. Conversions

Conversion rate refers to the number of temporary candidates who have been hired permanently by the client. If quality of hire was applicable to the candidate, and not the agency as a whole, conversion rates relate to the agency and not individual candidates. It provides a unique perspective on the performance of the staffing partner.

A high conversion rate demonstrates the agency’s ability to supply quality candidates to its clients who are good enough to become permanent employees. It is evidence of robustness of all aspects of the selection process including sourcing, screening, and submittals.

5. Compliance Audit Results

It tells you whether the temping agency is compliant with all internal external rules and regulations. Anything less than 100% compliance should be a cause for worry, as it could spell trouble for both the agency and the client.

Compliance includes several elements like proper background screening, signing and collection of letters and contracts, compliance with government rules and regulations, and so on. Temping agencies are generally on the ball when it comes to government compliance as they track the changes closely. But changes in systems and procedures on the part of the client must be communicated clearly by you to enable them to take necessary action.

Performance Measurement is Vital

Applying the right metrics to measure the efficiency of your temp agency is vital as poor performance can lead to wrong recruitments, cost overruns etc. leading to preventable losses. If choosing the right temp agency is important for the running of a successful temping programme, keeping track of the performance of the temping agency on a continuous basis is even more so.

The above-mentioned metrics can act as a guide for what you should focus on, to assess and evaluate the performance of your staffing partner. You might have to revisit some of these metrics over time, in keeping with evolving strategy and requirements.

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