How to Measure the Effectiveness of a Labor Supply Company
Many companies opt for labor supply companies to fulfill their recruitment needs as it is a popular solution. These companies have the capability to decrease hiring costs, simplify the hiring process, and enhance the new hiring quality. But, it’s important that you assess the effectiveness of your partnership with the labor supply company. This will help you verify if you are achieving the desired outcome, just like other business investments.
The metrics to measure the effectiveness of a labor supply company are:
Time to Fill (TTF)
One of the most critical partnership efficiency indicators is the Time to Fill (TTF). TTF is defined as the days taken to fill a job position from the time it is advertised on different platforms. If the TTF is low, it means your labor supply company is rapidly and effectively providing qualified candidates.
Cost per Hire (CPH)
When assessing the performance of a labor supply company, it is crucial to track the Cost per Hire (CPH) metric. CPH refers to the overall expense of filling a job vacancy, which includes advertising, recruitment fees, and other expenses, divided by the number of hires made. A reduced CPH signifies that the partnership with the labor supply company is allowing the organization to save recruitment expenses.
Quality of Hire (QoH)
As the name suggests, the Quality of Hire (QoH) determines the ability of a labor supply company to find and place the right candidates for your business. A few factors considered in this metric are retention rates, job performance and productivity. If you find that the QoH score is high, it means the labor supply company is providing high-quality candidates.
Candidate satisfaction
It is crucial to monitor Candidate satisfaction when evaluating the performance of a labor supply company since it reflects how well the company represents the business to potential candidates. A favorable candidate experience can lead to higher retention rates and an improved employer brand.
Time to Productivity
The duration taken by a new hire to become fully productive in their role is measured by Time to Productivity metric. If this metric is shorter, it implies that the labor supply company is finding suitable candidates who are a good match for the role and the business, thus reducing the time taken for them to become fully integrated into their new position.
Is tracking these metrics enough?
No. To improve your partnership with a labor supply company in Abu Dhabi and get better results, you should use the metrics.
Things you should do:
- Collaborate with the labor supply company to identify areas of enhancement based on the metrics obtained.
- Utilize these metrics to establish standards and objectives for the partnership.
- Consistently evaluate the metrics and modify the approach as required.
- Collaborate with the labor supply company by sharing the metrics to enhance and make progress.
Evaluating the success of your partnership with a labor supply company is crucial to ascertain that it is yielding the desired outcomes. Analyzing these metrics can assist in assessing the efficiency of the partnership and making modifications to refine the recruitment strategy. Remember to establish objectives using these metrics, work in conjunction with the labor supply company, and consistently improve the hiring process.