KPI Recruitment - How to set?
Many new recruitment agencies that have started their own recruitment agencies are having the basic problem of setting a KPI for their recruitment consultants. There are concerns that whether the KPI set is either too high or set at a level that is too low.
When the KPI recruitment is set too high, the problem is that the recruitment consultants will feel very pressured and not able to hit the KPI, if they are not able to hit the KPI, then there will be possible that they are not able to receive any commissions and of course when money is on the line, it will affect their own performance and morale too.
When KPI recruitment is set too low, it will not be able to bring in good profit margins for the company and eventually the company overheads will be higher than the sales in total and that will be a possibility that company will face a financial crisis.
Let’s look at what is KPI recruitment– Key Performance Indicator
Key Performance Indicator is a set of numbers or target set for the salesperson, in this case, is the recruitment consultant where they will need to achieve in a specific period, usually within the calendar month itself.
KPI can be measured in the total sales generated, total resume send to clients, total interviews arranged with the clients or even the total number of new clients secured. The type of KPI will be fixed by the boss of the company or the General Manager of the company where it will be set and to be followed by the consulting team.
Most of the time, many companies will use the total sales of the recruitment consultant as their KPI, which is to say that in this case, they will set a multiplier to their salary earned per month and that will be their sales target or we called it the KPI.
For example, if the salary of the recruitment consultant is $3,000 gross monthly and if the company set the KPI as 4 times the salary, then the KPI will be $3,000 x 4 = $12,000. That will be the KPI every month.
Some recruitment companies will use a lower multiplier such as 3 times, 2.5 times or even 2 times the salary and if the recruitment consultants reached their KPI, then they will be entitled to additional allowances or commissions. Other companies will set the KPI based on a fixed figure such as $6,000 or $10,000 to make calculation easier.
There are no hard and fast rule to set what will be the KPI for the recruitment consultants, it will very much depend on the direction of the company, whether to squeeze the most dollar from the recruitment consultants or create a non-KPI environment where people will be free and easy to bring out more from the consultants.
Regardless of whether it is based on sales figures or other indicators as a KPI, what most important is that KPI is a basic benchmark for a company and the consultants. As such the level of KPI will need to be managed properly so that the company survival and consultant morale will be balanced.
Many new recruitment agencies that have started their own recruitment agencies are having the basic problem of setting a KPI for their recruitment consultants. There are concerns that whether the KPI set is either too high or set at a level that is too low.
When the KPI recruitment is set too high, the problem is that the recruitment consultants will feel very pressured and not able to hit the KPI, if they are not able to hit the KPI, then there will be possible that they are not able to receive any commissions and of course when money is on the line, it will affect their own performance and morale too.
When KPI recruitment is set too low, it will not be able to bring in good profit margins for the company and eventually the company overheads will be higher than the sales in total and that will be a possibility that company will face a financial crisis.
Let’s look at what is KPI recruitment– Key Performance Indicator
Key Performance Indicator is a set of numbers or target set for the salesperson, in this case, is the recruitment consultant where they will need to achieve in a specific period, usually within the calendar month itself.
KPI can be measured in the total sales generated, total resume send to clients, total interviews arranged with the clients or even the total number of new clients secured. The type of KPI will be fixed by the boss of the company or the General Manager of the company where it will be set and to be followed by the consulting team.
Most of the time, many companies will use the total sales of the recruitment consultant as their KPI, which is to say that in this case, they will set a multiplier to their salary earned per month and that will be their sales target or we called it the KPI.
For example, if the salary of the recruitment consultant is $3,000 gross monthly and if the company set the KPI as 4 times the salary, then the KPI will be $3,000 x 4 = $12,000. That will be the KPI every month.
Some recruitment companies will use a lower multiplier such as 3 times, 2.5 times or even 2 times the salary and if the recruitment consultants reached their KPI, then they will be entitled to additional allowances or commissions. Other companies will set the KPI based on a fixed figure such as $6,000 or $10,000 to make calculation easier.
There are no hard and fast rule to set what will be the KPI for the recruitment consultants, it will very much depend on the direction of the company, whether to squeeze the most dollar from the recruitment consultants or create a non-KPI environment where people will be free and easy to bring out more from the consultants.
Regardless of whether it is based on sales figures or other indicators as a KPI, what most important is that KPI is a basic benchmark for a company and the consultants. As such the level of KPI will need to be managed properly so that the company survival and consultant morale will be balanced.
Hiring a good HR consultants company proves beneficial in finding the new leading employees that can lead the company towards new direction.
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