For any growing business, data is king. This data can be anything from customer polls to how many enquiries you had last month. With this information you can adapt to changes or push your company forward with confidence.

It’s especially true for recruitment agencies. No matter how big or small an agency is, you have a treasure trove of valuable information that can be used to improve efficiency and outpace competitors. But collecting data is one thing, knowing how to use it is another entirely.

Today we’re going to explain what data you should be tracking and how it can have a positive impact on growth.

 

The Importance of Data in Recruitment

Now, we understand that recruitment agencies are about recruitment, not data. That’s true. But you’re collecting data without even realising it, so you might as well use it!

Understanding what works and what doesn’t is crucial for any business. With some data collected from your clients and the candidates you provide for them, you can capitalize on why they chose you and ensure that the most talented temporary workers want their names in your system.

Many agencies simply look at gross margin and client satisfaction as indicators of business performance – but there are many other data points that can tell you so much more about your business.

Here are the top five recruitment metrics you should be monitoring:

 

How to Monitor Candidate Satisfaction

There’s been a great deal of focus within the industry in recent years on the ‘candidate experience’. Naturally you want them to enjoy their placements, ending their time with a company satisfied with their own performance and how they were welcomed into the fold. But how do you measure this?

The majority of recruiters will tell you the candidate experience they provide is good or excellent, yet a recent Career Builders study found only 47% of candidates felt communication was consistent throughout the hiring process.

The latest CRM systems make it easier than ever to track candidate engagement and satisfaction and even let you proactively make changes to your process to improve it.

Communication is key too. After a contract is ended, send a quick email to candidates to see if they were satisfied. It’s a small gesture but it reflects well on you and gives your workers an opportunity to have their voice heard.

 

Tracking Time-to-Fill

The number of days a job remains available and unfilled is a good measure of any recruiter’s speed and efficiency, and poor rates may indicate operational inefficiencies that are costing your agency money.

Temporary recruitment agencies should pride themselves on speed. Many candidates will be in a rush to fill a vacancy, even if it’s to cover one that was planned in advance such as maternity leave, retirements, or holidays. With integration and training often needed, time is of the essence. The faster you can provide clients with a shortlist of ideal candidates, the better.

Measuring time-to-fill can also be very useful in setting accurate expectations about the timeframe for a placement with clients who often cite poor communication with agencies as a bugbear. They’ll also see you as more open, transparent and reliable. Plus it’s information that can help you with budget planning and resource allocation.

 

Source of Hire and Location Data

One of the biggest advantages a temporary recruitment agency has is that they aren’t limited by location. You might have started with a high street office and local clients, but in 2025 you can organise placements and communicate with clients across the UK, and sometimes internationally.

Monitoring your most common sources of hire is one of the best insights to help you work more efficiently. Once you know where candidates are coming from, you can focus your efforts, such as your marketing and advertising spend, more accurately to reduce costs. It also helps you make more informed decisions on which recruitment programs and tools you should invest in, and you can decide whether to focus on specific locations or branch out.

 

Quality of hire

It may seem obvious, but quality of hire – placing the right candidate in the right position – is the key to true recruitment success. That’s why it’s one of the most important metrics for hiring managers and why monitoring it can give you a real advantage when talking to clients.

Measuring quality of hire revolves around three elements:

  • Retention – Are temporary workers keen to work with the same company multiple times, or stay for longer than was initially planned?
  • Time-to-Fill – How long did it take to fill the vacancy?
  • Hiring Satisfaction – Did the process go well from start to finish?

Your reputation is key to consistent growth. If clients and candidates aren’t satisfied, you need to act before they look elsewhere. Addressing issues sends the right message, and it ensures success in the future.

When you have access to the best temporary workers for your chosen industry, you’ll have a better success rate, and your clients will tell their peers about you, helping to boost growth exponentially.

 

Should you Track Cost per Hire?

Income and profit margins are the easiest data points to track, and they give you valuable insight as well. But the amount you’re spending is just as important.

Measuring this is as important to your business as it is to your client’s. By totalling up the amount you spend on every placement, you can measure the cost effectiveness and efficiency of your recruitment process.

This is something we always recommend to any new start-ups who are finding their footing in the recruitment industry. When you see that first wave of success, it’s tempting to invest as much money as possible into growth. However, you need to be careful not to overreach yourself, as recruitment has seasonal peaks that won’t be sustainable.

 

Tracking Key Metrics? Trust the Professionals

At Back Office Support Services we understand the importance of data. With our all-in-one service, we’ll provide you with valuable data via our regular reports, so you can use it to plan ahead and address any weaknesses in your business. This is on top of 100% Recruitment Funding, Payroll Support, accurate Invoicing, and Credit Control, which our clients get for one single fee.

When the admin is being handled by us, you’re free to focus on growing your recruitment agency, and the data we provide for you will make that easier than ever before.