KPIs for Growth: Measuring Hiring and Onboarding

Employees are the engine that power your business success. But business owners often underestimate the cost of a new team member

So what are those costs? Roughly 30% of that person’s first-year salary. 

Make a bad hire, and those costs will skyrocket. 

74% of surveyed businesses have made the mistake of hiring the wrong person for the job. So if this is a misstep you’ve made, you’re not alone.

So don’t feel too down about it. Tomorrow’s another day and this is something we can fix so you never make the same mistake again.  

An airtight hiring and onboarding process is critical for your agency’s bottom line and will keep the wrong candidates out of your system. 

With the right hiring and onboarding KPIs, you’ll improve the quality of the hire while streamlining the hiring process. 

These KPIs will work for both in-person and remote hiring. Let’s break them down. 

How Putting Aces in Their Places Benefits Your Agency

Introverts make great front desk receptionists! No, no, they don’t. 

Bad hires can sap your team’s productivity and performance. They also risk legal fees for unlawful termination. 

You want to make sure you have the right person for a position. Otherwise, the costs of a bad hire will eat into your revenue stream. 

Here are just a few of the benefits hiring the right person for the job for your agency:

  • Decrease the time and expense of training
  • Improve employee morale
  • Increase retention rates
  • Make customers happy with better customer service

Using KPIs for onboarding and hiring will also reduce the costs of reviewing resumes, recruitment fees, and time spent interviewing. 

Time to Hire KPI

Recruiters and hiring managers, listen up: 

If you’re going to master any of these KPIs, make this one a top priority. 

How come? Because the time to hire KPI helps you:

  • Optimize your application process
  • Protect your company’s productivity, revenue, and brand image
  • Ensure that you’re interviewing only the top candidates

On average, and depending on the industry, time to hire can take anywhere from 14 to 63 days. 

Let’s think about this for a hot minute. You’ve got an exciting, well-paid position available that you want to fill asap. 

Your job ad is drool-worthy and laser-targeted to your ideal candidate. It’s being advertised freaking everywhere. 

So, who do you think is going to jump at the chance to apply and try to snag this top-notch position first?

Hint: it won’t be the forks when all you need is a knife. 

Your best candidates are going to apply early in the process. Take too long to hire and have a lengthy hiring process, and your best and brightest will drop out. 

What’s left? A pool of mediocre candidates that, if you hire, can hurt your brand image and productivity. Ugh. That’s some rain on your wedding day. 

If you notice a lot of candidates starting an application but not finishing, then you might need to tweak your application and hiring process. 

Time to Hire = Date of Hire – Date Candidate Enters the Pipeline

Quality of Hire KPI

Ensure that your new employees have A’s across their employee scorecard with the quality of hire KPI. 

To measure this KPI, you’ll need to go through your retention and performance data. 

You’ll also want to measure how your new hires fit in with the company. 

Are you experiencing new hires leaving within the first six months? Then you’re probably screening for the wrong traits. 

Also, this KPI can help you determine where you’ve found your best hires, like social media, job boards, or references.

(Performance + Productivity + Retention) / N = Quality of Hire

Measuring Time to Productivity

Time to productivity measures how long it takes for a new hire to meet performance level expectations. Setting a KPI here will help you uncover any cracks in your onboarding process. 

The exact KPI you set to measure time to productivity will vary across teams. But suffice it to say, it shouldn’t differ too much from one person to the next within a particular group. 

Keep These Marketing Agency Hiring and Onboarding Best Practices in Mind

Before you start measuring your KPIs for growth, take the following action steps:

  • Be consistent — Use the same onboarding process for each new hire. Consistency will make it easier to extract meaningful data from the hiring process. 
  • Be warm — During the hiring process, candidates are looking at your agency with a sharp eye, wondering if they’re making the right choice. Make candidates feel welcome during the onboarding process so they won’t feel unappreciated and bail. 
  • Think of it as a relationship — Think it’s done and over after hiring? Not so. Guide your new hires and develop them after the onboarding process is done. This will help them stay engaged and feel appreciated enough to stay with you for the long haul. 

Is the hiring process an exercise in frustration for you? 

Get some of your time back with our free Hiring Hacks Guide. And keep these hiring and onboarding KPIs in mind when you’re ready to add a new member to your team. 

Gimme!

This hiring hack can save you 20+ hours

Putting a job posting up on a job site like Indeed is like throwing a grenade on top of a mountain and waiting for it to explode.

If you’ve created the right posting, you’re about to get an avalanche of resumes (one posting on Indeed can easily generate over 100 applications).

Few business owners have any reliable way for sorting through them.

Maybe you’re one of those people who spends 15 minutes on every single one, throwing away days in the process.

Or maybe you only review a certain number of resumes, and ignore the rest, potentially passing over the best candidate.

Either ways, after just a few reviews all resumes start to look the same.

Then you start second-guessing yourself.

And then the overwhelm takes over.

There’s a much, much better way.

After hiring hundreds employees of my own, and helping hundreds of clients do the same, I’ve developed a streamlined process that helps you quickly review the resumes you receive, while maintaining high standards to make sure you get the right candidate.

The process involves sorting employees into different buckets as quickly as possible. The Yes’s, maybes, hell nos, and people that might be good for something else. Each resume should take 30 seconds to review.

There are 4 key points you want to look for when you’re sorting through resumes.

        1.  Basic standards

There are a few questions we want to ask before we move on to the content of the resume:

  1. Is the person real? Yes, you might get spam resumes
  2. Is this resume formatted with any degree of professionalism?
  3. Are they based in a suitable location for the job?

       2.  Dependability

Here we’re looking to see if they’ve kept down a job for a year or longer, or if they have any big gaps in their resume. Although this doesn’t tell the full story, if a resume is filled with 3 and 6 month jobs, that’s a big red flag. Another red flag is if there are gaps in employment of more than a few months. Sure they could explain these issues, but we don’t have time to get everyone’s story here.

        3.  Experience

Looking at their job titles, do they have experience doing what you’ll need them to do? When we do this scan, we aren’t looking for someone with a perfect experience match (although that would be nice). What we’re looking for are job positions that are related to what we’re asking them to do, or ones that require similar skill sets.

        4.  Specific requirements

Are there any deal breakers or standards they must meet? Now is when you look for them. Certificates, degrees, or anything else that they must have.

At first this may take a minute or two, but believe me, after looking through a few resumes, you’ll be a pro.

Having too many resumes to review is a good problem to have, but a problem nonetheless. Following this process is an easy way to save time and money, while increasing your chances of finding the perfect hire for your company.

The Real Cost Of A New Team Member

Hiring an employee is one hell of an experience for entrepreneurs.

So many emotions bundled up into one decision.

One of the biggest challenges is figuring out how much an employee is going to cost.

I’m sure the first time you hired, you significantly underestimated how much it was going to cost.

Everyone does.

In fact, I find that most business owners often underestimate costs by 25%.

I’m gonna be real – that’s unacceptable, but it’s not too late.

Today I’ve got a few tips on how to budget for hiring, plus a handy hiring cost calculator that will help you get an accurate idea of how much it will actually cost.

To get started, there are few questions you need to ask yourself.

Once those are answered, head on over to the ScaleTime Hiring Calculator to get a clear budget prepared.

Pitfall#1 – Hiring a full time employee when all you need is a VA or freelancer

A lot of business owners who feel overwhelmed look to hire someone full time, so that they can “really focus on what’s important.” The challenge is sometimes the amount of overwhelm you feel is not directly correlated to how much work you have. Offloading a few tasks to a VA or freelancer will often clear enough off your plate, or the plate of your employees, to put you back in the driver’s seat.

Pitfall#2 Hiring (an expensive) senior team member because you don’t want to handhold

I see this all the time. In some cases, a business owner wants to find a team member who has experience doing exactly what you need them to do. In other cases, an employee is begging you to hire someone more experienced to handle tasks they aren’t equipped for.

Either way, your goal is to get someone who can hit the ground running. You don’t want to have to spend time training someone, hand-holding them through every aspect of their job.

It makes complete sense, but for most biz owners, it doesn’t work out. And the reason is because they don’t have the proper systems, documents, or training in place to help a new hire get up to speed. Without them, you could hire a college intern for 1/10th the price, and they’d only be slightly less effective. Even the most qualified employees still need to learn the ins and outs of your business before they’re ready to hit the ground running. Implementing proper hiring systems, and then hiring junior employees is often much easier and effective (you can mold them to your business because they haven’t had time to develop too many bad habits yet).

Pitfall#3 Underestimating costs

A lot of my clients say they want to hire someone worth 30K or 50K a year, and then go out looking for that person. The thing they don’t think about is that salary is just one part of the equation. Many other costs go into hiring, including:

    • Your time spent searching for candidates
    • Onboarding costs
  • Tax and benefits

The good news is – if you can avoid the first two pitfalls on your own, I can help you avoid the third. My Hiring Calculator helps you quickly estimate the true cost of that new hire. While most biz owners stick their finger in the air and hope things work out, you’ll begin the process bright eyed and bushy tailed.

Access the calculator here

Try it out and let me know what you think. If you were planning on hiring, how good were your estimates on how much it would cost vs. what you found using this calculator?