The myths about recruitment performance management and KPIs

*A special guest post by Angela Cripps from Connemara UK

Got a great team, but believe they could be doing so much more?

Got an individual that's just not pulling their weight and is always underperforming, when you know that they’re very capable?

It’s usually at this time that managers and team leaders apply the term ‘Performance Management’. In most companies it’s seen as a negative situation and is something that you do ‘to someone’ when they’re not performing.

Performance management is actually a system that gives every individual the opportunity to be the best that they can be.

A Melcrum study showed that over 60% of an individuals performance is influenced by the way that their manager communicates with them. Remember your staff will do what you ‘inspect’, not what you ‘expect’ – but the way the line manager communicates this inspection, can make it a positive or negative experience. So it’s not just about following up on activities and results when people aren’t hitting their targets, performance management needs to be a key element of your strategy for every day/week/month/year.

1-1s are a key element of performance management.

It’s not for the manager to do all of the work though. The individual being coached should have prepped for the 1-1 meeting with a review of the last week’s achievements and then 2/3 objectives to achieve for the following week.

These objectives could be a specific activity target or KPI that they’re struggling to achieve, a personal quality that they want to work on or a longer-term goal that needs some development. It’s up to the individual to work out what needs to be the focus and for the manager to facilitate the actions. But how do they work out what needs to be focused on?

Key Performance Indicators

A KPI is a measurable value that demonstrates how effectively & efficiently you are achieving your objectives/goals and they help you to evaluate your likely success at reaching those goals.

Making 50 calls per day is not a KPI. Doing 10 client meetings a month is not a KPI. They are a measure of activity levels, but as the name suggests – a KPI is an indicator of your key performance i.e. are you working efficiently and effectively?

If gaining client meetings is a key objective for your month or quarter, then monitoring how many calls it takes you to confirm a meeting is a suitable KPI to monitor. 50 calls to 5 meeting booked is a ratio of 10:1 (just divide the first number by the second) and that’s the KPI to monitor. The idea is that when monitoring it over a period of time, the ratio gets smaller and therefore you’re getting more effective at asking for meetings. (N.b. a lower KPI number is not always a good indicator though - see below).

Follow up KPIs should then be the ratio of meetings booked:meetings attended to make sure that the clients also saw the benefit of a meeting and it actually went ahead and then, client meetings:business gained, because the KPI is monitoring your effectiveness, so did you actually get business out of it? A good indicator after 6 months, is that 80% of the meetings have provided a business opportunity to work with that client - or seen as a ratio of 1.25:1.

This isn’t where it stops though!

The whole point of KPIs is to read them alongside others.

An interview:job ratio of 3:1 is an industry standard for contingency recruitment, so a ratio of 1.5:1 could be considered great. If the interview:placement ratio is 3:1, then this indicates that you’re filling 50% of your jobs, which is also not a bad target to aim for if you haven’t got exclusivity with your clients.

But what if the interview:placement ratio is 7.5:1? You’re only filling 20% of your jobs now as it takes 7.5 interviews to get a placement and each job has 1.5 interviews allocated to it. Therefore, 7.5 divided by 1.5 = 5. You’re only filling 1 in 5 jobs (20% fill rate). Immediately I would look at how many interviews the client is having for each job and this tells me that 1.5 is not enough choice and the client is potentially going elsewhere to get another candidate or two.

So, in summary, KPIs are there for you to monitor your business, be able to analyse what’s working and what’s not and then plan accordingly – whether that leads to training or coaching to improve the competency, or motivation to achieve the activity levels.

Performance management helps with this every day, but remember, you don’t have to have a manager to do this – you can achieve it all on your own if you need to, but wouldn’t it be nice to know that the support is there too?

More about Angela

Company: Connemara UK Ltd



Phone:+44 (0)7789 966209

Skype: angelacripps

Follow Angela on Twitter here.


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