Leads vs. Placement - Conversion Statistics - What's the reality? Can I get your feedback?

You run your ads, spend hours networking, solicit for referrals, post in forums as an industry expert, etc., etc., etc. .... all with the intent of attracting talent to you and your open positions.

What I'm trying to determine is: Out of the grand total of every reply, phone call, fax, instant message, etc., what percentage do you actually convert to a placement?

It would also be very helpful to hear your feedback regarding what the reality is regarding the unused job seekers you've touched. What do you do with them once you've exhausted all of your auxiliary options (ie; splits, StaffingForce, etc.) ??

One would assume that they go into your database... of course. So, I guess another question is; How religiously do you mine through your database to fill an open position and how often does that convert to a successful placement?

Do you see what I'm getting at and searching for? Your honest, detailed feedback would be GREATLY appreciated. I would love to see hundreds of opinions on this as it would help my research.

Thanks, in advance, to all that reply.

Respectfully,
Jim - medXcentral
www.medXcentral.com
www.GoHCRO.com

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Permalink Reply by Jim Canto on May 19, 2008 at 5:44pm

Wow... no replies yet? I thought this would be a stimulating topic. Anyone?

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Permalink Reply by Jim Canto on May 20, 2008 at 12:38am

Hmmm... now that I fixed the title of my post, maybe I can get a few hundred replies to this? Yes, I'm optimistic. This is an important topic for me. Thanks in advance. - Jim

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Permalink Reply by Jim Canto on May 20, 2008 at 7:44am

Thanks, Mike. Technology does make it easier to increase the conversion ratio. Quality ATS' help.... and there are some great conversations on RB regarding software.

But, what is the real number, from your perspective, of the conversion ratio? Leads to placement.... listed as a percentage. Care to throw another penny in the "kitty"?

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Permalink Reply by pam claughton on May 20, 2008 at 8:14am

Jim,
I'm guessing that you don't have much of a discussion on this question because the way it's phrased, it seems like you might have a service you are trying to promote, something like a staffingforce maybe? That's what it seems like you're getting at, offering a way to do something with candidates that we don't place? To answer your question, I have no clue on my ratios, I always mean to track them, but am too busy to do it. I do keep a great database though, and it's the first place I go for any search, and usually results either in immediate candidates, or referrals to candidates.

Pam

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Permalink Reply by Jim Canto on May 20, 2008 at 11:04am

Pam... you're spot on with respect to me and the intent of my question. I do have something to promote (though not necessarily here at RecruitingBlogs) .... similar to StaffingForce in some ways... but different in many. Similarly, it is based upon unused candidates.

I'm not sure how to rephrase the question. I tried not to be solicitous (not an easy task for a salesman speaking to salespeople... LOL). I do truly seek the opinion of the group.

In general terms, agencies often tell me that they are converting less than 5% of all leads they touch. Some less. Some more.... depending on their marketing efforts.

From my personal experience, I would say it is less than 5%. The agencies I worked for invested large amounts of money bringing in new candidates, kept great databases and pushed the recruiters to mine through them. However, the reality was that we were so busy with new candidates it was difficult to spend time mining our local database, leaving a tremendous amount of "waste". I was a travel nurse recruiter which I understand is different in many ways. And, healthcare is incredibly "hot" these days.

I'm trying to gain a broader perspective by leveraging the collective minds here on RecruitingBlogs. That is why I've started the discussion.

Pam, thanks for your honesty. I appreciate that you are "too busy" and "have no clue" on your exact ratios. I did not track hard numbers either. Who has the time? But, even deploying the exact science of guesstimating... I believe the conversion number will be low when the votes/opinions are counted. I know that is obvious... but, exactly how low is not. I'm counting on the honesty of the group to help define the reality in our industry. I know it's not a comfortable statistic to look at.

I'd appreciate any feedback regarding how to rephrase the question so as to stimulate the discussion.

Kindly,
Jim - medXcentral

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Permalink Reply by Jim Canto on May 20, 2008 at 11:21am

Mike.. thanks for taking time to clarify. Please see my reply to Pam below as it will help clarify my intent.

To answer your question; "What percentage are you looking for?", I'd answer as follows:

Say you average 100 open reqs to be filled and your combined marketing efforts generate 1000 new replies (total per month) inquiring about your open positions. Any new reply of any kind must be counted. All inquiries are the equivalent of foot traffic to a retail store. You "paid" to get their attention. The primary question is; What percentage get converted to placements? The Secondary question is; What happens to them when you don't place them?

Thanks again for participating in this discussion.

- Jim