Missing your recruitment agency’s revenue forecast is one of the most disastrous things that can happen.
Doing an early revenue projection can help you make smarter choices and better decisions, and do accurate quarterly budgeting.
If you keep track of your recruitment business development activities, you’re surely going to end up creating a pipeline of candidates and clients that is flowing smoothly with time.
If not, you’ve got a problem!
Here, we’ve simplified how you can predict your revenue dips using a powerful ATS + CRM software.
Why is Revenue Prediction Important for Recruitment Agencies?
Revenue prediction will help your recruitment agency avoid or mitigate any form of potential issues when there’s still time to avoid them.
Imagine concluding that the number of candidates being interviewed by your clients has dropped considerably or you’re working on jobs that are not bringing you proper returns at the end of the quarter. How disastrous is that?
Here are a few reasons why you should include this as a part of your business development strategy—
- It’ll help you in resource management, hiring, and budgeting. For instance, if your forecast talks about an increase in revenue by 20%, to keep up with the number of positions you’re filling, you’ll need to hire more recruiters for your team.
- It’s (no doubt!) a powerful motivational tool. Your prediction doesn’t have to be perfect. The results will always be slightly different than what you’re predicting. However, widely inaccurate results are problematic.
- Revenue prediction will also assist you in goal-setting and help you understand the kind of clients you want to work with.
How can Recruit CRM Help in Predicting Revenues?
It’s pretty simple!
In fact, we have got a number of ways by which you can do this projection using our software.
The easiest way to predict a dip in your revenue is by tracking how many candidates are getting interviewed by your clients. If this decreases, you’ve got an issue.
The simplest way to do this is by going to our reporting suite.
Under Candidate Lifecycle Report, you can select your hiring stage, choose a time frame and generate this report. If there’s a decreasing trend, inform your team members immediately so that they can take stock of the situation.
Once you note down these numbers, ensure you’re looking into the type of jobs that are providing you returns as well.
Under Deals Won/Lost Report, recruiters can look into the number of deals they’ve closed vs the number of deals they’ve lost.
If the number of deals you’ve lost keeps increasing with time, you might want to look into the kind of jobs you’re working on.
Focus on your expertise. If it’s retained search that is giving you the best results, do more of it.
On the other hand, if you come across a client who’s not working for you, fire them. Even if it ends up being one of your biggest clients, you can easily fill this hole in revenue by asking your recruiters to give time and service to clients who’ll give you more jobs to fill.
Under Job Statistics Report, you can select the KPIs– interview and placed and generate a report on how many interviews your client has conducted vs the candidates you’ve actually placed.
Our Deals by Teammates/Team report showcases deals by value and deals by weighted value. This will provide you insight into how many deals you have in each stage of your pipeline.
Another interesting way to project your revenue would be by looking into the Fill Rate under the Job Statistics Report itself.
If the ratio shows a decreasing trend with time, you might want to take a look into your candidate pipeline quality and also re-strategize
your business development plan.
Learn how Recruit CRM can help you do this projection in detail. Feel free to sign up for a quick demo and our executives will guide you through our recruitment software.