User Review( votes)
The most fundamental question answered by profitability is simple: how much money is my business actually making? However, financial data becomes a much more powerful tool when it lives in the same system as your ATS and CRM data and can be calculated at the level of each individual contract or placement. When financial data is that granular, you can roll it up to easily answer a new set of important questions: How profitable is each line of my business? How does my margin differ by candidate source? What is my average profit per interview for a given team or segment?
It can be powerful to understand how different costs impact profitability and use this knowledge to inform strategic decisions; relevant costs include: direct labor costs, VMS fees, rebates and discounts, background checks and drug screens, overhead costs, and more. When you truly understand the successes (and failures) of each segment and activity of your business, you can then prioritize strategies and set goals to meaningfully improve growth and profitability.