The keys to successfully managing contingent workforce performance will require KPIs that include cost, quality, efficiency, customer feedback and risk.<\/p>\n\n\n\n
You can’t manage what you don’t measure – says the old business axiom, and most successful organizations. As you examine the performance of your contingent workforce, it\u2019s important to know exactly what it is you should be measuring and the factors that drive a successful program.<\/p>\n\n\n\n
It is very common for organizations to make the mistake of evaluating their contingent workforce program based solely on cost savings and speed, but in today\u2019s era of talent scarcity those metrics only tell part of the story.<\/p>\n\n\n\n
It’s critical to be aware of what, exactly, it is you should measure and the factors that drive a successful program. While performance indicators surrounding cost savings and time to fill are common metrics most companies are measuring, contingent workforce management is much more complex than that.<\/p>\n\n\n\n
There are many different Key Performance Indicators (KPIs) companies can use to track and measure success; however, it’s imperative that the ones you choose directly reflect the goals your organization has set for its contingent worker program.<\/p>\n\n\n\n
Regardless of whether you’re operating your contingent workforce internally or your organization has engaged a managed services provider (MSP) to implement a new program, here is a list of KPIs you should be thinking about regarding when it comes to contingent workers and contingent workforce management:<\/p>\n\n\n\n
Saving on costs is a consistent factor in contingent workforce management, with organizations ranking contingent workforce costs as a top five spend category. However, cost management does’t just include bill rate and governance — but the total costs of the overall program. This means tracking things such as:<\/p>\n\n\n\n
\u2022 Competitive candidate pay rates
\u2022 Percentage of rate-card compliant workers vs. non-compliant workers
\u2022 Talent acquisition and turnover
\u2022 Program tools and resources
\u2022 Software
\u2022 Data management and analysis
\u2022 Office resources and supplies
\u2022 Uncontained risks\/non-compliance fines and penalties
\u2022 Vendor rates
\u2022 Overtime costs
\u2022 Conversion fees
\u2022 Spend forecast<\/p>\n\n\n\n
Inconsistencies in these areas lead to a lack of visibility that could be costing a business thousands if not millions in avoidable contingent spend.<\/p>\n\n\n\n
Fifty-three per cent of organizations list quality as a top factor in their contract workforce program, and 78 per cent select it as one of their top three considerations. Typically, these objectives can be broken down and measured in three categories:<\/p>\n\n\n\n
i. Program operations
ii. Talent services
iii. Vendor services<\/p>\n\n\n\n
Acquiring and managing contingent talent can be a time consuming and very rewarding process. Even for organizations with a solid program; it\u2019s good to track things such as:<\/p>\n\n\n\n
Job descriptions and submission rates
<\/b>\u2022 Number of applicants
\u2022 Placed talent vs. rejected candidates
\u2022 Number of times a job description has been re-written
\u2022 Changes made to skills and qualifications sections<\/p>\n\n\n\n
Supervisor or manager performance
<\/b>\u2022 Time to fill
\u2022 Retention
\u2022 Which manager is the best at spotting and developing talent and which ones fall short?
\u2022 Manager evaluation<\/p>\n\n\n\nii. Talent services<\/b><\/h4>\n\n\n\n
Thirty-eight per cent of organizations list service quality as one of their top three considerations. Yet many still aren\u2019t measuring it. Talent quality can be measured by tracking things like:<\/p>\n\n\n\n
\u2022 Manager satisfaction
\u2022 Percentage of completed assignments on time and on budget
\u2022 Early contract terminations
\u2022 Contract extensions
\u2022 Worker evaluations
\u2022 Diversity
\u2022 Would you re-hire and use this worker or recommend for another role<\/p>\n\n\n\n
Whether your organization has been operating a contingent worker program for years or you\u2019ve recently been engaged a Managed Service Provider (MSP), it\u2019s important to track the factors that drive a successful program. You should be tracking things like: <\/p>\n\n\n\n
\u2022 Requisition inquiries
\u2022 Responsiveness
\u2022 Fill rate
\u2022 Time to hire
\u2022 Resume to job opening and resume to interview rate
\u2022 Talent
\u2022 Worker dis-engagement
\u2022 Percentage of candidates that complete pre-assignment documentation, background checks, drug screenings and other required documentation
\u2022 Rate card adherence
\u2022 Results of audits<\/p>\n\n\n\n
Measuring the efficiency of your contingent worker program involves tracking the speed, accuracy and success rates of various processes and establishing accountability among the parties responsible. Typically, these parties include: hiring managers, vendors and talent.<\/p>\n\n\n\n
Hiring managers
<\/b>\u2022 Time to fill
\u2022 Time to respond or approve
\u2022 Worker evaluations: Are they being completed? How often and how long do they take?
\u2022 Worker onboarding and offboarding<\/p>\n\n\n\n
Vendors
<\/b>\u2022 Candidate quality and speed of submittal
\u2022 Accuracy of candidate qualifications
\u2022 Candidate engagement
\u2022 Onboarding and offboarding
\u2022 Compliance
\u2022 Invoicing and payment
\u2022 Financial\/transaction reporting<\/p>\n\n\n\n
Talent
<\/b>\u2022 Early contract terminations
\u2022 Contract extensions
\u2022 Percentage of completed assignments on time and on budget
\u2022 Manager satisfaction rates<\/p>\n\n\n\n4. Risk<\/b><\/h3>\n\n\n\n
Identifying and mitigating areas of risk in your contingent worker program is critical to avoiding the unforgiving fines and penalties of non-compliance. To keep compliant, it\u2019s important to track things like:<\/p>\n\n\n\n
\u2022 Worker misclassification
\u2022 Criminal behavior
\u2022 Counterparty risk
\u2022 Employer standards compliance
\u2022 Code of Conduct
\u2022 Financial irregularities
\u2022 Co-employment<\/p>\n\n\n\n
In today\u2019s talent market, it’s important to measure not only hiring manager satisfaction but also supplier satisfaction and perhaps most importantly, candidate satisfaction to ensure a quality contingent workforce program. Sending quarterly surveys to measure your NPS score will also lend to your organization’s continuous improvements efforts.<\/p>\n\n\n\n
To improve outcomes in contingent workforce programs, organizations must go beyond cost\u2014focusing on planning, worker quality, and key metrics like job orders filled, time to fill measures, and client feedback. Leading staffing agencies help reduce high turnover by providing contractors with specialized skills and complete background checks.<\/p>\n\n\n\n
Skilled workers increase productivity, while service level agreements support risk management and monitoring. As workforce trends evolve, determining which positions deliver the most benefits to your team is essential.<\/p>\n\n\n\n
By performing consistently and aligning talent to business goals, you keep hiring efficiently and stakeholders satisfied.<\/p>\n\n\n\n
To gather this data, organizations can survey internal employees to gain an understanding of the organization\u2019s current state. Gartner Research suggests focusing on seven (7) key drivers:<\/p>\n\n\n\n
Depending on the local regulatory environment, organizations may also be able to conduct voluntary and anonymous surveys on the types of candidates applying to job postings. This is another great way to understand if the DEI objectives for the hiring process are working.<\/p>\n\n\n\n
To drive long term success in contingent labor, organizations must align key performance metrics with compliance management, cost efficiency, and performance expectations. Procom helps businesses reduce costs, save time, and fill job orders with high quality workers\u2014whether they\u2019re full time employees or temporary workers. From leveraging technology and direct sourcing solutions to streamlining your onboarding process and minimizing risk, our vendor management system ensures your staffing strategy is implemented correctly and meets specific needs. <\/p>\n\n\n\n