Are you ready to improve the ROI your organization receives from its contingent workforce? If so, you’ve probably read about how a highly-strategic contingent workforce management program will give you the visibility you need into your non-employee workforce and the staffing agencies you use to source those workers.
The key to any successful contingent workforce management program is workforce data and KPIs, which give you visibility into how your program is performing and where you can make improvements to reduce costs and improve workforce quality.
There’s an old maxim in the business world, “you can’t manage what you can’t measure”, and that is particularly true when it comes to contingent workforce management.
That’s why, in this blog, we’ve created a list of the top four contingent workforce management success factors. By measuring and evaluating the below KPIs, your business will be able to significantly improve the ROI you realize from your contingent workforce.
Utilizing the contingent workforce is a great way to save money that can be added to your company’s bottom line, but it can also have the opposite effect when you don’t have complete visibility into your program. Without an effective contingent workforce management program in place, businesses typically suffer from rogue spend that goes unnoticed.
That’s why, with any effective contingent workforce program, it's important to measure and evaluate the cost of the entire program. This should include everything from how much you are paying your staffing agencies, the amount you are paying contingent workers and the price of program tools such as a Vendor Management System.
2 - Program efficiencyThe efficiency of your contingent workforce management program comes down to a combination of the speed, accuracy and success rates of the process that make up your program. This can be difficult to measure since efficiency is typically a “soft saving”, but there are a few KPIs you can use to measure the efficiency of your program. These include:
Time to fill - This is a measurement that looks at the number of calendar days a staffing agency takes to fill an open position, showing how efficient your talent acquisition processes are.
Turnover - This is the number of contingent workers that leave your organization before their contract is up, which gives insight into how efficient your workforce engagement processes are.
Fill rate - This is the ratio of contingent position orders received by your staffing agencies, compared with the actual number of job orders filled. This gives you an idea into how efficient your vendors are in fulfilling your workforce requirements.
These are just a few of the metrics that will give you some insight into program efficiency. By using KPIs such as the above you’ll be able to determine the efficiency of your entire program, from your staffing agencies to your contingent workers.
3 - Workforce qualityOne of the primary reasons that organizations utilize the contingent workforce is to access hot skills and expertise that they otherwise wouldn’t be able to find, or afford, when hiring an employee. An effective contingent workforce management program will give you the visibility you need into what contingent workers you are hiring and how they help with your overall workforce objectives.
The better visibility you have into your contingent workforce program, the more you’ll be able to improve workforce quality by ensuring that your staffing agencies are fulfilling your needs.
4 - Contingent workforce riskLast, but not least, we have contingent workforce risk. Mitigating risk is one of the most important contingent workforce management success factors in any program, ensuring you don’t needlessly waste money.
There are a number of risks associated with the contingent workforce, a successful contingent workforce management program will help you avoid:
Do you need help managing your contingent workforce?
We get it, contingent workforce management is incredibly complex, time-consuming and sometimes even frustrating. When not implemented correctly, it can lead to a complete lack of visibility into your workforce and huge amounts of wasted time and money.
Typically we find that for organizations that don’t have the time, resources and energy to spend planning, building and implementing a contingent workforce, it’s generally better to outsource the program to an expert.
That’s why here at Contrax we’ve developed a range of programs to help organizations better manage their contingent workforce programs. We take away the burden and complexities of talent acquisition, contingent workforce management and staffing agency management, so that our clients can focus on revenue-generating projects.
Interested in learning more about how we can help you save money and improve your workforce quality, all through effective contingent workforce management? Book a meeting with our team of specialists today.
