If you are reading this blog then it’s likely that your considering a strategic partnership with a managed services provider (MSP), helping you to implement and manage the complex components of your company’s contingent workforce management program.
Whether this is true, or you are taking on the management of your non-permanent workers in-house, understanding how you will measure success is one of the most fundamental aspects of a well-functioning and effective contingent workforce.
While cost savings and access to top talent are metrics that your company will be well on top of, a contingent workforce management program is much more complex than that.
An MSP will help you understand these metrics. By knowing exactly what you are measuring when managing a contingent workforce program, your company will understand the factors that drive success.
To give your business an idea of what a successful program entails, HCMWorks has listed four of those key metrics here:
1 - Time-to-hire
Similar to the time-fill metric which measures the amount of time your company needs to fill a position, time-to-hire calculates how fast your company moves as soon as you’ve made contact with the right candidate to fill a position or work on a project.
By understanding this metric, your company will gain visibility into how quickly your contingent workforce program is delivering value.
Many prefer this to the time-to-fill calculation because, while time-to-fill represents the number of calendar days until your company fills a position from a specific start point, the metric doesn’t take into account whether a hire was a success or not. Time-to-hire only looks at the time after a top talent is initially found.
2 - Worker satisfaction
The gig economy, which is made up of freelancers, contractors and non-permanent workers, has empowered a huge number of skilled workers to turn to contingent work - giving them the ability to shop around for a company of their choice.
Not only do contingent workers need to impress you, but your business needs to impress them. That’s why, once a candidate has finished the project they were assigned to, it’s important for your business to understand how satisfied they were when working with your company.
Remember, the shortage in skilled workers means your business must make positive relationships with all workers, not just full-time employees. By ensuring your candidates are satisfied working with you and offering them extended value that encourages them to work with you on future projects, you’ll ensure your in a position to acquire talented workers on an ongoing basis.
3 - Fill rate
Fill rate - the ratio of contingent job orders received by suppliers against job orders filled each month - is a highly important metric when it comes to the talent attraction and engagement process.
If your contingent workforce management program has low fill rates then it could indicate poor supplier performance, rate card issues and a wide variety of other problems with your program.
4 - Supplier performance scorecard
If your contingent workforce management program has matured, you’ll soon find that it’s time to start evaluating your suppliers in more depth. A supplier performance scorecard can be used to rate the suppliers that you use and determine which are the strongest performers.
These scorecards will help you keep track of the actions your suppliers perform, including:
- Supply of qualified candidates.
- Filled roles/assignments.
- Response times.
- Quality of work completed.
- Adherence to program policies.
- Costs metrics - such as bill rate, markup etc.
- And much more.
How can HCMWorks help?
Unless you have a highly-experienced and expensive team within your company, the management of a contingent workforce is incredibly difficult due to its complex nature. That’s why a professional MSP, which specializes in contingent workers, will greatly benefit your business.
Here at HCMWorks, we are able to implement an effective contingent workforce management strategy that improves your access to talented workers, reduces costs, helps you save time, all while reducing the fragmented processes and inconsistent hiring techniques that many organizations fall victim to.
Are you looking for more information about outsourcing your contingent workforce management program to a highly-skilled MSP? Contact HCMWorks today to find out how we can help.