As skills shortages become a more substantial global issue, this leaves a great deal of businesses worried about how to fill the gaps in their workforce in an efficient manner. It sounds like a simple problem to fix, but it gets more complicated than that: even if you could find the workers with the right skills, you need to consider how quickly you can get them into action and at what cost. Many businesses simply don't have the time to wait, and when they do, production and operations can suffer. Luckily, there is a more effective solution.
What Are Fill Ratios?
Fill ratios are a way of measuring the new positions your business has created and the number of jobs you're hoping to fill. In a large part due to the uncertain economy, it's become considerably more important to consider – if your company has a low fill ratio that means you aren't able to satisfy your hiring needs.
It might seem like a cut and dry metric, but as mentioned above – it comes with complications that can adversely affect your business in a lot of ways. Consider time-to-fill rates, which seem to be climbing as the market shifts. This means it will take longer for you to satisfy your skill needs, on top of the delay already being suffered due to skills shortages. Heated competition in the job market only drags the process out further, meaning some jobs you might think should be filled immediately may take weeks – or even months. This is one of the biggest points of stress in the industry, and with good reason. An empty position can cost money, hold up projects which wastes time and ties up resources that could otherwise be put to better use. Luckily, there's help.
As one of the many closely watched metrics in the business world, fill ratios are becoming a term we hear more and more often, especially in our industry. In fact, it's one of the most popular reasons why so many businesses begin evaluating contingent workforce managers in the first place. Along side myriad other reasons, fill ratios are one of the reasons so many businesses are scrambling to hire contingent workers. In an uncertain market, contingent workers come with all kinds of benefits. They can save you a great deal of time, as they can typically fill positions much quicker than traditional workers can. With a relatively quick on-boarding process, they can get started working on critical projects and in critical areas much sooner, which cuts down on resources and money spent on waiting to get started. Last, but not least, you can stop worrying about how to hire skilled full-time workers in a job market where none can be found, and find skilled people to work for you on a contractual basis until the market shifts again.
Naturally, contingent workers come with their own set of complications, though many companies see this as a fair compromise when considered. When you factor in laws, regulations, contracts and terms, it can seem a bit overwhelming – that's why so many have turned to contingent workforce management as a solution to increase their fill ratios. What comes with workforce management is expertise, people well familiar navigating the waters of the contingent workforce. This means an understanding of current labor markets that rivals the best of them, a sound approach to improving fill ratios, and the drive to ensure your company receives the tailored assistance it needs.
Despite a struggling market, a solid strategy for the improvement of fill ratios could turn everything around, save you time and money and ensure any disruptions to your business are as minimal as possible.