As your contingent workforce grows, it is important to consider the quality of your program when making decisions about it. Quality can be a difficult concept to define and measure, but there are some key indicators that you should consider to ensure the success of your contingent workforce management program.
1. Time to fill
Time to fill is an important metric for measuring the success of contingent workforce programs. It measures the amount of time it takes to fill a contingent worker position and can be a helpful indicator of your program’s effectiveness. A high time to fill can indicate that there is a shortage of qualified candidates for the roles you are trying to fill, or that your talent procurement process is ineffective.
A lengthy time to fill could be due to a number of factors, such as a lack of awareness of your open positions or competition from other companies. If you are struggling with a high time to fill, there are a few things you can do to improve the situation.
Make sure that you are advertising your positions on the right platforms and using creative recruitment strategies. You could opt for using a managed service provider to help you with finding and managing your contingent workforce. Consider offering incentives to attract top talent. Finally, work with your staffing partners to ensure that they are sending you the best possible candidates.
2. Attrition rate
Attrition occurs when contingent workers leave their positions and is typically measured as a percentage of the total workforce. A high attrition rate can be costly for businesses, leading to a shortage of contingent workers and an increase in turnover costs. Attrition can also hurt morale, as it can create a feeling of instability within the workforce.
There are several factors that can contribute to high contingent worker turnover. Check that you are offering competitive wages, good working conditions, and that they are satisfied in their roles and in their relationship with their managers.
By tracking attrition rates, you can identify problems early and take steps to prevent them from becoming larger issues.
3. Quality of work
The quality of work produced by your contingent workforce is an important metric to measure for hiring managers. A high quality of work can indicate that your contingent workforce is well-trained and motivated, while a low quality of work can indicate that there are issues with your training process or that workers are not suited for the roles they were hired for.
If you find that the quality of work produced by your contingent talent is consistently low, it may be time to re-evaluate your current processes for recruitment, onboarding, and training to ensure you are attracting the highest quality talent.
4. Productivity
Productivity is another important metric for businesses with a contingent workforce. Measure the productivity of your contingent workforce program by tracking metrics such as time-to-market and project completion rates. Make sure you understand which processes and procedures are most effective in promoting a productive environment for your workers.
If you find that temporary workers are not as productive as they should be, it could be an indication that there needs to be improvements in your recruitment, onboarding, or training processes.
5. Cost per hire
Cost per hire is an important metric to track when hiring managers have a contingent workforce. Cost efficiency involves evaluating the total cost of hiring a contingent worker versus a full-time employee. Consider factors such as recruitment fees, onboarding costs, payroll processing fees, and taxes when measuring cost efficiency.
One of the main reasons businesses hire contingent talent is because it drives significant cost savings compared to hiring full-time staff. So if cost efficiency is low, you may need to rethink your recruitment strategy or negotiate better rates with vendors.
6. Risk and compliance
Service delays and failures of information systems, data and intellectual property vulnerability, imperfect compliance, and co-employment/misclassification are some of the risks that can result in losses or fines.
Assign responsibility for staying on top of new rules and recommend changes in procedures when necessary. Keep track of these things in order to remain compliant: classification of workers, work background checks, code of conduct, financial irregularities, and employer standards compliance.
7. Flexibility
Today’s businesses need to be able to adapt quickly to changes in their environment or customer needs. Evaluate how flexible your contingent workforce program is in terms of responding to sudden changes or needs within the organization.
Look at how quickly new talent is sourced and onboarded, and how flexible the terms of employment are.
Use reporting and analytics
A good contingent workforce program should provide visibility into the performance and productivity of your talent pool. Utilize data collection and reporting tools to measure key indicators such as time-to-fill, cost per hire, retention rate, etc., as well as longer-term trends over time.
Vendor management systems can also help you measure and monitor performance, providing valuable data to improve the quality of your program. Onsiter, for example, is a vendor management system that offers a comprehensive platform for managing your contingent workforce program. It allows you to gain visibility into key metrics such as cost savings and compliance levels.
Check out the free-to-use Onsiter VMS here.
Final thoughts
When measuring the quality of your contingent workforce program, there is no one-size-fits-all solution. The key is to identify the most important metrics to you, which will give you insight into the health of your program. By tracking these metrics, you will be able to identify problems and take steps to address them, ensuring a successful contingent workforce program.
