A common question asked by Contingent Workforce leaders is "How do I measure the success of my contingent workforce program?" In this article we look at the four key performance metrics (KPI's) that can gage the success of your contingent workforce program and how a VMS can help bring visibility to them.
Navigating the realm of non-employee workforce management demands the implementation of a vendor management system (VMS). To attain comprehensive insight into program performance, automating contingent workforce management processes and centralizing staffing agencies through a VMS is imperative.
Contingent Workforce Management: Key Performance Metrics (KPI's)
Delving into the metrics that gauge the success of a contingent workforce management program, here are four key business performance metrics performance pivotal for evaluation:
4 Key Performance Metrics (KPIs)
#1 - Time-to-fill
A key metric for assessing staffing vendors and internal processes is time-to-fill. This metric scrutinizes the calendar days (or hours for high volume) it takes to fill a position, from the initiation of a temporary position posting to its successful fulfillment or resource assignment commencement. Evaluating vendors on this metric is not only instrumental in their improvement but also crucial in assessing the end-to-end process efficiency, ensuring timely placement of skilled workers.
#2 - Turnover
While turnover is anticipated in a temporary workforce, excessively high turnover signifies potential issues. It could indicate subpar worker experiences, misalignment in staffing agency placements, non-competitive rates, or delayed assignment renewals. Reducing turnover in a contingent workforce program is vital for optimizing time, effort, and the cost associated with attracting and onboarding new talent. Being able to pinpoint specific job categories, business units or geographies, to name a few, with high turnover, helps organization address root causes and improve this metric.
#3 - Time-to-submit
Distinguishing itself from time-to-fill, time-to-submit measures the duration it takes a staffing agency to submit candidates. This metric unveils insights into the efficiency of the contingent workforce management program, highlighting bottlenecks between submission and the fill/start date. Identifying factors such as resume screening timeframes, managerial delays, interview processes, and backcheck inefficiencies is crucial for streamlining the overall process.
#4 - Fill rate
The fill rate, comparing received temporary position orders to the number of job orders filled monthly by staffing agencies, serves as a pivotal metric. Low fill rates may signal inadequate processes, underperforming agencies, or rate card issues. Gaining clear visibility into fill rates empowers organizations to rectify these issues promptly.
How a VMS Enhances Visibility of your KPI's
A VMS will allows true data capture and visibility into your critical KPI’s. By consolidating all staffing agencies into a unified hub, a VMS ensures efficient monitoring, measurement, and management of vendor performance. The heightened visibility offered by a vendor management system enables businesses to meticulously monitor and track vendor performance, optimizing resource utilization and achieving workforce targets concurrently.
Streamlining processes by automating, centralizing, and consolidating all aspects of your contingent workforce program - a VMS will give you more visibility into your workforce and KPI’s and enables companies to make fact-based, strategic decisions to address problems.
Interested in learning more about Vendor Management Systems?
Whether you are looking for a new VMS Solution, or just getting started, we are here to help. See how easy Conexis is to use by taking a quick 2 minute Self-Guided Tour. Contact Us for a Free No-Obligation Consultation to discuss your workforce challenges (and get immediate actionable insights) or Book a Personal Demo Today!
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