Businesses should not have to choose between driving contingent labor cost savings and preserving talent quality and time to fill. These 4 emergent strategies explain how companies can do both – and do them better.
SELF-SOURCED TALENT STRATEGY
By leveraging established brand awareness and innovative resource tracking software, hiring managers are empowered to self-source candidates when they need to fill openings quickly and cost effectively. This self-sourcing talent strategy avoids conflicts with staffing interests, and results in 4-8% recurring annual savings, as well as savings of 15-20% with every order because of significant markup rate reduction. With this additional control over the candidate pipeline, managers consistently rate self-sourced workers with higher quality scores than externally sourced workers.
REAL-TIME RATE INTELLIGENCE
The question of what a company should pay to attract top talent can result in a major missed cost-savings opportunity when the answer is off the mark. Real-time rate intelligence that factors in job-specific skills and location-based premiums has been shown to drive 3-9% savings per order, or 4-6% recurring annual savings. With rate ranges embedded within a sourcing platform like PRO’s Vendor Management Software, Wand, organizations achieve rate standardization and eliminate excessively expensive labor costs.
Understanding workplace behavior is key to diagnose hiring process inefficiencies so they can be treated accordingly through best practice training. From manager requests to bill rate negotiation, businesses can save 2-5% per order, and expect to see 1-4% annual savings by promoting cost-effective sourcing behaviors. Dashboards like Wand Discovery provide overtime visualizations to help track which departments and managers are most in need of additional cost-avoidance education, and the use of a VMS to track the hiring process can help organizations reduce bottlenecks.
Companies can boost contingent labor cost savings even further by reallocating readily available talent with the help of their VMS and MSP. To proactively engage known labor resources and reduce vacancies, executives should utilize a broad-scope VMS with a business intelligence platform, complemented by an MSP that understands hiring nuances. Together, this integrated contingent workforce management model encourages redeployment and results in per-order and annual savings from 2-6%, with workers’ end dates seamlessly transitioning to start dates for similar open roles.
Knowing where a business should start driving hard cost savings can be a bumpy road, so letting experts take the wheel can be part of a comprehensive annual total cost reduction strategy. PRO Unlimited’s Strategy, Analytics & Metrics division provides a clear map of over 40 different cost savings methodologies and uses program data analysis to fuel actionable process improvements.
If you or a member of your team would benefit from a further discussion on how PRO is helping companies implement winning contingent workforce management programs globally, please contact a PRO representative at 800.291.1099 or email at firstname.lastname@example.org.
Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of PRO Unlimited and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.