How does our contingent workforce plan compare?
Last week, our President Chris Burkhard discussed on his Outside-In® Guy Blog the latest job market trends of increased job creation, low unemployment rate and high voluntary turnover. “Mark my words,” he warned, “…what we see is real. If the economy holds up we are entering a new era in employment. Get ready for turnover. Be prepared for job postings to produce less. Get conditioned to recruitment and talent being critical business issues that hold back your business.”
As the economy improves and the job market favors employees more and more, it’s becoming ever-more important to have a workforce plan. What talent is critical for your business to grow? What is your plan to attract the talent you need? To engage and retain them? What percentage of your workforce is temporary? What percentage should this be, and does your plan create cost savings? What is the top priority for your plan this year? What are the most important metrics to measure for your program? These are all questions you should answer to create a workforce plan.
Often, when building a plan, talent leaders look to the market for best practices and benchmarks. “What do others do?,” we wonder. Let me share some insights from 2015 Contingent Buyers Survey (Staffing Industry Analysts) about what others are doing with their contingent workforce, specifically.
For which skill sets do organizations spend the most money?
The top 3 skill sets that buyers of temporary staffing services reported spending the most money on are Information Technology, Engineering/Design, and Industrial/Logistics/Transportation Personnel.
What is the average contingent worker assignment length?
The average contingent worker assignment length is 12 months. With survey respondents reporting lengths anywhere from 2 weeks to more than 18 months. Most assignment lengths are 12 months, more than 18 months or 6 months, respectively. Very few said assignments averaged 5 months or shorter.
What is the top priority for contingent workforce programs this year?
The top 3 priorities for 2015 contingent workforce programs are the following:
1. Providing excellent customer service to internal stakeholders.
2. Reducing/ controlling costs
3. Tie: Globally integrating CW program; Implementing VMS
Approximately what percent of organizations’ workforce is made up of contingent workers?
About 4 in 10 fell somewhere between 9 and 20%, with the average response of 15%. The leading response was 9-10%, followed by 16-20% and 11-13%. If you’re overwhelmed and thinking, “I have no idea what my workforce breakdown looks like, rest assured that 13% had no idea either.
What are the most important metrics to measure contingent workforce programs?
The metrics that are most important to contingent buyers are Cost (bill rates compared to other suppliers), Efficiency (Time-to-fill) and Quality (Performance grading of assigned candidates).
How does your workforce plan compare? While comparing your organization to others can be helpful in understanding your own company, it does not always lead to obvious answers for what you should do.
Want to talk out your talent plan as we enter a new phase of employment?
Email email@example.com and we’ll schedule time for you to chat with our workforce planning expert, Chris Burkhard. We guarantee a phone meeting with him within 3 days.