21 January 2021

4 KPIs That Will Improve Your Temporary Workforce Management Program

John Clark
John Clark

The complex nature of managing a non-employee workforce means the use of a vendor management system (VMS) is absolutely crucial when it comes to gaining complete visibility into the performance of your program.

Through the automation of your contingent workforce management processes and the consolidation of your staffing agencies into one centralized location, a VMS will ensure your business is able to effectively monitor, measure and manage vendor performance. 

With the improved visibility a vendor management system brings to your temporary workforce program, your business will be able to properly monitor and track vendor performance to ensure you are getting the best bang for your buck - as well as achieving your workforce targets at the same time. 

With that in mind, here are four key performance indicators (KPIs) that will help you to evaluate how successful your temporary workforce management program is.

Key performance indicators that your business should keep track of

#1 - Time-to-fill

One of the most important metrics to evaluate your staffing vendors on is time-to-fill. This measurement looks at the number of calendar days it takes a vendor to fill a position, from the day your business first opens a temporary position to the day that your vendor is able to fill it.

If the vendors you are using aren’t meeting your time-to-fill requirements, it’s a sign that your company is wasting money and losing out to talent to your competitors. A successful temporary workforce relies on your vendors being able to place skilled and experienced workers into your organization in a timely manner.

#2 - Turnover 

Turnover within your company’s temporary workforce is expected - after all, it is a ‘temporary’ workforce. Yet that doesn’t mean the independent contractors being placed within your organization should be leaving before their contract is up.

High turnover within your temporary workforce is a sign of one of two things. Firstly, it could mean your worker experience isn’t up to scratch (something you would need to improve if you want to re-engage temp workers in the future). Secondly, it could suggest that your staffing agencies are placing the wrong temporary workers within your business. 

#3 - Time-to-hire

On the surface this may sound the same as time-to-fill, but we can assure you that it’s different and will give you completely different insights into the performance of your non-employee workforce management program. 

Time-to-hire is the time it takes to fill a position once a staffing agency has made contact with a potential candidate (rather than from the time the position is opened up). This metric will show you how long it takes a staffing agency to fill a position once they have found a valuable candidate. 

#4 - Fill rate

Fill rate is the ratio of temporary position orders received by your staffing agencies compared with the number of job orders filled each month. Low fill rates could indicate poor processes, underperforming staffing agencies or rate card issues. Once you have clear visibility into fill rate, your organization will be able to take steps to resolve those issues. 

How Conexis VMS can help

Are you looking to improve visibility into your temporary workforce management program, but are concerned there’s no vendor management solution out there for your organization due to your smaller temporary workforce budget? Conexis VMS is here to help.

Conexis VMS is the very first vendor management system built specifically for companies with smaller ($1m to $10m) non-employee workforce management spend. Our innovative cloud-based vendor management solution will help your business automate, centralize and consolidate all aspects of your contingent workforce program.

Want to learn more about the Conexis VMS software? Contact us today. Our team of highly skilled and knowledgeable VMS experts would love to answer any questions that you may have about using a vendor management system to improve your non-employee workforce program. 

Request a Demo

John Clark

John Clark

A Co-Founder of Conexis, and Staffing Industry Analysts’ (SIA) top 40 under 40 recipient, John has more than 15 years experience in the Contingent Workforce, Managed Service Provider and VMS technology space. John has designed, built and run dozens of client workforce programs across multiple industries, managing over $1bn in spend. John’s expertise sits in both program design and delivery as well as VMS technology implementation and management.

Subscribe to the Conexis Blog