Financial Organization Case Study
Introduction
We recently reviewed a large Financial Organization’s (FO) consultant information, and did an analysis of their current billing rates with the rates found within the PeopleTicker. We used our PeopleTicker Technology to review and benchmark applicable labor and bill rates for the categories and skill sets that the FO presented to us. (It should be noted that the current outlook for the IT consultant industry is that it is a buyer’s market and it will continue as such for at least the next 12-24 months. This market offers clients and nextSource a great opportunity to insure that future pricing for hourly consultants reflects this analysis and rate benchmarks.)
One of our goals for the FO’s vendor manager was to continually provide them with up to date salary and rate trends. With this information we worked with them to insure that consultant salaries and related billing rates reflected any significant downturns in the market. Through this type of proactive rate management, the FO was insured that their consultant resources would always reflectcurrent market pricing. Our analysis turned up some drastic differences betweenthe current FO’s bill rates and current market conditions through the PeopleTicker.
Problem: The customer’s control of consultant spend and familiarity with current market rates was insufficient.
Solution: The PeopleTicker The PeopleTicker is a real-time, dynamic, online software tool that enables users to perform full time salary and consulting/temporary bill rate benchmarking by cross-referencing skill set data by geographic area and incorporating experience factors and key word searches for specific positions.
The Model
Through our patent pending technology we are able to continuously monitor the market and incorporate movements in salaries and rates on a realtime basis, updating information as frequently as every fifteen (15) minutes. In addition, users may select any number of job titles to incorporate in their personal “rate streamer” that they create on their desktops to provide the latest salary/rate information in a format similar to the streaming technology employed by on-line stock brokers.
Methodology
What are consultants/employees worth in dollars? Is a company paying too much or too little? How accurate is the benchmarking data? What is a market rate? These are some of the questions the PeopleTicker strives to address.In order to provide precise data, the PeopleTicker tracks several different types of data independently. Each type of data is processed through algorithms to determine market rate.
| Data Type | Description |
| Job Seeker Resumès | To track Direct Labor Rates and Annual Salaries, the PeopleTicker analyzes asking price information for un-represented job seekers (not represented by an agency). |
| Agency Resumès | To help track Bill Rates and Agency Markup percentages, the PeopleTicker analyzes resumès posted by agencies (represented job seekers). |
| Agency Jobs | To help track Bill Rates, the PeopleTicker tracks jobs posted by agencies and the associated asking price. |
| Direct Employer Jobs | To help track Annual Salaries, the PeopleTicker tracks jobs posted by direct employers and the associated asking price. |
nextSource’s technology and development teams spent 18 months designing the tool, creating algorithms, and writing and testing the code. Currently, the PeopleTicker is the first compensation tool to provide data on both full time salaries and consulting/temporary bill rates for all types of human resourcesas well as related agency fees and markups in one source.
Features
Real-time Rate/Salary Information
Don’t wait for that survey result. By the time you get it, it isalready outdated. The PeopleTicker monitors market rates and salaries in real-time. Read below to see how the PeopleTicker is different from other compensation tools…
| Survey Based Tools | The PeopleTicker |
| Survey data is outdated | The PeopleTicker monitors hourly rate and annual salaries in real-time. |
| Survey data leaves you comparing apples to oranges | Tired of selecting from a list of job titles and job descriptions that do not reflect the skill set you are trying to price? The PeopleTicker lets you define the title and hte skill set you want. |
| Survey data monitors only annual salaries | The PeopleTicker monitors annual salaries as well as hourly rate information for every skill set. |
| Survey data is not market data | Survey data tracks what companies are spending on employees they have already hired. The PeopleTicker gives you the information you need to onboard at the current market rate. |
No Pre-Canned Job Titles
Tired of comparing apples and oranges? The PeopleTicker lets YOU define the job titles and skill sets so you can be assured the rate/salary information is exactly what you are looking for. The PeopleTicker works with the same Boolean search strings you have used to search for resumes. Thisapproach allows you to specifically define job function and related skills and experience so that you can be assured you are seeing the rate that matches your definition.
Access to Agency Markup Percentages
Are you staffing suppliers charging you too much? Have they adjusted their Bill Rates to match the latest dips in the market? Find out how the average agency markups are affecting the bill rates you should be paying today.The PeopleTicker will show you average agency markup percentages for the skill set and location you define. Not sure what markup your agencies are charging you? The PeopleTicker will tell you the pay rate (direct labor rate) forthe hourly worker so that you can determine your current agency markup percentages.
Trend Analysis
Are rates going up or down? Should you renegotiate with your vendors now or wait? The PeopleTicker gives you access to pricing trends. The PeopleTicker monitors market rates in a current 90-day window. Monitoring these trends provides invaluable information for affective negotiations.
Results
The results of the speed analysis are as follows:
| Total Spend (in millions) | Savings (in millions) | |
| Chicago Analysis Summary | ||
| Financial Organization | $4.8 | |
| The PeopleTicker | $3.6 | $1.2 |
| Connecticut Analysis Summary | ||
| Financial Organization | $15.1 | |
| The PeopleTicker | $10.9 | $4.2 |
| New York Analysis Summary | ||
| Financial Organization | $4.3 | |
| The PeopleTicker | $3.1 | $1.2 |
| Total Analysis Summary | ||
| Financial Organization | $24.2 | |
| The PeopleTicker | $17.6 | $6.6 |
Conclusion
Some fairly significant differences were apparent between the locations. Taking this into account, we suggested that these differences be approached with caution, as the analysis did indicate that a significant savings opportunity existed for the FO. Our confidence level was high that we would be able to save the company 10%-15% of their current spend, with a strong possibility of achieving a 20% savings.