Include These 6 Workforce Supplier Scorecard Metrics to Increase Efficiency
Scorecards are a useful tool for measuring an MSP’s alignment with service level goals and performance. Parameters such as headcount, jobs received and placements made help to identify both the strong and the weak performing suppliers. However, metric categories can vary widely from one MSP to another. Establishing a minimum requirement for creating scorecards and participating in a resulting scorecard review optimizes the value of supplier scorecards. Let’s examine some common workforce supplier scorecard metrics an organization can focus on to ensure program success.
1. Invoicing Compliance
Scorecards measure customer timely billing and should involve metrics like Invoiced On-Time Ratios (the ratio of timesheets entering invoiced status on time) and Timesheet On-Time Ratios (the percentage of timesheets submitted within three days of the end of the workweek).
2. Cost Compliance
Scorecard elements measure participation and compliance within the established MSP rates. Common metrics in this area can include Markup Adherence on placements (the percentage of submittals or placements made within the maximum markup rate) and Maximum Bill Rate Exceeded on Placements (the percentage of placements made within the maximum bill rate).
3. Supplier Responsiveness
This is another good standard metric, which weighs supplier participation with candidate submittals. Any solid workforce supplier scorecard must include metrics to gauge Response Rates (the percentage of job orders received by a supplier to which at least one submittal was returned) and Response Volumes (the average number of submittals made against jobs where there was at least one submittal).
4. Candidate Quality
This involves several metrics that may be applied to measure whether a supplier is sourcing and submitting quality candidates. These include Submittal-to-Interview Ratio (the overall percentage of candidate submittals that received interviews), Interview No-Shows (the number of candidates that failed to show up for scheduled interviews), and Placement No-Shows (the number of candidates that failed to show up for their first day of their engagement). Additional candidate quality metrics to include on a robust scorecard may include Submit-to-Hire Ratios, Interview-to-Hire Ratios, Percentage of Starts (the percentage of professionals scheduled to start who actually start), Shortlist Ratios (the percentage of candidate submittals that were released to managers) and Interview-to-Offer Ratios (the number of interviewed candidates that received offers).
5. Talent Quality
This measures the quality of contractors being placed on assignment. These metrics should typically examine the following:
- Performance Terms After First Thirty Days – the number of contractor terminations occurring after the first thirty days of the engagement
- Performance Terms in the First Thirty Days – the number of contractor terminations occurring within the first days of the engagement
- Performance Term Ratio – the percentage of contractor performance based terminations
- Average Evaluation Score – the average score on candidate evaluations within the scorecard period
- First Month Completion Rate – the number of contractors that completed the first thirty days of the engagement
6. Submittal Speed
This scorecard element measures the quickness with which submittals are received. There is a direct correlation of placements resulting from quality candidates that are submitted within the first 24 hours of a job opening. To get a bead on speed, a scorecard should include both the following metrics.
- Time to First Submittal (the average time in days between the release of job orders to the supplier and the submittal of their first candidate)
- First Day Submittal Ratios (the percentage of job orders released to the supplier on which at least one candidate was submitted within the first 24 hours)
If your organization focuses on delivering excellence in these six workforce supplier scorecard metrics, your organization, your MSP, and your clients are in a position to be as effective and efficient as possible.