Your Workforce ROI may not always be easy to measure
Through the nextSource Progressive Program Model™ we’ve standardized the practice of Supplier Audits, Benchmarking, Cost Baselines and the establishment of Savings Goals to increase ROI throughout your program’s lifecycle. Our teams regularly report on these savings for full transparency and use these discussions to provide further insight into future savings plans. Here is a little more detail on each of these buckets of potential savings and why we examine them as part of our model.
Standardized supplier audits are a great practice when it comes to finding ways to boost the ROI into workforce management planning. Supplier audits are used to help identify and address problems you may or may not readily identify in the quality of the service delivered by your trusted providers. If a supplier begins to waver in terms of meeting your service level agreements, by the time it becomes obvious, you may have already lost time and money. The regular supplier audit process ensures the early warning signs of quality erosion are identified and addressed before they spread.
The Progressive Program Model’s supplier audit inspects and evaluates your vendors’ quality management systems, its practices (and any recent changes made to them) and documentation to arrive at recommendations about the overall health and continuity of their deliver. Audits like this are a key tactic to ensure cost performance and quality control.
Benchmarking practices are of critical importance to ensuring satisfactory ROI into workforce management programs. In order to fully understand the total cost of your contingent workforce operations, an organization must have a point of reference when it comes to acquisition of like-kind talent resources from numerous sources. Rate benchmarking helps a hiring authority understand where its costs align or misalign with market rates in a number of key areas.
The Progressive Program Model benchmarking function looks at three key benchmarks. First is the Bill Rate which represents the total amount your company pays, per hour, for every contingent worker role. Next, the process looks at the largest component of the invoice, the Pay Rate or the hourly wage a staffing agency pays a contingent worker for working for your company. The third is the markup, or the amount a supplier agency may charge over and above the pay rate. The markup can include pass-through charges like payroll taxes, social security, unemployment insurance, benefits such as insurance paid time off/vacation, sick days, retirement, and other perks. It also can include the costs of program overhead incurred in recruitment, management, training, administration, and other related costs.
The other key element of any good ROI measurement is the establishment of cost baselines and attainable savings goals. The Progressive Program Model ensures good governance by working hand in glove with customers to capture as-is state expenditures and current budget guidelines before then setting plausible expectations for achievable savings goals.
Can you easily provide your organization with workforce related ROIs? If not, contact nextSource, it’s what we do.