If you can’t measure it, you can’t manage it. This statement, often (erroneously) attributed to Peter Drucker, is nevertheless true. When it comes to measuring the effectiveness of an EOR solution, there are two main sets of metrics to examine. Here’s a breakdown of the two metrics to review when seeking to validate the efficacy of one’s EOR provider.
Nothing is more concrete than quantifiable results. Workforce management leaders must ask, “Is the EOR solution we’ve engaged providing the results we expected when we first implemented?” There are a number of data points to examine while seeking to gauge the results of an EOR. First and foremost, review the extent to which the EOR is driving cost savings. This can be measured versus your internal costs of employing and onboarding workers minus the amount paid to the EOR supplier in a given time period. EOR solutions typically drive between 10-15% savings, depending on the skill set engaged.
The other key metric pointing to results is administrative efficiency. A top performing EOR improves operational efficiency, freeing workforce management resources to focus on more important aspects of their overall function. Administrative efficiency can be measured in two ways. First, survey your team for workload and job satisfaction gains as compared to the resource(s) previously handing this worker population. Next, calculate the hours spent on managing this process prior to implementation and multiply by the average hourly rate versus the current time spent managing this worker population. Appropriate functions to examine when seeking to measure efficiency gains via EOR include:
- Ease of onboarding and off boarding for company
- Enhanced candidate experience for the workers
The other crucial measure of efficacy is user satisfaction; both on the part of client managers and the workers governed by the EOR program. To gain insight into client manager and worker satisfaction, start by deploying surveys on a formal and informal basis, which can provide great insights to the effectiveness of the EOR program. To measure satisfaction among client managers, nextSource recommends performing regular satisfaction surveys of both groups. These can be both formal on a bi-annual basis and ad hoc when interacting with a manager who has a population of EOR workers. Here is a sample of a formal survey to provide a basis for creating your own satisfaction surveys.
Client Manager Survey Example
- Is the current EOR-directed process more efficient than before the EOR was implemented?
- Are the systems and tools being used (i.e. an online portal for timecard approvals) easy to use?
- When engaged are the EOR support resources helpful and responsive?
- Has the EOR provider reached out to check on worker(s)?
- Has the EOR provider had to deal with any employee relations issues?
- If no, was it resolved satisfactorily?
Worker Survey Example
Worker surveys should be deployed at specific intervals of their assignments.
a. Suggested intervals and possible questions
i. After onboarding
- How long did the onboarding process take?
- How easy or complex was the process?
- Were resources assigned to help answer questions?
- Were those resources helpful and responsive?
ii. Half way through assignment
- Has the worker been paid on time?
- Has the worker been offered benefits? (if applicable)
- Did the worker select the benefits?
- Why or why not?
- Has the EOR provider had to address any problems during the assignment related to employee relations inssues (i.e. being later, interactions with coworkers)?
- If so, was it resolved?
iii. Post assignment
- How was the end of the assignment communicated to the worker?
- Do they feel they receieved sufficient notice?
- How was off-boarding handled?
- In person
- Over telephone
- Was their last paycheck accurate?
- Did they receieve Cobra information?
A baseline for achieving both results and satisfaction with the program should be established at the outset of the EOR contract. Measure and report on both results and satisfaction quarterly for optimal effect.