How Does Contingent Workforce Data Improve Visibility and Decision-Making?

Companies recognize the need to improve visibility into their flexible, contingent workforce and act on data-driven strategies. That need for workforce data and the visibility it provides influences everything from technology investment to managed service provider (MSP) relationships. But with all the fuss about workforce data, a practical question remains: What does an informed, highly impactful contingent workforce decision really look like?

To shed light on the answers, we looked at decisions companies have made based on data from our own Acumen® Intelligent Workforce platform. The Acumen Insights component of our Intelligent Workforce Platform captures information in the contingent workforce life cycle, from market conditions to supplier performance, benchmarking data and granular details on staffing operations. The system is supported by expert advisors to interpret workforce data, identify problems and opportunities, and facilitate solutions. 

As a leading provider of workforce solutions for more than 20 years, we have seen the dramatic impact that better visibility into a client’s extended workforce and supply chain performance can have on a client’s productivity and bottom line.

Here are a few real-world examples of data-informed decisions from our client network and what they may mean for your contingent workforce strategy.

Case Study: Tailored Dashboards Lead to Improved Hiring Cycles, Diversity Spend for Multinational Technology Company

Even in established MSP partnerships, there is still room for improvement. That’s where data comes in. By developing tailored dashboards unique to each client’s areas of interest and utilizing VMS functionality, AGS can provide impactful insights during monthly SLA reviews, including recommendations on how to boost hiring cycle time.

Situation: Slow Hiring Times, Lack of Diversity Spend

A technology company sought recommendations on how to improve its overall hiring cycle, including lowering time-to-fill rates and reducing cancelled requisitions without impacting the quality of work. In addition, the MSP client was looking to increase diverse supplier spend. Working closely with client stakeholders, AGS developed tailored SLA and diversity spend dashboards to not only track the performance of this initiative, but to drive recommendations throughout the process.

Action and Impact: Faster Remote Hiring and Efficient Requisition Processing Generates Results

Using custom VMS fields to capture max rate based on candidate locations, the AGS program team recommended and implemented a remote hiring initiative for a client experiencing increasing cancelled requisitions and a limited candidate pipeline. We then leveraged market data to determine ideal hire locations and rates for remote hiring. Readily available dashboards enabled the program office to keep track of the client’s large requisition load and lower time-to-fill rates while exceeding SLA and KPI targets.

Since implementing these tailored dashboards, the client’s remote hiring requests now fill five days sooner than traditional on-site requests. Allowing multiple hiring locations has also reduced cancelled requisitions from 6.9% to 0.4% during the first six months of the initiative. Further, using data gleaned from the diversity spend dashboard has increased diverse supplier spend over six percentage points. This data also enabled the client to reduce its in-house analytics team and reallocate five resources to other parts of the business.

Case Study: Tools and Testing Help Align Rates, Attract Desired Talent

Sometimes candidate role and rate card issues have root causes that go unnoticed. A smart data system provides analysts with a detailed look into candidate data, such as years of experience and location, which can help inform future-looking predictive analysis—and ultimately lead to clients’ paying appropriate market rates for contingent workers.

Situation: Identifying Issues, Leveraging Tools

In one example of a process bottleneck, our MSP program team conducted a diagnostic and proactively discussed a position and rate card alignment issue with our financial services client. Our team leveraged additional tools such as the rate intelligence feature of Brightfield TDX to identify how candidates’ years of experience impact bill rates in specific client locations. The rate intelligence feature analyzes rates based on skill set, location and experience level, using the expansive Brightfield TDX portfolio.

Action and Impact: Data Intelligence Helps Attract Appropriate Candidates

Using tools such as Acumen Insights to provide a look back, AGS identified the issue of position/rate-card misalignment. Then, incorporating Brightfield TDX’ rate intelligence tool, we provided real-time, accurate data to inform a future-looking predictive analysis.

Further, through AGS’ implementation of data-informed job levels (e.g., Developer III vs. Developer IV), the program now attracts candidates with the desired experience, and the client pays appropriate market rates along with increased retention of contractors within those roles.

Case Study: Switch to Competitive Bidding Process Helps Financial Company Boost Payroll Utilization

Without the proper information, your adoption and rates can be significantly underutilized. Taking a deeper dive into current practices can uncover lags in the process, and introducing competitive bidding and max ceiling rate mandates can lead to improved payroll utilization.

Situation: Adoption and Max Rates Lagging at Hiring Manager Level

Our financial client was experiencing a lack of program adoption at the hiring manager level – only 55% of pre-identified contractor usage (payroll) was being hired at 105% of the recommended max rate. In an effort to drive down payroll and pre-identified usage, the client looked to our competitive bidding process for additional oversight and cost savings. Leveraging data from the Acumen Insights module, AGS’ analytics team responded by:

• Reviewing existing job titles and hiring managers with the highest pre-identified and payroll usage to identify who needed additional training and guidance
• Educating hiring managers on the benefits of using the competitive bidding process and potential savings at scale, along with benefits of increased retention and better time to fill
• Building a monthly dashboard showing the payroll utilization and associated cost by business unit and manager to track the progress and conversion to competitive bidding
• Recommending a 90% max ceiling rate mandate for those hired under the payroll and pre-identified process

Action and Impact: Process Changes Produce Payroll Improvements

As a result of our recommendations, the client saw a 20% reduction in payroll and pre-identified usage. Managers that chose to capitalize on the benefits of the competitive bidding process saw a decrease of 15% on the average bill rate, along with a three-day decrease in time to fill, and a successful finish increase of 5%.

Hiring managers that utilized the payroll and pre-identification process were able to obtain contractors at 90% of the max rate – compared with 105% – and gained visibility to negotiate with the suppliers they had historically only worked with at set rates.

Case Study: Data Insights Boost Program Adoption, Support Key Value Drivers

Sometimes an MSP sponsor needs a little more information in order to truly understand the ins and outs of their program. With Acumen Insights, AGS can generate the necessary data to provide insights into program value and support key value drivers, including user experience, delivery excellence, data transparency and cost savings.

Situation: Program Sponsor Required More Information

When an e-commerce client’s MSP program sponsor wanted additional data transparency and insights into its program, our client delivery team partnered with our business analytics team to build additional dashboard insights via Acumen that enabled granular visibility into program workflows and allowed for faster decision making. Specifically, we took the following actions:

• Incorporated dashboard insights with monthly business reviews to educate and advise on program performance
• Provided monthly benchmarks, data-driven recommendations and prescriptive consultation to improve program support and optimize delivery
• Created data-driven success stories to support program adoption

Action and Impact: Strong Sponsor Advocacy Helps Decrease Fill Times, Improves Program Adoption

These actions not only helped AGS build a trusted advisor relationship with the client but also improved user experience with a decrease in time to fill by two weeks.

With strong sponsor advocacy in place, we could further focus on driving program adoption and providing greater value to our client through targeted program adoption plans, misclassification strategies and statement of work management.

Contingent Workforce Visibility: An Opportunity Is Likely Hidden in Your Data, Right Now

These examples point to the same underlying theme – there is value in visibility. With visibility into data on current processes, external performance and benchmarking, companies are empowered to make data-driven decisions that will improve processes or avoid problems.

In fact, it is very likely that the potential for a better, more impactful workforce strategy decision is hidden in the data most companies have on hand. Additional context and expert interpretation are the keys to unlock that potential. A truly strategic workforce partner should have the broad data analysis capability to find solutions, fix processes, avoid bad decisions, make adjustments for big impact and drive long-term workforce strategy.

Many solutions provide some level of visibility into contingent workforce activity, but few have the combination of internal data analysis, industry and multi-company benchmarking, and human problem-solving expertise to deliver actionable intelligence. Don’t expect less from your workforce partner.