Welcome to the Metasys Blog

Your one stop shop for transformative insights and groundbreaking trends in the talent industry today

5 Benchmarking Tools for Improved Talent Management

Read More
All Posts

Everyone in business seems to be tapping into the power of big data, and the field of workforce management is no different. The availability of billions of data points presents hiring organizations with the potential to optimize the entirety of the human resources function, from attracting potential job candidates to planning their retirement parties and every step in between. The expanding prevalence of contingent workers only widens and deepens data’s status as a central pillar in workforce architecture.

But big data can be too big. With granular data describing every detail of the skills, projects, tasks, processes, finances, quality, and other parameters of work, it is easy to become bogged down in information. How well you gauge which data are meaningful in your organization and how adept you are at harvesting the insights they contain will determine how successful your workforce optimization program will be.

Data selection and benchmarking are the keys to outperforming your competition in the battle to procure the most productive workers at the lowest total cost. Whether you handle contingent workforce management in-house or outsource it to a service provider, here are some benchmarking tools you can use to help you focus on the right data for your company’s KPIs:

  • Goal Alignment

Knowing what you want to achieve with your contingent worker management program will show the kinds of data you should be collecting and comparing to previous time periods and industry standards. For instance, if your main goal is to cut hiring and onboarding costs immediately, you will want to collect and analyze data that compares marketing, procurement, and training costs to managed services contracts and bill rates, etc. But if you want to improve the cost effectiveness of your marketing team, you will want to examine the quality, cost, and productivity of freelance writers and graphic artists vis-à-vis hiring in-house production talent.

Aligning business goals with workforce strategy empowers your Human Resources and/or Procurement departments to strengthen the data by using only pertinent sources and make it more relevant by adjusting the metrics and relationships it reveals. With these tasks completed, you can determine the metrics your enterprise’s performance depends on.

  • Proactive Process

Contingent workforce management contains a lot of moving parts. In order to ensure your company gains the cost savings and efficiency advantages an agile workforce can deliver, you must ensure all the activities that go into collecting, cleansing, evaluating, and acting on the talent-related data you possess work in harmony. This requires a central seat of authority. Whether you entrust HR, Procurement, or a hybrid team to handle the contractors, freelancers, and consultants you employ, all hiring of non-traditional workers should flow through that department.

This will ensure you capture and format all the data you can generate that is relevant to contingent worker engagement. You will build a robust set of touch-points that you can use to determine the best type of worker for each task, how much they should cost, and the best source of the skills you need. With a single team performing all the relevant tasks or interfacing with your managed services provider (MSP), you can minimize the threat posed by weak communication between departments. The team can benchmark the number, quality, assignments, and cost of each encounter with contingent workers. The office will know which workers are engaged and where, when their contracts expire, and whether there are opportunities to extend star freelancers or offer them similar positions in another area.

  • Task-based Taxonomy

Skills, not job titles, are becoming the preferred nomenclature for job seekers and training curriculum developers. It makes sense for your hiring organization to follow suit. By deconstructing jobs and projects, your company can compartmentalize and isolate the tasks your workers use on a recurring basis. Benchmarking each component skill, you can quantify how often and for how long each skill will be needed on each task – coding for app development, for instance, or customer service at a pop-up shop. You can collate tasks that require similar skills across departments in order to spread out the cost of hiring freelance workers. Say HR needs a script for a training video, marketing is planning an email drip campaign, and shipping requires a policy statement regarding damage claims. The contingent workforce management clearinghouse can aggregate these jobs and create a contract or requisition for a writer who possesses skills in all types of writing.

Creating a taxonomy of tasks and the skills required to accomplish them also helps everyone within your organizations understand the relationship among the needs of each department. Advanced benchmarking can compile a shopping list of skills needed for all common work tasks. That will make it easier for hiring managers to request contingent workers and for the central authority to bundle the skills and hire the most cost-effective combination of workers.

  • Cost-Factor Adjustments

For most tasks, you should be able to benchmark acceptable hourly or project rates. A few will be more difficult to benchmark, due to their infrequent need, ultra-specialization, rarity in specific geographies, or other factors. But you can arrive at the “right” rate for even new or hard-to-source skills. Build a standard expected cost for each skill, but be prepared to adjust the acceptable cost based on supply, seasonality, urgency of need, etc.

The more data you collect about the costs and circumstances surrounding each hire, the better you can employ machine learning to create adjustable rate cards. Similar to a weather forecast, these algorithms assess the current labor market, the duration of the anticipated contract, the quality you demand, and other conditions of a potential contingent engagement with previous hiring actions under similar conditions to predict the cost of filling the position. These forecasts can be quite accurate when the benchmark is fueled by a large enough database.

  • Professional Partnership

Database size and data analysis capabilities form the cornerstones of effective contingent workforce management benchmarks. Engaging an MSP that deals with numerous clients with similar hiring needs places these resources at your disposal. An MSP will be able to aggregate data from comparable businesses and industry sources and use it to enrich your internally collected statistics. Outsourcing your benchmarking tasks also eliminates any unintentional bias that may exist in your processes.

Metasys leverages best-in-class market data collection analytics to create decision matrices custom tailored to your situation. Contact us to discover how our benchmarking services provide the insights needed to streamline your supplier stable, increase candidate diversity, expedite time-to-hire, and improve your contingent talent management workflow.


Related Posts

Metasys Technologies Announces a Strategic Investment From Arkview Capital

DULUTH, Ga.--(BUSINESS WIRE)--Metasys Technologies (“Metasys”), a leading minority-certified provider of workforce management services, announced today a strategic investment from Arkview Capital, a minority-owned private equity fund focused on supporting diversity-oriented businesses. The investment will enable Metasys to continue its rapid expansion in providing a holistic solution across total talent management (including staffing, payrolling, managed services, VMS implementations and strategic consulting) to many of its Fortune 1000 and mid-market clients.

COVID-19 Ramifications: What Workers Should Expect

The United States seems to be on a path toward eradicating COVID-19, immunizing its population, and initiating plans for reopening the economy. The health threat still exists, but greater numbers of governments and leaders are turning their attention to what lasting effects the pandemic and the ensuing business shutdown will affect the country’s workforce. Metasys is confident the nation will rebound from the economic hardships the virus has and will continue to inflict. While today’s hardships have vastly different causes than previous ones, we may take some lessons from the downturn of 2008. Following that recession, wages remained stagnant for nearly three years and the impacts reached most industries and occupations. This time around the situation may not be as dire, as the country’s underlying economy was going strong before the disease reached these shores. But we also know there may be more painful times ahead; the economy will need time to recharge, and that will bring consequences to America’s workers. We have compiled our best estimation of the challenges and successes the U.S. economy can expect.

Boundless Recruiting with Location Inclusion

The disruption brought about by COVID-19 has made many components of work and workforce management more difficult. But it has made at least one initiative easier to implement: a policy of location inclusion. Location inclusion is a diversity movement that had difficulty gaining traction before social distancing orders transformed most organizations into remote workplaces virtually overnight. Companies now are experiencing the possibilities and efficiency benefits of incorporating decentralized employees, contractors, and gig workers. Though workers at most traditional, office-based firms still live and work in proximity, the pandemic has proven that it does not matter where talent is located.