The quality of your suppliers is crucial to the success of any Contingent Workforce program. Outlining the metrics, frequency and methods of measuring supplier performance, via Supplier Score Cards, can be a key step toward delivering quality results that can be applied across the program.
Defining what matters
It is important that supplier score cards be aligned and evolve alongside the strategic direction set by the organizational goals. For this purpose, key stakeholders play a major role in determining the metrics required to achieve these goals, and continuously evaluating them.
There are dozens of metrics to consider while assessing the performance of a particular supplier. CCW has identified 20 metrics, grouped into six categories covering every facet of program management.
For an effective score card, however, CCW recommends selecting no more than 8 simple and solid measurements that focus on the current business needs in relation to the organization’s geography and critical labor categories - or a combination of both. These must be metrics deemed essential to the organization’s objectives, which will evolve as the client’s business requirements evolve. Given the critical role played by the program stakeholders in driving the customization of our suppliers’ scorecards, we invite their continuous feedback and input.
Metric targets, a key component of a score card, are required for each metric and are used as a baseline to measure a suppliers’ performance. Exceeding a target results in a score of 100%. Scores below the target are determined as percentage of the target.
Which metrics are most important?
A supplier’s performance can be measured by individual metrics, categories or as a whole (one score for all metrics). However, some metrics are more important than others, as they relate to your organizational requirements and goals. For this reason, assigning a weight for each metric ensures your requirements and goals are accurately reflected in the score card.
Each category is listed below, with its purpose/benefit and the specific metrics that can be tracked.
Purpose/Benefit: Assesses a supplier's level of service/participation
|# of Candidate Submissions per Opening||the ratio of candidates submitted by the supplier to the total number of resources requested|
|% of Requisitions Declined from Requisitions Received||the rate of Requisitions declined by the Supplier out of the total number of requisitions received|
Purpose/Benefit: Assesses the quality of the candidates submitted by a supplier
|% of Candidates Rejected by MSP from Total Candidates Submitted||the rate of candidates rejected by MSP out of the total number of candidates submitted|
|% of Candidate Interviewed from Total Candidates Submitted||the rate of candidates interviewed out of the total candidates submitted|
|% of Candidate with Offers from Total Candidates Submitted||the rate of candidates with offers out of the total number of candidates submitted|
|% of Late Starts from Work Orders Submitted||the rate of candidates late to start (actual start date is after the start date accepted in the work order) out of all placements that started|
|% of No-Starts from Candidates with Offers Accepted||the rate of candidates who never started out of all the candidates who accepted their work order. Also known as "false start rate."|
|% of Hires per Opening||the number of openings filled from total openings received. Also known as "fill rate."|
Purpose/Benefit: Assesses the quality of the contingent workers (CWs) submitted by a supplier
|Involuntary Termination (Removals) %||the share of CWs that were removed from their position/contracts involuntarily out of the total number of CWs with contracts terminated in period|
|Assignment Completed %||the share of CWs that have successfully completed their assignment out of the total number of CWs with contracts terminated in period|
|Conversion %||the share of CWs that were converted by client as direct hires out of the total number of CWs with contracts terminated in period|
|Assignment Quit %||the share of CWs that voluntarily ended (quit) their assignment out of the total number of CWs with contracts terminated in period|
|% of Positive Terminations (Conversion and Completion)||the share of CWs that have either completed their contract or were converted to full time employees out of the total number of CWs with contracts terminated in period|
Purpose/Benefit: Assesses a supplier's level of responsiveness
|Cycle Time (Requisition Opening – First Resume in Days)||average time taken for supplier to submit the first resume for each requisition received. Timer starts when supplier first receives the requisition broadcast|
|Cycle Time (Resume Selection - Start)||time the supplier takes from offer acceptance to the actual start day|
Purpose/Benefit: Assesses a supplier's compliance with onboarding requirements and other risk factors
|Late Onboarding Compliance||the rate of candidates with a delayed onboarding process out of the total number of candidates hired|
|Drug Test Completion||the rate of drug tests completed out of the total number of candidates hired|
|Background Check Completion||the rate of background checks completed out of the total number of candidates hired|
Purpose/Benefit: Assesses the cost of a supplier
|Candidate Submission Rate – Maximum Requisition Rate||the average ratio of the submitted candidates’ bill rate to the maximum requisition allowed bill rate|
|Average Markup||the average supplier markup (difference in direct labor rate paid to worker, and invoiced bill rate) of all labor invoice transactions in quarter|
Configuring Your Metrics
MSP/Admin users can define the criteria and weights used for each metric in determining supplier scores. Navigate to Analytics > Supplier Performance Scorecard Configuration. Click Create New Configuration.
Enter a Configuration Name.
Select a Status (Active or Inactive).
Enter a Baseline Threshold for each metric. These are the numbers that represent an acceptable performance by a supplier. For example, for # of Candidate Submissions per Opening your Baseline might be 10. For % of Late Starts your Baseline might be 0%.
Enter the Weightage. Metrics with higher weights factor more heavily into the supplier's score.
Generating Score Cards
MSP/Admin users can retrieve a supplier's Scorecard by navigating to Analytics > Individual Supplier Performance Scorecard (or to retrieve Scorecards for multiple suppliers, navigate to Analytics > Supplier Performance Scorecards).
- Select Performance Period From and To and select a Supplier Name.
- Select one or more options in the Work Location field to request score cards per location.
- Select a Configuration Name which includes the baseline thresholds and weights for each metric, used to generate your report.
Complete all remaining required fields and click the icon to the right of the Configuration Name field to generate the report. Score card reports can be exported as a PDF.
The left side of the report shows final scores for each supplier included in the report, along with the assigned weights for each category. The right side of the report breaks down the specific scores for the individual metrics within each category.