SEPT 12 2:45 PM GOLD CONCURRENT SESSION: TRANSFORMATION Supplier Success Strategies Provider Management that Makes Sense Moderator: Diana Gabriel, VP, Strategy & Solutions, Staffing Industry Analysts Panelists: Sandra Buhler, VP, Contingent Workforce Program Office, Union Bank Mark Farbman, Regional VP, The Select Group Vik Kalra, Managing Director, Mindlance Inc. Liz Ricketts, Manager, HR Shared Services, Human Resources, Sony Computer Entertainment America LLC Pinnacle Plus Sponsors:
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Supplier Success without Expectations = Dissatisfaction Factors that drive an engaged supplier base Use of Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) Use of SLAs is standard practice KPIs = Satisfaction KPI vs. SLA
Contingent Workforce Optimization Roadmap Confidential and Proprietary. 2012 by Crain Communications Inc. All rights reserved.
2013 Contingent Buyers Survey: Use of SLAs and Key Performance Indicators to manage MSPs Key findings: Results are based on findings from our 2013 Contingent Buyers Survey, conducted in 2Q13 and reflect the opinions of 187 contingent workforce managers from companies with at least 1,000 employees. The use of Service Level Agreements (SLAs) is standard practice among large buyers who use an MSP. About three quarters of respondents indicated that they use an SLA, while only a very small minority indicated that they did not use an SLA. It was not clear which of the remainder of the respondents used SLAs. We asked buyers who use an MSP to list the criteria they use to evaluate their MSP. The various responses were categorized by Staffing Industry Analysts into 21 separate Key Performance Indicators (KPIs). A total of 56 respondents gave at least one KPI. The most commonly named KPIs were satisfaction of stakeholders, including hiring managers and staffing firms, named by 46% of these respondents; minimizing time-to-fill or cycle time, named by 45%; cost savings, 39%; fill rate, 27%, minimizing turnover, 23%; and worker quality, 21%. We also asked buyers about satisfaction with their MSP. Those that cited using the KPI hiring manager satisfaction reported the highest net promoter scores for their MSP. KPIs associated with significantly higher net promoter scores also include cost savings and compliance/auditing.
What is the Difference Between a KPI and an SLA? KPIs Indicate when a supplier is on track or struggling to meet agreed level of service Example: Number of submittals to interviews SLAs Provided as formally negotiated contract between parties Example: Time to submit
Use of Service Level Agreements (SLAs) is standard practice We asked buyers who use an MSP whether they have a Service Level Agreement (SLA). Not every buyer indicated whether they have an SLA; hence, the large unknown component in the chart at right. Nonetheless, among buyers who responded and who have an MSP, 74% use an SLA and only 1% indicated that they do not use an SLA. Percent of respondents who have a Service Level Agreement (SLA) Unknown, 25% No SLA, 1% Source: Staffing Industry Analysts SLA, 74%
How satisfied are buyers who use various KPIs? Buyers were also asked to rate how likely it is that they will recommend their MSP to a friend or colleague, on a scale of 0 to 10, with 10 meaning that they were very likely to recommend. These responses were turned into a Net Promoter Score by calculating the proportion of respondents who answered 9 or 10 (called promoters) and subtracting the proportion who answered 6 or less (called detractors.) Net promoter scores for buyers who had included various Key Performance Indicators among the criteria they use to evaluate their MSP are listed at right. The most satisfied buyers listed hiring manager satisfaction, cost savings, compliance/auditing and time-to-fill among their KPIs. Worker compliance/audits includes candidate screening, IC compliance and audits. It does not include rate card compliance. MSP net promoter scores among buyers with the following KPI Hiring manager satisfaction Cost savings Compliance/Auditing Time-to-fill Supplier satisfaction Worker quality Fill rate Minimize turnover 15% 20% 25% 25% 32% 41% 40% 56% Source: Staffing Industry Analysts
Let s now talk about real life and how to apply these concepts
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