30 Jun Integrating Contingent Workforce Data into People Analytics Practices
Vendor Management Systems (VMS), like Flextrack, generate countless data points on procuring and leveraging the non-employee or contingent workforce into an enterprise workforce strategy. Tracking metrics on hiring, how long it takes, process bottlenecks, worker utilization, tenure, attrition, cost, compliance, diversity, satisfaction, risk and more are core to the visibility provided by a VMS. If businesses leverage a VMS for all non-employees, then they receive powerful data to improve their contingent workforce program. Businesses would also be able to incorporate the VMS into enterprise workforce planning activities.
As more and more organizations develop their people analytics practices, they are able to leverage data to make strategic decisions on how they are managing people to achieve desired business outcomes. According to research by Bain & Company, around 70% of the fortune 1000 companies had a practice for people analytics in 2018, but are expecting to hit 100% in the near future. The research also noted a 40% disparity between productivity and organizations focused on people analytics. The need is clear to have a focus on talent analytics. To drive the effectiveness of these teams, however, organizations need to incorporate non-employee data into their people analytics practices as the contingent workforce can represent anywhere from 30% to 60% of the total workforce.
Why do you need to integrate your employee and non-employee data into your people analytics practice?
Organizations should know who is actively working for the company regardless of their employment status. This data is also actionable and can provide the necessary information technology (IT), risk and compliance groups needed to audit and comply with internal data and access standards.
For most organizations, the largest cost is people. Having this data integrated will provide leaders and managers with detailed financial information to truly understand where and how people are being assigned and managed.
Workforce Deployment and Redeployment
Losing top talent can impact an organization. What’s even worse is losing someone who can meet other needs across the organization for similar skills once an assignment ends. Having visibility into all the skills and talent available in the contingent workforce to better redeploy resources will reduce learning and transitional time, thereby driving higher productivity.
Addressing Skills Gaps
A better understanding of the correlations between workforce retention and future talent needs will help organizations better address skills gaps. It can also better inform all of your talent sourcing channels to be proactive in attracting future candidates.
Better Talent Sourcing Strategy
Having data to drive better hiring decisions can be the difference between achieving your objectives and not. Having all your workforce data together will guide how you are utilizing your talent today and inform which workforce segment will best meet your current and future needs.
The user experience during the hiring process can have a significant impact on attracting workers alongside how long it takes to hire talent. Having data to assess the process, capture user experience scores and identify bottlenecks will drive a better user experience and allow access to talent more quickly.
Integrating employee and non-employee data into people analytics practices has become a necessity for organizations to effectively manage all segments of the workforce, including non-employees. This visibility connects human resources (HR), talent acquisition, finance, budgeting, compliance and other key functions within an organization to effectively operate and get the talent they need to achieve expected outcomes.
To effectively execute a people analytics strategy, an enterprise needs to map out all of the systems that hold people, data and design metrics that mean the most to the business. An enterprise also needs the right technologies to effectively integrate this data and provide the predictive and diagnostic analytics required for a data-driven, human-centric company.
To learn more, follow Flextrack on LinkedIn: flextrack-inc.
Mark has over 25 years of experience in the workforce solutions industry. Mark has been responsible for implementing, operating, and transforming contingent workforce solutions for hundreds of organizations worldwide. Mark has also led technology teams that built and managed VMS solutions and other technology solutions to digitize and transform extended workforce solutions