The Value of Data: Pivotal Information to Manage Your Contingent Workforce Spend
Amid a heated race to innovate, talent retention is important to business success. In fact, 75% of risk executives cite hiring and retaining talent as being “very important” for business growth. One of the key levers is the use of a contingent workforce. However, leaders are sometimes blind to the true costs of contingent staffing, and the fundamental value of data in making informed, cost-effective decisions.
Traditionally, companies have leveraged a simple formula like P x Q, Price times Quantity to help manage contingent staffing spend. While this formula can support some business decisions about this hefty investment, it is challenging to really affect change to the overall category. When considering the price, it can be challenging to lower price as many companies work off previously negotiated rates, leaving little room for adjustments.
Another go-to tactic to manage costs is to decrease the quantity, which can also be tricky. In today’s climate, it is challenging to fill key or skilled positions. When the right individuals are in place, managers want to retain their resources.
Sourcing workers outside the company has become a costly but necessary business practice. How can you continue to meet current and future workforce needs with contingent workers while effectively managing costs? Many are finding workforce analytics presenting actual time worked a valuable data point for the business.
The Value of Data in Business
In the 21st century, data is gold. The speed and accuracy of decision-making relies on information systems. That’s why companies with more sophisticated abilities can simply out-compete the remainder.
Business success requires a clear understanding of trends and patterns. Technology can aid in quickly identifying statistically relevant findings. The quality of data—and how you use it—works like food or fuel to push your business to new heights.
Keeping that same energy, data analytics can provide a wealth of information about your contingent workforce suppliers. For example, you will understand invoice accuracy by confirming the time billed was actually worked. In addition, analytics can reveal compliance risks in your environment. At the speed of digital, tools that automate the collection of work effort data help you measure the performance of suppliers—and how they meet your business needs.
Data-Driven Culture and its Impact on Decision Making
A data-driven culture is one that embraces the use of information to drive smarter decisions and faster growth.
Choices based on empirical evidence rather than mere assumptions make it easier to move forward with confidence. Data empowers leaders to implement rational actions for the organization—even more so with the help of analytics tools like Sapience that help businesses achieve greater value from their contingent workforce spend.
Data is recognized as such a critical component in the day-to-day operations. In fact, there have been many conversations encouraging companies to treat their data like a product. Last year, representatives from McKinsey, addressed this topic in “How to unlock the full value of data? Manage it like a product.”
As you consider where your company is on the data-driven culture spectrum, positioning data as a product could be worth considering. As highlighted in the article, there are some similarities between data and consumer products such as customization, regular enhancements, production efficiency. Think of the standardization, speed and efficiency that can only improve processes currently in place. In an area like managing your suppliers, a strategic approach with data as the backbone of the business model, you can only expect a deeper connection to expectations with all internal and external stakeholders.
How to Use Data in Your Contingent Workforce Program
How does this data-driven approach translate to managing contingent workforce spend? Data on performance and cost provide the cues to make smarter choices. For instance, analytics technology can tell you which suppliers are providing accurate timecards. Armed with this knowledge, you’re able to hold your suppliers accountable.
It’s about more than just price times quantity. You can derive data from multiple sources to reveal other variables routinely overlooked to manage external labor spend. A supplier may not provide enough quantity or quality of data, it’s crucial to have your own methods and tools.
Using a platform that’s able to analyze and improve your contingent workforce program will boost your overall efforts. For example, Sapience transparenSEE shows you hours worked. Those being asked to approve and pay supplier invoices can know precisely what’s going on with your contingent workforce and make informed decisions on your suppliers.
Increase the Value of Data with Sapience transparenSEE
In an automated, secure, seamless, and unbiased way, Sapience will collect and provide accurate data as the definitive source to validate actual worktime for both at home and at office workers. Instantly stop paying your external labor suppliers based on the existing self-reported approach and start paying based on actual time worked. The result … save at least 30% of your external labor costs.
Capital markets are tightening and cost management is increasingly important. Price times quantity isn’t enough to move the needle on your contingent workforce spend. The right data collection, analytics, and insights platform enables leaders like you to effectively close the three-way match gap.
For those leading procurement efforts or responsible for approving costly vendor invoices each month, seeing your business dashboard that matches the purchase order, services received, and supplier’s invoice eliminates fraud, saves money, and maintains accurate records for an audit trail.
Easily integrate Sapience transparenSEE into your existing eco-system and transform the value of data in your business. Are you ready to see your business from a different point of view? If so, request your free demo today.
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