Last week the Contingent Workforce Strategies blog included a very interesting article: Peek Under the Hood: Why Talent Matters
If you missed it, here’s what you need to know:
- Access to talent use to be a key driver of VMS and MSP staffing decisions, but in recent years, cost control has become the dominating force behind these decisions.
- Contingent workers are an essential part of a company’s talent pipeline.
- Focusing solely on reducing the cost of contingent staffing has negative consequences on the quality of talent and organization will see.
- It is possible to SIMULTANEOUSLY reduce talent acquisition costs and improving talent acquisition.
Why this article matters to you.
If you’re tired of dealing with clients that want to focus on mark-up over service, you need to convince people that quality and service matter more than price–and that’s no easy task!
Intuitively, everyone knows the lowest priced product or service is never the best deal. But, when you’re an HR manager being measured on cost savings, it’s a lot easier to tell your boss that you negotiated a lower bill rate than to try and demonstrate a lower total cost of service.
So what can you do?
To sell to the price buyer, you have to convince someone in the organization (and it’s most likely not the typical staffing buyer) that lower price does not equal lower cost. You need data that proves:
- Higher performing workers produce more output and make fewer mistakes, which reduces labor cost as a percentage of sales.
- Putting quality over hourly bill rate, results in a more skilled contingent labor pool, which in turn reduces long-term hiring costs.
- Your firm’s recruiting and talent selection methods consistently result in higher performing contingent workers.
- You have successfully lowered staffing costs and improved candidate quality for other firms.