In putting together a “Vendor Score Card” you want to make sure the metrics tell the true story of who your key suppliers are and not only the ones with the highest volume of spend, head count etc. Also its very improtant to make sure that the metrics that vendors are being evaluated on create the right behaviors. In the very competitive staffing industry market, metrics being evaluated on motivate vendors to act in various ways.
Also these same metrics in agregate can give you a health check on your program’s sucess when measured against the original objectives that you had probably written into the SLA with your MSP provider.
So when building a score card ensure that you understand what the numbers spit out of the VMS are telling you so that you can make adjustments to your program when necessary to ensure your objectives are being met.
When building a vendor score card I like to use the 5 general topics of: Quantity, Quality, Time To, Customer Satisfaction, Compliance.
- Quantity – these are the pure numbers. how many requests, how many directly sourced independents, how many submissions, how many fills, by which vendors, by category, etc.
- Quality – these are the ratios of requests to hires, submissions to hires, avg contractor satisfaction ratings etc. when reviewing these metrics its important to understand and take into consideration the pure numbers that calculate the ratios. It may be awesome that a vendor has a 100% rating but if it came with only 1 hire you may want to take it with a grain of salt.
- Time To Metrics – These are the time to acknowledgement of request, time to first submission, time to interview, time to hire. These metrics help to measure vendors “attentiveness” to the program as well as gives you a prospective of hard to fill roles or where bottlenecks lie in the process.
- Customer Satisfaction – This is the more qualitative section of the score card. In programs that we run I like to send quick surveys out to hiring managers and contractors at various intervals in the process to measure customer satisfaction of the staffing vendors but also of the program itself. This helps gage the clients and contractors experience through the hiring, onboarding, billing/payment etc process. In the end customer satsifaction is often key metric that solidifies the story that the quantitative numbers are telling.
- Program Compliance – This mesaures things like compliance to rate sheets, paperwork i.e. contracts, rights of authorship, worker classification documentation on file etc. it also measures compliance with deadlines for timesheet submissions, invoice approvals, rebates, etc. Vendors that pay attention to the details around compliance in general will help you complete transactions more efficiently, reduce costs, and ensure that you reduce your risk of co-employment.
Although it looks like alot of things to worry about try to keep it simple by organizing the data by the 5 general topics. You may even choose to simplify it into the first 3 topics and phase the others in at a later date.
Once designed, the key to implementing a sucessful score card program (and a sucessful program in general) is communication with your vendors.
Vendors need to know what they are going to be measured on, the frequency of measurement, the repercussions of poor scores, etc. I also like involving key vendors in the development of the score card pror to implementing it. The more you allow your vendors to be part of the process, the more they will buy into the program and behave in the way you want them to.