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Supplier Management

(This is an in-depth, technical document for serious purchasers of recruitment solutions who wish to manage their suppliers in an effective and cost-efficient manner)

Measuring

To successfully manage suppliers and resource management functions, a system needs to be able to capture and report on service levels according to an agreed metrics. We recommend a monthly reporting system which should be targeted at the business owner of the overall service. The following areas of performance and finance are key to this success:

  • Break-down of contractor cost (average, new, extension, duration)
  • Break-down of permanent fees (average, high, low)
  • The Service provider (HR / Internal Recruitment)
  • Supplying agencies
  • Line management

In addition to costs, the three major interfacing parties (Supplier, Resource Centre & Line Manager) must be measured to force a service ethos and performance target achievement objective.

SOFTWARE NOTE: Barclay Anderson originally ran it’s on-site management using standard office software to capture and display reports in the format required. The tables shown in this page were originally generated using Microsoft Excel. Copies of client’s use, standard Requirement, CV, Interview and Placement log spreadsheets are available from us. Please contact us for a sample.

Responsibilities

  • The Managed service provider is responsible for reactive actions, negotiating ability, escalating time-bound deliverables and customer satisfaction.
  • Supplying Agencies (which may include the service provider) are responsible for resourcing individuals at the right price and negotiating acceptable rates. Additionally, they must work to time-bound actions and respond to requests for action.
  • Line management are responsible for identifying requirements and vacancies as early as feasible, working to realistic time constraints and responding to the service provider.

Data Capture requirement

As a minimum, the following data is required to be accurately captured:

A) Requirements
    1. Date Released
    2. Line Manager
    3. Skill type required
    4. Perm / Contract
    5. Duration published (if contract)
    6. Interview date target
    7. Price / Salary guide
    8. Ideal start date
    9. Latest start date
    10. Skills and Role description
    11. Requirement status (Live, Filled, Killed, on-going)

B) CVs received

    1. Date received (& date submitted to line manager should be the same)
    2. Submitted price / salary
    3. Notice period (or availability if contractor)
    4. Submitting agency
    5. Date feedback received from manager

C) Interviews

    1. Date requested
    2. Date conducted
    3. Result type (there are multiple potential outcomes from an interview request which may be used in measuring suppliers, not just a reject or placed!)

D) Successful placements

    1. Negotiated price / Salary
    2. Agreed start date
    3. Actual start date
    4. Duration (if perm)

E) Contract Extensions (not applicable for permanent placements)

    1. Request date
    2. Current contract end date
    3. Contract extension duration request
    4. Agreement date
    5. Duration
    6. Price

Reporting

Important note: Many of the reports shown below are more applicable for the IT Contract Recruitment. It is important to take the ideas shown and use them as templates for methods of recruitment at your organisation.

A monthly report should be targeted at a senior business owner responsible for the service and should be reviewed with the Resource Centre manager on a monthly or quarterly basis. Four topic headings may be identified.

1. Contract Recruitment Summary report example

Enables a high level analysis of the overall contract solution (if applicable for your site), identifying trends and costs. Ideal for a busy business owner.

 

COSTS

Number of contract staff on billing

Itemise numbers per division or project

Overall average daily cost

Likely total monthly cost at 92% billing rate

Number of new placements this month

Average new cost this month

Average new cost last month

Average Top quartile cost

Average Lowest quartile cost

Average CV cost this month

Average CV cost last 12 months

Total number of contract extensions

Average % increase this month

Average % increase last 12 months

Number of contract stops this month

Total Terminations this month

Instant

4 weeks

Total Terminations last 12 months

Instant

4 weeks

ACTIVITY

Number of new requirements this month

12 Monthly average

Number of CVs received this month

12 Monthly average

Number of Interviews this month

12 Monthly average

Numbers of placements concluded

12 Monthly average

Numbers of extensions concluded

12 Monthly average

 

2. Recruitment type analysis

Type Numbers Average duration Average price

 

Enables an overview of the numbers of types of individuals currently on contract to the company. May also be used to determine the numbers of permanent recruits successfully placed in any month. Also allows decisions to be made for other permanent recruitment activity and can be used to view any particular “over-use” of skills from the contract market.

A set of known skill sets are required to be placed into the system for analysis. The following example may be suffice in the first instance:

    • Senior Manager / Consultant
    • Project Manager, Development
    • Business Analyst
    • Systems Analyst
    • Technical Author
    • Systems Architect
    • Technical Architect
    • Office Planning Manager
    • Project / Programme Planner
    • Test Team Leader
    • Test Analyst
    • Project Manager, Infrastructure
    • Infrastructure Rollout Project Manager
    • Infrastructure Rollout technician
    • Mainframe Analyst / Developer
    • Mainframe Developer
    • Mainframe DBA
    • Mainframe specialist consultant
    • Unix Analyst / Developer
    • Unix Developer
    • Unix DBA
    • Unix specialist consultant
    • PC Development Team Leader
    • PC Analyst / Developer
    • PC Developer
    • Lotus Notes Developer
    • Lotus Notes Senior Developer
    • ERP Database Developer
    • ERP Database Specialist
    • User Training Manager
    • User Trainer
    • PC Support Analyst
    • Other

3. Suppliers

Some notable recruitment clients build a solution to force agencies to submit a maximum of 3 CVs for any requirement. Constraints are immediately placed in the system because at the last minute, a fourth CV may be found which is of particular use to the client. A crazy situation can arise which actually excludes the best candidate for the job.

Rather than placing constraints on numbers, it is best to allow agencies to self-manage themselves by having all their statistics published back to them at the end of the month.

Agencies which over-send CVs will be spotted immediately – normally this will be suffice in alerting them to the over-use.

A sample follows for a complete quarter:

Supplier performance

By Month

FIRST QUARTER 1999

Jan 99

CV to

Interview to

Agency

CVs

Interviews

Placed

Interview

Placement

Numbers

A

36

10

5

28%

50%

14

B

35

10

3

29%

30%

15

C

10

1

0

10%

0%

6

D

10

4

0

40%

0%

9

F

16

8

1

50%

13%

14

2nd tier suppliers

13

2

1

15%

50%

-

Totals/Averages

120

35

10

29%

29%

58

Feb 99

CV to

Interview to

Agency

CVs

Interviews

Placed

Interview

Placement

Numbers

A

26

5

1

19%

20%

17

B

52

5

3

10%

60%

17

C

19

3

0

16%

0%

5

D

18

2

1

11%

50%

9

F

15

5

0

33%

0%

14

2nd tier suppliers

10

2

1

20%

50%

-

Totals/Averages

140

22

6

16%

27%

62

Mar 99

CV to

Interview to

Agency

CVs

Interviews

Placed

Interview

Placement

Numbers

A

20

4

1

20%

25%

18

B

40

6

2

15%

33%

19

C

6

1

1

17%

100%

3

D

15

3

1

20%

33%

9

F

43

8

1

19%

13%

15

2nd tier suppliers

7

3

1

43%

33%

18

Totals/Averages

131

25

7

19%

28%

82

Suppliers enjoy this instant feedback at the end of the month and it suits the business owner too.

 

Sample interview result Service Metrics

Additionally, it is suggested that the outcome of interviews are measured:

Agency

Blowout

Cancelled

Declined

I/View

No show

Placed

Reject

With- drew

Total

A

0

1

5

3

0

13

20

3

46

B

0

5

5

3

3

19

30

11

77

C

0

1

2

0

0

2

7

8

20

D

1

6

7

3

0

12

35

4

68

1

13

19

9

3

46

92

26

211

 

4. Highs & Lows

Rather than reporting on all statistical information, the system may report particular highs and specific low areas of performance

Suggested format:

Top five usage cost centres / projects:

1

2

3

4

5

Highest cost individual contract staff

1

2

3

4

5

Lowest performing agency:

Number of offered / declined (quarter)

Lowest number of contract staff

Time to respond to Service Centre CVs

Best performing line manager

Worst performing line manager

Contract start measurement (This month)

Days variance – ideal to actual start date

Days variance – ideal to latest start date

Contract start measurement (12 months)

Days variance – Ideal to actual start date

Days variance – ideal to latest start date

 

Conclusion

Many client companies don’t measure anything. To them, calculating which supplier or line manager is performing is impossible. Centralise your recruitment and measure! It could be costing you more than you think.

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