Management Reports are the key to improving Contingent/Temporary Labor Productivity
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See how you can use on-site hourly data to improve your ROI.
The primary reason for collecting time and attendance information is to improve labor accountability and productivity. You want to get the best Return on Investment possible for your labor dollar.
Just collecting the on-site hours is merely the first step. The biggest return occurs when you use management reports to clearly identify areas where improvements need to be made. At the detail level, TempChecker reports permit you to precisely compare a temporary employee on-site hours to a Staffing Agency’s “invoiced” hours. Additionally the full range of reports provided, permit managers to consistently monitor labor hour trends throughout your company over time.
To see a brief video describing how this is done by Highland Industries, a company with three different facilities and three different staffing providers, please click here.
Consequences of using an existing Time and Attendance system to monitor Contract Workers
- Permanent employee time and attendance systems are comprehensive and fully integrated into existing enterprise systems such as payroll, overtime, vacation, benefits,401K, medical, etc. Obviously that type of T&A system is designed specifically to support permanent employees. They are not focused on providing the information necessary to monitor contract worker hours and improve Contract Labor productivity.
- Provide routine reports that permit Managers to objectively and exactly compare actual on‐site contract worker hours to the Staffing Agency’s “invoiced” hours. (Big potential $ savings.)
- Permit the Managers to easily monitor the actual contract hours worked in specific cost centers or departments. (Permits Managers to assign contract labor costs down to cost center where they are used.)
- Permit the Managers to identify “missed” punches, and then oversee how the Agency “fixes” the situation. Permanent systems do let you monitor this situation and keep a permanent record of these fixes over time and by specific individual and Agency.(Big thorny $ issue. Staffing Agencies want to sell hours.)
- Permit senior Managers to uniquely monitor and track and compare contract labor usage over time by facility and by providing Agency. (Clarity into the use of contract labor can be a major benefit.)
- Permit Managers to easily measure non‐productive time, e.g., elapsed time between facility arrivals/departures and work within the cost center. They don’t permit Managers to monitor breaks such as lunch, appointments, other. (Another potential big $ saving.)
- Make it easy for Managers to view a variety of contract labor reports on any computer, anytime, anywhere. (What good is data if it can’t be used by Managers to improve productivity?)
- Make it easy or inexpensive to create new reports specifically focused on improving Contract Labor productivity. (Each company has their own metrics and sometimes they change.)
- Bottom Line – Relying solely on permanent employee T&A systems does not provide the rigor necessary to effectively manage contract labor productivity.
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TempCheckeris a web based service (hardware and software) that records, stores, and reports information independent from the existing T&A systems. However, the collected information in TempChecker can easily be formatted to fit smoothly into a company’s unique management reports or those provided by the existing T&A system.
Further benefits include: - It is dramatically less expensive to purchase than modifying the existing permanent employee T&A system.
- With TempChecker, items 1.a. through 1.g., are routine and exceptionally cost effective.
- The effort required by the User to set‐up, maintain, and run TempChecker is also dramatically less.
- There is absolutely no possibility for contract labor to contaminate all those ancillary enterprise systems that are directly tied to the permanent employee time and attendance system.
For example, they do not:
On the other Hand – "Don’t offer a problem without a solution!"
Contract Labor Usage is Surging
As we slowly make our way of this economic down turn, companies of all types, big and small, are using more contract workers. They fall under a larger category called Contingent Labor. In addition to Contact Workers, it also includes the greater contract workforce, e.g., independent contractors, statement of work (SOW) hires, and service hires.
While the value of this type of labor is readily accepted, many companies have difficulty administering and then allocating the cost of their contribution accurately. All too commonly:
- The prices paid for contract labor are rarely verified.
- Temp usage and costs are rarely attributed directly to the cost of goods sold.
- There is limited monitoring of actual usage versus the contact labor budget.
- There is almost no ability to monitor contract worker usage, in a consistent manner, company wide.
- There are few ways to effectively compare prices from competing staffing agencies.
Bottom Line – Most companies use contingent labor, but they don’t effectively monitor their usage.
If nothing else, this downturn has reinforced the need effectively monitor all our expenses. Existing systems make if fairly easy to do that for most cost elements, with at least one exception being contingent labor.
Oversight-Inc’s TempChecker, www.TempChecker.net, offers a solution. It is specifically focused on contract workers, not your permanent employees. Check it out!