How do you reduce costs and increase efficiency no matter the type of company or small business you run? Vendor management is a complex series of tasks that require a careful touch and an extensive knowledge of contingent workforce solutions to better increase your bottom line no matter the season. Whether you’re trying to reduce the amount of time spent on payroll or want to bolster your workforce’s satisfaction rate, everyone stands to benefit from vendor management solutions. Look below as I list useful statistics about businesses in the U.S. and what you should know about basic workforce planning.
Independent Contractors
Self-employed people have reported a high job satisfaction in their fields of choice, with a recent survey finding that a mere 9% of independent contractors would change employment if given the choice. Around 66% of independent contractors work full-time and as much as 90% of firms will use freelance talent in everything from minor to major projects. Be it freelance or in-house talent, quality of hire is a number one factor in any business mindset.
Payroll Expenses
Payroll is required of all businesses at the end of every bi-weekly or monthly period, but many are still eluded by the most efficient and time-saving measures of calculating pay. One in four businesses who handle internal payroll report spending at least six hours per month crunching numbers. On the other hand, businesses that pay anywhere from 20% to 30% of their gross revenue in payroll expenses report doing well overall.
Job Satisfaction
One of the most important elements of any long-running business solution is the job satisfaction of its employees. A yearly study conducted by the SHRM (Society for Human Resource Management) found that compensation is the biggest driving factor for job satisfaction at 60%. Another survey found that 96% of job seekers found it important to work for companies that ’embraced transparency’ and were honest with their workforce. Satisfied employees are more likely to remain in the company for an extended period of time and cost less money down the road.
Hiring And Training
Every year U.S. employers are taking longer to fill vacant positions than ever before, rounding up to 25 working days on average even when third parties are assisting. Companies with 5,000 workers or more have an even longer hiring time at 58 days or more. Everything from benefits to taxes to equipment are factored into the cost of hiring an employee, on top of time spent on training and integration. Keeping these vendor management solutions and essential statistics in mind — how will you boost your company’s hiring, training and payroll efficiency?
