So you probably have a specific number of independent contractors, consultants and agency employees within your organization. You also probably have not really given much thought around what percentage of your total population these contractors represent. The reason this is important is because this percentage actually impacts the organization’s ability to scale and respond to economic fluctuations and M&A activity.
Lower percentages of contractors means that in an economic downturn, the organization’s ability to quickly cut costs is hampered. Alternatively, in high growth scenarios, employers which utilize more contractors have an ability to scale upwards more quickly.
This obviously comes at a cost – the more contractors you have, the more it costs as these are usually higher cost workers (due to fees paid). There is probably an optimal contractor fill rate somewhere between 5-25% depending on how susceptible your organization is to growth fluctuations.
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[…] HR Metrics: Contractor fill rates Article Series HR Metrics: Offer Accept Rate HR Metrics: Quality of Hire HR Metrics: Competency fill rates HR Metrics: External recruitment rate HR Metrics: Contractor fill rates So you probably have a specific number of independent contractors, consultants and agency employees within your organization…). There is probably an optimal contractor fill rate somewhere between 5-25% depending on how susceptible your organization is to growth fluctuations. Systematic HR – Wednesday, February 11, 2009 READ MORE […]