For the purposes of this Temporary Labour ITT guidance, I will not include the generic ITT instructions or evaluation criteria. Temporary labour is one of those big tasks to review but keep moving forward and it will become easier!
There are different models available such as Neutral vendor, master vendor or preferred supplier list but for this example, I am basing the tender on a framework.
For a bigger range of suppliers, it is advisable to set up a framework agreement with various lots. This can be split into different specialisms, i.e. admin clerical, finance, corporate services or one-stop shop that can provide services under all lots. You can choose to have several suppliers for each lot or just one supplier depending on the market and the confidence that the supplier has the ability to supply. If each lot has more than one supplier, a direct call off is not possible and you must conduct further competition with all of the suppliers within the lot chosen.
The agency should add value by helping an organisation reduce cost. They can do this by providing an end to end recruitment service. Work with HR to write an output specification i.e. you do not need to give instructions on how they should find suitable candidates but what you expect to receive as a service when a successful candidate is placed.
Cost Model- create a blank excel template with columns for the following:
(this is for the supplier to fill in, having a template means a consistent method for comparing bids)
- 1. Organisation hourly pay
- 2. Add WTR i.e. xx%
- 3. Add NI as a %
- 5. Net amount excluding VAT
This is a simple model- there are more complex versions- you can buy other cost model templates with explanatory notes [coming soon]
Temporary workers sometimes have the opportunity to transfer to permanent employment. If this happens you should pay the agreed fee.
|Number of weeks in assignment||Introduction Fee % of salary|
|13 weeks +|
By law, there are certain requirements. You can find out more at Gov.UK
Requirements to include in your temporary labour ITT:
- Prevention of non-compliant spend
- Candidate onboarding/ due diligence/checks
- Rate benchmarking
- E system/ back office function/ candidate portal for timesheets
- Reduce % of turnover or target
- Induction program
- Candidate quality
- Volume rebate
- MI reports
- KPI reports
- Fill Rate: important recruiting delivery process metric.
- Offer to Acceptance Ratio-This measure shows how productive your recruitment process is.
Time to Fill-Knowing the average time to hire to set expectations.
- Total Number of Placements, Average Placement Fee, and Total Number of Job Orders. This focus likely stems from
their volume-based business model.
Be aware of quantity versus quality
- Dedicated account manager
- Case study- how they propose to reduce cost & manage temporary labour
It’s necessary to balance recruiting costs with quality. In order to evaluate recruiting quality, organizations should assess quality aspects, including:
• Productivity: How long did it take them to get up to speed, compared to their peers or predecessor?
• Tenure: Did they stay at the company shorter or longer than average?
• Scale: Did they grow professionally and get promoted internally?
• Impact: What kind of value (or ROI) did they create for the company?
When your recruiting analytics look great, it’s easy to forget about one simple performance metric: satisfaction.
Is the hiring manager pleased? Did your candidates have a good recruiter experience? Is everyone happy?
For an Executive Search template, you can purchase an example [coming soon]
Conduct some spend analysis and try to interpret the data- request from HR information on:
Base rate using our pay scale structure Y/N AL- how many days does the temp have access to Spreadsheet to include price before WTR- <12 weeks +> 12 weeks Is NI standardised across the whole term or is this affected by the number of annual leave days Employers pension contribution how is this calculated as part of the fees? Expressed as a percentage Mark up before 12 weeks and after Nett charge