Our client, a leader in consumer products and retail, aimed to optimise bill rates. They sought better market alignment and cost reduction. To achieve this, the Pontoon Intelligence team conducted a detailed benchmarking analysis. We focused on finding discrepancies between bill rates and pay rates. Next, we established new rate cards for the client’s MSP programme. This aligned bill rates with the market value of required skill sets. As a result, we achieved $1.2 million in cost savings for our client.
The primary challenge was to accurately identify the differences between the bill rates (the amount charged to the client) and pay rates (the amount paid to the workers) for various roles within the client’s organisation.
To tackle the challenge, our Pontoon Intelligence team employed a systematic approach using a combination of public data, proprietary tools, and third-party analysis resources.
First, we gathered comprehensive data on pay rates and bill rates, focusing on roles and skills relevant to the client’s operations. Next, we performed a detailed benchmarking analysis. This involved comparing the client’s current rates with industry standards to identify gaps or discrepancies.
Based on the analysis, we developed new rate cards, which included recommended minimum and maximum rates for each job title. These rate cards were tailored to over 150 job profiles, taking into account different locations and skill requirements.
We implemented the new rate cards across the client’s MSP programme, ensuring that the bill rates were closely aligned with market values. This facilitated better supplier competition and engagement.
The implementation of the newly developed rate cards had a profound impact on the client’s operations:
