The conversion ratios of contingent to traditional employees are a key metric in managing your workforce. It demonstrates that contingent workers can be a source of hiring full-time staff. In some cases, this is an underutilized source of getting talent on board. As such, positive engagement of workers can result in longer term relationships. In addition, through promoting more conversions, buyers can often reduce the total wage bill and better support hiring challenges HR might be facing for its employees.
Each year, we ask large (1,000-plus employees) companies: “Thinking back over the last year, what percent of agency temporary workers were converted to traditional employees, either during their assignment or right after the end of their assignment?” The median temp-to-perm conversion ratio among large contingent workforce buyers (1,000-plus internal full-time equivalents) was 10% for North American companies, 8% for Asia Pacific companies and 5% for European companies.