Magnit (formerly PRO Unlimited), an Integrated Workforce Management (IWM) Platform provider, released the results of a new commissioned study, “The Total Economic Impact™ (TEI) of Magnit Platform,” conducted by Forrester Consulting. The analysis found that an organization leveraging Magnit Platform to manage its contingent workforce saw a 366% return on investment over three years, $32.3 million in net present value over that same period, and a full investment payback in less than six months.
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“As the economic environment and difficult labor market keep cost-cutting at top of mind for businesses, making investments in new technology may seem to run counter to the goal—but Forrester’s analysis of Magnit’s significant ROI illustrates that couldn’t be further from the truth,” said Vidhya Srinivasan, chief marketing officer at Magnit. “Magnit’s integrated platform approach empowers leaders with the data and visibility they need to make strategic decisions in today’s high-pressure business landscape. Our end-to-end platform offers a robust return on investment, helping businesses save tens of millions on labor spending and management costs despite its relatively low cost.”
To perform its analysis, Forrester interviewed seven Magnit clients to develop a composite organization representative of those customers. The TEI study found that using Magnit’s platform and services for three years would save the composite company (which would manage 1,000 contingent workers per year):
- $20.5 million in supplier costs
- $11.2 million in payroll administration costs
- $5.3 million through statement-of-work adjustments
- $1.9 million in recruitment and full-time hiring expenses
- $1.3 million in contingent worker sourcing expenses
- $984,800 through adjustments to procurement and talent acquisition processes
In addition to the above financial factors, the study found that Magnit offered numerous “unquantified benefits,” the economic impacts of which were not considered in the study. Noted benefits in this category include improved compliance performance, reduced onboarding times, increased operational visibility, and better diversity, equity, and inclusion (DE&I) performance.
A senior vice president of talent acquisition interviewed for the study shared that the company’s partnership has been invaluable in today’s unprecedented labor market. “If we didn’t have [Magnit’s] knowledge and focus,” they said, “then I might not be here anymore.” A contingent workforce program director in the software sector noted that “[Magnit is] running circles around” other managed service providers (MSPs), indicating their admiration for the company’s “incredible, actionable insights.”
The seven interviewees highlighted the importance of Magnit’s “major differentiators” in the contingent workforce management market to the platform’s overall value to businesses. In addition to Magnit’s vendor management system (VMS), the analyst firm indicated that the vendor’s direct sourcing offering, real-time performance dashboards, rate and performance analytics capabilities, and strategic advisory services are particularly noteworthy features.
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