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Contingent Labor Leakage Estimator

Estimate recoverable savings from contingent labor controls across rate governance, markups, time approvals, and offboarding.

This tool is educational and operational. It is not legal, engineering, or financial advice.

Processed in-browser. Nothing is stored.

Inputs

Optional. Used in the memo output.

$

Use total contingent labor spend for the last 12 months.

%

Percent of spend covered by your controls (intake, rate card, time approval, offboarding).

%

Estimated avoidable or recoverable percent of in-scope spend due to weak controls or compliance gaps.

%

Conservative leakage rate after controls are installed.

Leakage category shares

%
%
%
%
$

Process, staffing, or tooling cost to implement and run controls.

Results

Enter inputs and click Generate.

Assumptions

  • This is an estimate. Validate with timecard and invoice samples from your top staffing vendors.
  • Leakage rate is applied only to in-scope spend.
  • Category breakdown is for transparency and does not change total savings.
  • Payback is implementation cost divided by monthly savings.

How to use

  1. Enter contingent labor spend and leakage assumptions using conservative estimates.
  2. Review the savings breakdown and adjust category shares if needed.
  3. Copy or download the memo to align Finance, HR, and Procurement.
  4. Validate results with timecard and invoice samples quarterly.

What results mean

Estimated annual recoverable savings is the leakage gap on in-scope spend after controls are installed.

Estimated monthly recoverable savings is the annual savings divided by 12 for budgeting and payback.

Payback period compares one-time implementation cost to monthly savings when provided.

Common pitfalls

  • Using leakage estimates that are not grounded in timecard samples.
  • Allowing in-scope spend percent to drift without enforcement.
  • Not tracking recovered value after disputes and offboarding sweeps.

Definitions

In-scope spend is the portion of contingent labor spend covered by intake, rate, time approval, and offboarding controls.

Leakage rate is the avoidable or recoverable portion of in-scope spend due to weak controls or compliance gaps.

Leakage gap is the improvement from current to target leakage rate after controls are in place.

Change log

v1.0 (2026-01): Latest release