A proven outcome resulting from comprehensively managing your entire contingent workforce, including your independent contractors, is a sizeable and measurable reduction in costs.
At a high level, a lack of visibility of your contingent workforce headcount and services procurement spend can translate into some significant challenges for an organization. To name just a few:
A thorough analysis of your total spend and vendor base, serves as a baseline to optimize current spend and identify savings opportunities. Managing the number of service providers and staffing vendors you deal with is the first step to enhancing your buying power. By consolidating your services procurement activities between a handful of best-of-breed vendors, you can more effectively negotiate margins, rate and long term (volume) discounts.
In addition, you can create a sense of partnership among your preferred suppliers and more effectively share information to support your sourcing objectives. In the medium to long-term, creating healthy competition within this pool of quality vendors will help drive down costs and simplify the management of your procure-to-pay process.
Perhaps the greatest challenge faced by most organizations using various forms of contingent workers is properly accounting these individual within your organization. Why? Because these resources are often sourced and retained directly by hiring managers; rogue hiring and spending that escapes traditional accounting and control.
Not only does the time-to-fill stretch out far beyond the acceptable norm, but the entire procure-to-pay process, from “procure-to-pay ” as the expression goes, becomes bogged down and convoluted.
Rogue recruitment and spend is by definition highly inefficient since hiring managers are generally venturing into unfamiliar territory. They are subject to information asymmetry, a lack of market information and often hire or pay for human capital in excess of 40% above competitive market rates.
Hiring managers are not to blame. Yet, how could a vehicle with real, historical and strategic information help them make more informed decisions? This all comes together with the help of a well planned workforce management solution. Furthermore, beyond the hiring decision, a poorly managed contingent workforce, is prone to costly (double) time sheet data entry, fraud and reporting errors, on top of a slow and cumbersome recruitment process. This is the kind of marketplace chaos that your organization can convert into tangible savings opportunities.
Read this case study and learn how we helped save 23%
Our solution included:
A significant shift in the way companies are hiring their workforce is currently taking place. Businesses are moving away from an office full of traditional full-time employees and a significant growth in contingent workers has been seen across almost all industries.
So what is a contingent worker? The contingent workforce is made up of freelancers, independent contractors, consultants and pretty much anyone who is employed by your company on a non-permanent basis. These are workers who have been hired to complete a specific project.> Read More
ProcureCon Canada 2018 is only a week away, and we’re excited to be participating this year as a corporate sponsor of the conference. ProcureCon, April 16-18 at the Hyatt Regency Toronto, is a tremendous opportunity to learn what’s new and innovative for procurement, and meet with professionals involved in strategic corporate procurement, purchasing & sourcing management.> Read More
To a lot of businesses, the essential service provided by procurement feels complex, cumbersome, and expenses associated to it can make it costly.
To make sure your company’s procurement function is optimized for decreasing effort, cost and risk, you need to improve your approach to your procurement activities and processes.Doing this will ensure you work out the best solutions for your company’s unique needs; making sure you always pay the right price and you don’t miss vital steps in the procedure.> Read More