<img height="1" width="1" style="display:none;" alt="" src="https://dc.ads.linkedin.com/collect/?pid=22574&amp;fmt=gif">

Cost Management

02_hcm_vis_1_320x530-1.jpg

Gain Control of Your SPEND, REALIZE COST SAVINGS 

A proven outcome resulting from comprehensively managing your entire contingent workforce, including your independent contractors, is a sizeable and measurable reduction in costs.

Lack of Visibility and Poor Management

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:

  • Poor decision-making - Incorrect information can lead to bad decisions across multiple areas, including workforce rationalization.
  • Lack of forecasting - Last-minute scrambles to fill positions as demand fluctuates, leads to costlier talent sourcing decisions, to fill urgent unplanned needs.

  • Paying inconsistent or above fair market rates - It’s common to find organizations paying vastly different rates for the same talent category and level of resource, or paying above fair market rates.

  • Lack of visibility between your contingent workforce spend and your Statement of Work (SOW) spend - Spend often travels between these two sourcing channels. Companies who do not have full visibility into these categories of spend often overpay in the same classification of people.

Want to Manage your Costs Better?

Spend and Vendor Management - Contingent Workforce

What other areas frequently cause overspend and loss of cost control?

Spend and Vendor Management

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.

Control Rogue Spend and Recruitment

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.

The HCMWorks Blog

4 Ways to Survive a Skills Shortage in Your Industry

4 Ways to Survive a Skills Shortage in Your Industry

Skilled workers are the foundation of a company, but have you ever struggled to find the right employee? Don't worry if you have, you’re not alone. In fact, talent acquisition and a shortage in skilled workers is becoming a growing concern for many businesses.

According to ManpowerGroup’s latest Talent Shortage study for 2018, more employers than ever are struggling to fill open jobs. Forty-five per cent of the global business surveyed said that they can’t find the skilled workers they need, up from 40% in 2017 and the highest rate in over a decade. 

> Read More

How Technology and Communication Tools have Fueled the Gig Economy

How Technology and Communication Tools have Fueled the Gig Economy

Technology and communication tools have helped organizations make huge leaps in the past two decades, and now they are changing workforce behaviour. Ease of communication has allowed remote and contract workers to work on their own terms, increasing the size of this pool of employees.

Earlier this month the Bureau of Labor Statistics gave the first official reading of how many workers in the US rely on temporary, freelancing and contract work. The answer is a lot. 

> Read More

3 Tips to Create a Workplace Culture that Attracts Contingent Workers

3 Tips to Create a Workplace Culture that Attracts Contingent Workers

The contingent workforce - made up of freelancers, consultants and independent contractors - has rapidly become a significant part of today’s workforce. For that reason, it’s essential that companies create a workplace culture that attracts and engages contingent workers.

Employees are now seeking an enjoyable place to work, rather than looking solely at career development and remuneration. This has made employee engagement a key aspect for any company that wants to hire the best talent in their field. This is no different for the contingent workforce. 

> Read More