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:
For every 300 or more applicants, only five will be interviewed and only one will be hired. Increasing levels of unemployment are associated with increasing levels of passive application, resulting in a sea of uninterested and uninvested candidates. Implementing the best sourcing strategies in recruitment is an integral part of acquiring top talent.> Read More
The job market has undergone significant changes over the past two years. In 2020, the employment rate soared from 4% to 14.7%. According to reports by the Bureau of Labor Statistics and University of Minnesota, roughly 20.6 million Americans lost their jobs. Some businesses switched gear by leveraging contract workers, filling cracks in the foundation without bearing the expense of a full-time employee. Contract workers provided much needed flexibility and access to a diverse set of skills and alternative employment conditions.> Read More
Most HR departments and recruiters are familiar with the terms negligent hiring or negligence in employment. They are part of the reason why companies utilize lengthy background checks and interviews as part of their hiring process. Understanding what negligent hiring constitutes and how it can negatively affect your business is key to its prevention.> Read More