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.
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When it comes to comparing the pros and cons of working with a managed service provider (MSP) or relying on an in-house program, there are numerous things to consider. First, it is important to keep in mind that there is no one-size-fits-all solution. Businesses are complex organizations with different priorities. To better understand the specific needs of your business, it is important to thoroughly review your internal processes. Alternatively, you can include a neutral subject matter expert as a third party to gain additional insights. To help you compare your options, we have listed...
> Read MoreAs a result of the COVID-19 Pandemic, many businesses had to rethink their approach to workforce management in 2020. The shifting regulatory landscape, fluctuating demand, and unforeseeable market circumstances highlighted the importance of business flexibility and strategic workforce planning. Though many businesses lost revenue, some sectors, such as the staffing industry, managed to grow. Here are the top reasons implementing strategic workforce planning will be critical to success in 2021 and beyond:
> Read MoreWhen hiring professionals as independent contractors, there a few things to consider before signing the dotted line. Whether you are hiring for a short-term project or looking for a freelancer to assist your organization long-term, a poorly executed engagement and cause problems down the road. We have created an independent contractor vs employee checklist below to ensure you reduce the risk of hiring an independent contractor vs a temporary employee.
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