Contingent workforce management (CWM) is all the rage these days. That’s evident from much of the industry news we hear regularly:
- The State of Contingent Workforce Management research study found that, over the next three years, the average contingent workforce will grow by nearly 30%
- 62% of enterprises perceive contingent labor as a vital component of their overall workforce
- 37% of companies surveyed stated they are planning to adopt a solution for managing their independent workers over the next 12-16 months
Betting on the Future: Businesses Seek To Expand Their Contingent Workforces
- 70% of organizations plan to grow their external workforce
- 38% of best-in-class organizations have formalized CWM program expansion plans
New Research Helps Program Managers Bring Critical Issues into Focus
- analytics and business intelligence: 73%
- talent engagement/management: 61%
- spend/supplier management: 57%
- collaboration with procurement and HR: 48%
- compliance management and risk mitigation: 44%
- only 51% of external labor and services spend is formally accounted for
- 47% of respondents report a lack of total contingent workforce visibility
- 51% of respondents feel pressure to drive cost savings
- 63% of respondents identified a need for top-tier talent and skillsets
5 Pillars of Focus for a Successful Contingent Workforce Management Program
- Analytics and business intelligence: Data is a key component of contingent workforce management. Collecting and analyzing data allows you to spot trends and irregularities. It also gives you visibility into spend, suppliers, performance, and more. Best-in-class organizations use real-time reporting, agile analytics, and deep-dive functionalities to manage their contingent workforce. In fact, 37% of best-in-class organizations use analytics and business intelligence tools to make decisions about their future use of contingent labor.
- Talent engagement/management: In most organizations, contingent labor touches multiple areas of the company. That includes IT, finance/accounting, administration, sales, and marketing. Moving forward, success will require new strategies and tactics for managing non-traditional talent. According to the 2014-2015 State of Contingent Workforce Management research study, the “talent” focus of CWM will increase over the next two years.
- Spend/supplier management: Eliminating rogue spend is just one way to realize cost savings. The bottom line is that a fragmented model will not cut the mustard. Organizations should seek to increase their effectiveness. Gaining control of your suppliers is the first step to sourcing the best contract talent at the best rates.
- Collaboration (HR, Procurement, etc.): Organizations that want to remain competitive will need to get all of their business functions operating cohesively. For example, HR and Procurement will need to work together to manage your extended workforce program.
- Compliance management and risk mitigation: Mitigating and managing risk are primary concerns when dealing with an extended labor force. To manage the inherent risks of a contingent labor force, organizations will need to address any shortcomings in existing internal processes and systems.