A s discussed in the first installment of our “CWM in Financial Services” blog series, Financial Services organizations face a wide range of external regulations. But they also face strict internal governance. From the boardroom to the server room, every employee and business unit must meet the demand for visibility and accountability. Yet nowhere, perhaps, is compliance and governance more imperative than when dealing with third-party vendors and employees.
Third-Party Demand…and Risk
According to PricewaterhouseCoopers in Significant Others: How Financial Firms Can Manage Third-Party Risks, “As the use of third parties has grown, so have the number and severity of publicized security breaches, compliance issues, and service interruptions traceable to them. Boards of directors are increasingly worried about the number and type of activities their firms outsource and how well their firms manage the risks arising from these third-party relationships.”
Not using third parties, however, isn’t an option. Financial Services institutions rely on contingent labor to meet myriad business objectives—from sourcing the right skillsets to reducing costs to building a more flexible, agile and highly performing workforce.
Boosting Contingent Worker Value through Controls
To grow this value while reducing risk, you must implement critical controls that ensure corporate governance, while sourcing and engaging top talent. These controls and processes include:
- Centralized contingent workforce management (CWM) processes. Maintain a central hub for all CWM actions to ensure end-to-end visibility.
- Automated workflows. Manual systems can’t be trusted with so much at stake. Set automated actions and alerts for tenure limits, end of contract, spend thresholds, audit trails and more.
- Online contract management. Access agreements, SLAs and more in a central digital portal.
- Talent performance evaluations, KPIs and SLAs. Remember the adage, “If you can’t measure it, you can’t manage it”? Use templated measurement tools to evaluate third-party talent and ensure on-time, on-budget quality work.
- Purpose-built onboarding controls. Manage each step of the onboarding process with tools to search for talent, evaluate credentials, vet candidates, select the right fit, and streamline the procurement process, all with the auditability to meet compliance.
- Compliance-friendly offboarding controls. Offboard contingent labor and ensure compliance with defined workflows around retrieving badges, prohibiting system access, and keeping your facilities and data secure.
- Cost-control measures. Reduce costs and optimize expenses with capabilities like bill-rate benchmarking, rate-card enforcement, discount schedules, supplier aggregation and rationalization, competitive bid enforcement, automated workflow approvals, and a “smart” value calculator.
- Mobile functionality. Attract top talent and stay connected with mobile functionality that provides a strong user experience and powerful backend data.
The right CWM controls give Financial Services firms the information and organization necessary to use contingent labor with confidence. Implementing these processes can lower risk, achieve tighter compliance, enhance auditability, and ensure regulatory alignment.
And comprehensive CWM delivers more than risk management. By streamlining the end-to-end contingent labor lifecycle, Financial Services institutions can attract and keep the best talent. In an environment driven by mission-critical skillsets and timelines, the value of a great hire, managed with precision control, is almost limitless.
Interested in learning more about how to get control of your contingent workforce? Check out the infographic.