W ith financial services organizations needing more diverse skillsets than in the past, especially for entry-level positions, the industry is facing a skilled labor shortage. At the same time, tougher compliance regulations impose greater costs and risks. Although a challenging situation, it also offers an opportunity for businesses to develop innovative approaches to workforce services procurement solutions and management.
Reduce Risk with Automated Compliance Management
New regulations like Dodd-Frank and the Sarbanes-Oxley Act make compliance more difficult, and pose greater liability risks for both organizations and senior management. Contingent labor is a traditional way to meet workforce demand while cutting costs. But many financial services organizations are wary of the security risks posed by contingent workers who are not properly vetted prior to onboarding, or who retain access to facilities and information after offboarding.
Although these risks are significant, you can properly manage them with the right technology partner―who provides the combination of end-to-end visibility, stringent compliance controls and automation necessary to meet these challenges.
Centralized contingent workforce management is vital, along with the tools to ensure compliance with regulations, from contract requirements and tax rules to SOX. A vendor management system (VMS) can provide, for example, automated audit trails to support the strict record-keeping requirements of regulations like SOX, and offer better visibility for internal audits.
A VMS with the right automation and controls can also ensure worker classification compliance, removing a major risk of leveraging contingent labor. Decision management capabilities can guide services procurement staff through worker classification, and automatic alerts signal end-of-contract and tenure limits, ensuring compliance with contingent labor laws. You’ll have complete control throughout the talent lifecycle, from vetting and onboarding contingent workers to restricting access after their contracts expire.
Access the Best Contingent Workforce Talent
There’s plenty of talent out there, if you know where to look. A VMS platform can offer centralized access to proven suppliers, furnishing high-quality candidates, from call-center staff to highly skilled financial professionals.
Services procurement solutions allow you to quickly select the best talent sourcing strategies for your organization. Not only does this help financial organizations improve KPIs like time-to-fill and procure-to-pay, it also allows you to adapt your talent sourcing to changing market conditions.
Leverage Contingent Labor to Lower Costs
The high cost of financial services compliance makes cost cutting more important than ever. Critical VMS capabilities that empower you to win the war for talent include:
- Supplier aggregation and rationalization
- Rate card enforcement
- Competitive bidding enforcement
- Discount schedule
- Automated workflow approvals
Services Procurement Solutions That Get Results
With tightening regulations, talent shortages and fiercer competition, financial services hiring strategies have become more strategically important than ever before. Organizations need services procurement solutions that balance cost-cutting, compliance and innovation. Best-in-class VMS technology allows your organization to build a more competitive contingent workforce while slashing regulatory risk and burden.