I n the current landscape, contingent labor accounts for approximately 20% of the average enterprise’s total workforce, and this percentage is expected to increase to 50% or more by 2019.

Enterprises are finding themselves caught in the middle of a “gig economy” whether they like it or not, and are increasingly relying on non-employee talent to get work done. However, it takes many technologies, solutions and service providers to effectively source, onboard, manage and offboard these contingent workers. That is where a talent ecosystem comes in. But is your organization’s talent ecosystem putting you in a position to succeed?

According to industry think tank Spend Matters, a talent ecosystem is “a community of platform users, services providers, solution providers, software developers and even other systems/platforms that are digitally connected across a given platform for the purpose of creating new value for all of the members of the community.”

While this is the ideal, the reality is many enterprise organizations fall short. They find themselves hindered by disconnects between the various tools and providers associated with each of the tasks required to find, hire and manage non-employee workers. The result? Operational inefficiencies that add up to missed opportunities, wasted spend, liability risks, and ongoing frustration. No one wants to end up here. The good news is this is a trap you can escape.

The solution is a true talent ecosystem where all the elements work together in a way that serves as an extension of your contingent labor processes. Simply put, each contributes something different and valuable to the talent management equation. A talent ecosystem provides the one-stop shop for everything you need to bring on and manage the most fitting talent for the task at hand, not to mention faster and more cost-effectively. A talent ecosystem lets your company take advantage of the best resources, skills and approaches enabled by multiple participants and technologies—in an effective, streamlined way.

According to Christopher Dwyer, Research Director at Ardent Partners, this ecosystem approach revolves around core systems complemented by peripheral platforms. Dwyer places vendor management systems (VMSs) at the heart of this ecosystem because of their ability to enable a wide range of capabilities, with peripheral talent management solutions and services surrounding the VMS—covering talent pools, screening/verification technology, video interviewing, workforce analytics, payrolling and more.

What are you waiting for? Get out there and start assessing VMS providers to determine which one will best serve as the heart of your talent ecosystem. To learn more about the importance of creating a talent ecosystem, download the IQN Key Insight eBook: “Why a Contingent Workforce Ecosystem is a Must for Effective Talent Management.”

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