NP Group Blog

Do You Know What Value Your Contingent Labour Workforce Brings?

Posted by Jason Collins on Oct 13, 2017 11:52:00 AM
Jason Collins

Everyone is aware of the importance of a contingent labour workforce…or are they? With the global trend of businesses engaging significant volumes of contractors and temporary workers, to create a flexible staffing environment to increase their workforce and productivity, do we really know the true value that they bring?

åToday, up to 35% of the workforce is actually made up of contingent (contractors, temps, consultants and others) workers. There’s a real disparity however between following the trend and having full visibility of all non-permanent workers. On multiple occasions I have been speaking to individuals and organisations in my network that have no real way of being able to honestly assess the cost and benefit that their contingent labour workforce brings. Furthermore, and perhaps more worrying, organisations find it increasing difficult to track the exact number of temporary workers they have at any one time. This then brings organisational inefficiencies, higher workforce costs and poor decision-making, based on incorrect assumptions about the true makeup of their workforce.

 

This Can Be For a Number of Reasons…

1. Lack Of Centralised Management

It is common place for organisations to hand over responsibility for recruiting contingent workers to the hiring managers themselves, as recruitment can be so frequent, extensive and repetitive.  Handing over hiring responsibility has multiple benefits, but it also means the organisation has no centralised way to control how many contingent workers are hired, where they are in the business, or how much they are paid. This leads to a lack of consistency, an increase in agency spend and an inability to accurately report the number of employees your organisation has. This can also have a negative impact on your candidate experience. The temporary recruitment process becomes diluted, with each hiring manager following a different process for talent acquisition, some above the organisations standard, whilst some fall short.

 

2. No Objective Assessment Of The Programmes And Projects That Contingent Workers Are Involved In

Without being able to objectively and holistically assess the impact your contingent labour workforce has had on a specific programme or project, the metrics are meaningless. Hiring managers will often inflate results to ensure they get funding to hire further temps in order to complete a short-term project. But is that level of reporting really developing your business and providing true measurement of analytics, that supports you in determining how well-managed your contingent labour workforce is? This can in turn inflate your temporary recruitment, meaning that your workforce management falls as hiring managers, HR and Procurement become stretched even further. 

 

3. Too Many Moving Parts To Gain A Birds-Eye View

When organisations embark on the journey to better contingent workforce management, they may first start to outsource payroll, then establish a Preferred Supplier List for sourcing contractors and finally engage an employer branding agency. Negotiating all of these moving parts makes it hard to keep a handle on contract worker performance, tenure and risk, meaning you only gain a blinkered view on your complete temporary staffing population. Contingent management solutions can help take away this pain, consolidating your supplier landscape making life easier for you and your organisation.

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The temporary staffing phenomena is set to continue to expand and be evermore prominent across all types of industries, business sectors and organisations. That’s why it’s so important to be able to assess the value or your contingent workforce now. With the stakes (in terms of money and resource spent on finding contingent workers) so high, the current barriers to gaining true insight into the value of a contingent workforce just aren’t acceptable.

One of the best ways to manage temporary staffing talent acquisition and management, is through Contingent Workforce Solutions. This means outsourcing part of all of the contingent labour workforce recruitment and management process to your talent solutions partner, a dedicated, tailored and specialised solution, bespoke to your organisation. This is essentially a set of talent solutions which outsources recruitment to a specialist in your field.

In turn, this means that you can consolidate your contingent labour engagement, leaving just a single dedicated point of contact to deal with your entire contingent workforce.  You will also be able to access the data and analytics you need to show the true value of your contingent workforce. By data mining across the entire organisation’s contractor and temporary workforce, your MSP partner can uncover and report important trends, benchmark daily and hourly rates and identify cost-saving opportunities with your existing agencies, to make sure you are getting value for money and the maximum ROI from the day a contingent worker enters your organisation.

Without knowing the value of your contingent workforce, you are essentially running a talent acquisition process in the dark – not knowing if the rates you are paying are correct, if you’re getting return for your investment, or if your workers are being hired within legal boundaries. The consequences of not getting it right are vast. Do you want to continue to take this risk, or are staffing solutions worth the investment?

If you’d like to investigate how a staffing solution may benefit your business, please feel free to book a call with me here link.

Topics: RPO, Contingent Workforce Management