SO YOU WANT TO OUTSOURCE YOUR CONTINGENT WORKFORCE MANAGEMENT PROGRAM
WHAT HAPPENS NEXT….??
CXC Global have been in the contingent workforce management space a long time. So we’ve seen what works, and what doesn’t.
It’s a daunting task, deciding on what, how and who to partner with in managing your contingent workers. With multiple internal stakeholders and commercial targets, this is a complex and highly strategic project.
Here are some of the key considerations you need to make, to get it right for YOUR business…
Let’s start with the basics…
# Think about what your key drivers are for implementing a contingent workforce program. For example, are you aiming to…
- reduce the cost of your existing contractor population
- implement better processes for engaging and managing contract workers
- mitigate the risks of engaging contract workers
- improve the quality of your talent pool
# Now what do you already know about your contingent workforce? What insights do you have into…
- the size of your contingent workforce AND where your contractors are geographically located
- how your contingent workers are engaged AND the processes to ensure they are correctly classified
AND WHAT ABOUT…
- the true cost of your contingent workforce
so……it’s not so basic after all. Is it?
A lack of insight into fundamental information for managing a contingent workforce is common. The realisation that an organisation has gaping holes in its workforce data is a typical driver for looking to the professionals for assistance. And then implementing a contingent workforce program.
What your Contingent Workforce Program should deliver…
IMPROVED QUALITY
- improved supply chain management
- improved monitoring & reporting
- ability to attract & retain top talent
- consistent pay rates
- governed process to minimise rogue spend
- accurate budgeting & financing
- internal resource cost avoidance
REDUCED RISK
- increased visibility across your total workforce
- standardised contracts
- managed & consistent IR & WHS policies
IMPROVED EFFICIENCY
- centralised contingent workforce procurement & management
- consolidated invoicing & payroll processing
- increased productivity & reduced time to hire
THE MUST HAVES…
OF YOUR CONTINENT WORKFORCE PROVIDER
Experience – they have experience working with clients within your industry (or similar) of comparable size & complexity
Vendor neutral – there are no conflicts of interest with your exiting suppliers
Scalability – their services grow or scale down in line with the size of your contingent workforce
Partners – what partners do they work with? E.g. VMS providers
Technology – they need to be technology enabled, ideally with the ability to integrate into your existing system
Market Savvy – they have a firm, consistent and ‘live’ grasp of the legislation, market trends & insights availble at your disposal
Custom Offering – they have proven experience in delivering custom-fit solutions for every client, and every engagement. No ‘set & forget’ approach
Other High-Value Attributes…
Culture fit – make sure you consider the core values of your prospective provider. When philosophies are aligned, and you are each clear on your business strategy, it makes for a far easier working relationship
Benefits for your contractors – offering your contractors more than just the standard payroll and management service is great for contractor engagement. Benefits like EAP program, insurance discounts, tax & financial planning services
Current-state and future-state success – the best provider will have a strategy to garner cost savings in the short-term, but will also be able to predict future benefits for your business, across all stakeholders involved: HR, procurement, IT and finance
The best solutions are when your provider of choice are a true ‘PARTNER’ to your business…
There’s no silver bullet when it comes to contingent workforce programs…
NO FAST FIX
- if a provider is telling you they’ll generate immediate cost-savings, be extremely cautious
- immediate savings like rogue spend or margin blow-out will be fixed quickly. But your partner needs to take a broader vision
- a market leader will take a longer-term, strategic view. Remember: that’s best for you
WHAT’S YOUR END GAME?
- the better providers will want to know. That way, they can craft their strategy accordingly
- workforce planning & talent scoping aligned to business goals, will enable a sharp, forward-thinking provider to deliver a solution custom-crafted for your end game
- be judicious during your due diligence with information sharing. The more experienced providers won’t stumble to gain a clear understanding, quickly
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