Time to tune your Contingent Workforce programme!
The labour market has changed drastically over the past few years. Most organisations have experienced difficulties attracting new talent. The availability of contingent personnel is under pressure. The cost of labour is rising, due to a significant increase in pay rates. And regulation on hiring contingent and freelance personnel is becoming more strict and complex. Time to rethink your Contingent Workforce programme!
If you already have a Contingent Workforce (CW) Programme, it was likely developed and implemented under different market conditions. It was a solution to the challenges you were facing at that moment in time. In general the solution design is based on three key drivers:
Cost management
Optimising the contingent workforce management process makes it more efficient, saving time for your hiring managers. Improving supplier management leads to more competitive rates and is also a cost saver. Additionally, costs can be saved by making smarter use of the contingent workforce. For example by avoiding hiring higher qualifications than required and by being stricter in managing extensions.
Transparency and compliance
Channelling and collecting data about the contingent workforce of the organisation provides a clear view of the use of the contingent workforce. It also gives an insight into the effectiveness of the CW process. These data and insights make it possible to actively monitor and steer on compliance with internal policies and external regulation.
Access to talent
When it becomes more difficult to attract the right talent, a CW programme can facilitate better access to the talent in the labour market, through optimisation of the supply base and the implementation of a Freelance Portal.
We often see programmes that have been developed and steered on one of the above-mentioned key drivers, focussing on the challenges and opportunities of that moment. In other cases all drivers have been included in the design, but in a “balance” suitable for the conditions of that moment. Maintaining a strong CW programme requires a regular reconsideration of these drivers. What are the key challenges you currently face? And what would you need to be ready for the future?
The following 5 steps will lead you through the process of tuning your solution:
- Identify your key CW challenges for the next two to three years.
- Define what you need from your CW programme and the desired balance in your key drivers.
- Assess the fit-gap between your current solution - including technology - and the desired future solution.
- Identify and select the options to fill the fit-gap.
- Plan and implement the necessary adjustments.
When assessing the fit-gap, specific attention should be given to technology and artificial intelligence. Over the past years interesting enhancements have been made to existing solutions and many interesting new solutions have been introduced to the market. In some cases the required changes will be small. Like in programmes with a thorough, regular evaluation and adjustment process in place. In other cases the gap is bigger. Those programmes have often been running for a longer period of time. During this process you might even discover a need to change your long-term workforce strategy, exceeding the scope of “tuning your programme”. Tuning your solution to an up-to-date CW programme, with supporting technology in place, is absolutely worth the effort. It enables you to have the right workforce, at the right time, at the best rates, compliant with internal policies and external regulation. Would you like to discuss this topic? Or are you looking for advice on, or support with, tuning your solution? Please feel free to reach out.
Author: Marc Viëtor
