Today’s workforce is in the middle of a major shift, unfortunately, most companies have taken an ad hoc and disconnected approach to managing this external workforce. In the past, external workers were a smaller component of the workforce and considered to be short-term but times are changing.
Three types of contingent workers
- Resource augmentation to address short-term needs (e.g., maternity leaves);
- Managed projects which are term or project based; and
- Managed services (e.g., contact centres).
The many challenges companies face include:
- Business units are siloed and are doing their own thing, especially in terms of contract workers.
- There may be dozens of suppliers involved with business units using several each.
- There are too many hiring managers reaching out to friends or former employers, or relationships to various suppliers, to get some ad-hoc help.
- There is hiring without going through the bidding process.
- No one wants to own the contingent workforce across the organization as it requires cross functional support that can include procurement, finance, technology, operations, and in some cases, human resources.
Companies have varied concerns for external workers
- Human resources is by-passed as many contingent workers come through procurement units, but these external workers can account for one third to one half of a companies’ workforce.
- Since there are siloes, there is no oversight or centralized view of the contingent workforce.
- The enterprise standards are not consistently enforced, there are concerns for inconsistencies in policies, safety, and confidentiality including intellectual property rights.
- It isn’t clear who is making the decisions and at what level decisions are being made, in terms of who is being hired, for what, and how much they’re being paid.
- There are supplier gaps, with sourcing through inefficient and potentially biased processes.
- There is no tracking or data, no communication, no efficiency gains, or cost savings. In some instances contractors can be working for the same enterprise for several years with a staffing agency collecting an hourly fee, which can be costing the company millions of dollars.
In MIT Sloan’s article “Managing External Contributors in Workforce Ecosystems” it explains how Cisco, an employer of over 50,000 contingent workers, has created a strategy for managing this external workforce that involves cross-function governance, technology systems, and emphasizes values, culture, and diversity.
Curasion is the easy answer
Curasion provides the expertise and technology to support you in accessing, hiring, tracking, and proactively planning your contingent workforce. You don’t pay an agency fee for known talent. You can post jobs and proactively search talent pools for quick matches for highly skilled professionals. You gain efficiencies, considerable cost savings, and the ability to track your contingent workers and their availability.