Convergence has been a hot topic around CPO Rising in 2014 (in fact, Ardent colleague and CPO Rising founder, Andrew Bartolini, focused his CPO-centric research report on this topic). Within the contingent workforce management (CWM) world, it’s taken some time for the very notion of convergence (or collaboration) to become an accepted and viable strategy for managing contemporary contract talent and its many intricacies.
At its core, the convergence of human resources (HR) and procurement within the CWM arena present an ideal relationship: the “people” people are actively working with the spend management team to effectively manage the two most crucial aspects of the CWM program. But, while at the surface all may seem well, every organization that is currently instituting collaboration between procurement and HR should ask themselves these four critical questions:
1. Are we really leveraging the “best” of both sides?
Our first question is the most simple to answer. It’s not hard to figure out if either side isn’t pulling their weight. There are two distinct sides to the collaborative CWM program, as we’ve mentioned before. If costs are in line with budgets and there’s a clear view into the wide range of talent suppliers, procurement has done their job well (especially, too, if certain compliance aspects are often alleviated). High marks across the Quality Index Score represent high-quality, effective talent…an area in which HR can excel. Gaps on either side (costs are too high, lack of visibility, failure to meet project goals, lapses in onboarding / offboarding procedures, etc.) are clear indicators as to which side is lacking.
2. Is there a free-flow of best practices and information?
We’ve discussed the advancements made in CWM intelligence and the role of “Big Data” in this arena. Data and true intelligence culled from analytical or business intelligence capabilities can help forecast both costs / budgets and talent gaps, and help executives better prepare for the future. Regular communication between the two groups seems like a no-brainer, but a free-flow of information must do more than scratch the surface. Supplier information should be shared with HR, while specific talent management aspects, such as talent forecasting and information related to talent pools, must be relayed to the procurement division.
3. Are CWM processes actually “blended”?
The term “blended” typically refers to the notion of the “blended workforce” (see next question), but true blended processes in HR / procurement collaboration translates into capabilities and competencies that are linked for maximum effectiveness and efficiency. Is there a unified system for reviewing candidates while understanding their past performance? Is it possible for either side to view compliance status next to project status? Can a procurement executive make an informed, educated decision on a consultant or professional based on both spend and talent information?
4. Are we working towards a real total talent management program?
It is common knowledge within the industry that the average enterprise’s stance on total talent management (TTM) is one that sways to both sides; depending on the will and focus of a company, a TTM program is either a revolutionary strategy or impossible approach. While HR and procurement collaboration is quite effective in managing contract talent, many of the underlying processes, systems, and solutions (i.e., RPO integrating with VMS) form the foundation of a total talent management program. With these integrated systems and processes in place, enterprises should be working to get to the “next level”: true total talent management. The benefits of this convergence can be experience beyond the CWM arena and help the modern enterprise build an effective program that captures, controls, and effectively manages both traditional and contract talent.
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