Welcome to the second article in a four-part series on the technological landscape within the CWM industry, which looks at how the “next generation” of these solutions may look by taking into account current market perceptions and the ongoing evolution of the CWM space. Our second entry focuses on Independent Contract Engagement Specialists (ICES) and how they may look a few years from now and well into the future.
Independent contractors play a pivotal role in the contemporary contingent workforce umbrella. Often times, the typical enterprise must fill a project-based need with a specific skillset. And, in engaging this talent, an executive or manager can sometimes ignore the route paved with staffing suppliers or agencies by tapping into his or her own personal network, sourcing a contractor directly.
While these independent contractors (ICs) bring a great deal of value to the average organization, such as top-tier talent, short-term engagement and flexibility, the truth is that even the slightest array of mismanaged processes can bring about various risks. As I’ve previously stated here on CPO Rising (remember the “independent contractor conundrum”?), poorly-managed relationships between contractors and the greater enterprise can result in financial, tax, and other benefit-related liabilities.
Much like VMS technology can help an organization’s management of traditional temporary labor and complex contingent talent, ICES offerings have been specifically designed to assist organizations in managing their IC-based talent. By providing both automated and consultative processes for engaging and managing independent contractors, ICES solutions regularly assist enterprises in effectively maintaining proper relationships with contractors to mitigate the risks of federal audits or co-employment.
With the CWM space evolving as it has over the years, we may see ICES solutions expand by:
- Helping organizations widen their contract talent pools via social networking. It’s been stated here at CPO Rising that talent is the centralized priority of the new contingent workforce management world. Enterprises, while still maintaining a focus on improving a variety of key performance indicators (compliance, cost savings, etc.), will attempt to enhance their processes for finding and engaging talent. ICES solutions, already offering talent pool development capabilities, will expand these functionalities to integrate social media platforms and other networking competencies, effectively widening organizational talent pools.
- Integrating the notion of “Big Data” into the world of IC engagement and management. While some ICES solutions are already grasping the concept of “Big Data” and how it can be specifically-applied to the IC engagement / management world, the next generation of this solution type will be the central repository of IC intelligence, including real-time information regarding assessments, relationship status, compliance to guidelines and policies (state, federal, regulatory, etc.) and other key areas within this sub-space.
- Bridging the “emotional gap” between ICs and the greater enterprise. One interesting aspect of the Managed Service Provider (MSP) model (highlighted in our next article in this series) is their consultative approach to contingent workforce management. ICES offerings will expand its suite to offer more consultative strategies for its users in bridging the “emotional gap” between ICs and the greater enterprise by ensuring, without crossing the lines that get some organizations into trouble (i.e. co-employment), that the two parties can work in such a way that it benefits both sides. The sometimes-cold nature of the industry dictates that ICs can (and should) move freely as their flexibility sees fit; with ICES as a conduit between the enterprise and its contractors, both parties can plan for the long-term benefits of working together on various projects without worrying about the risks behind the scenes.
A leader in the ICES and IC engagement / management industry, MBO Partners’ robust platform includes a variety of capabilities for enterprises to leverage to not only mitigate the standard risks of utilizing independent contractors, but also address the development of company-specific talent pools (an item mentioned in the list above) by centralizing “already known talent” for easy access when future projects arise that may require unique skillsets.
MBO Partners is also actively offering visibility capabilities to help their users drive intelligence around the utilization of independent contractors, small firm suppliers that are considered ICs, and various risk assessments. MBO’s analytical capabilities also drive visibility into IC rate management, helping to ensure that their clients stay on-budget in regards to projects that utilize contract talent.
Reminder – our Contingent Workforce Management 2013 Survey is live. If you have a few minutes today, please consider taking it – you’ll receive our appreciation and a free copy of the final report (no need to register, we don’t share names, noone will be contacting you, etc.).
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