[Today we have our fourth installment of our series focused on The State of Contingent Workforce Management, Ardent Partners’ landmark new research study. In this series, report author and Ardent Partners’ Research Director, Christopher J. Dwyer, will highlight key findings from his report and outline just how much this space has evolved. If you are interested, copies of the report can be found here, here, and here.]
The modern business executive cannot escape the notion of “Big Data.” It permeates every aspect of the contemporary marketplace, from finance to IT to sales to procurement and spend management. As stated here previously on CPO Rising, Big Data will never be considered a “fad” in the eyes of the business world, its benefits are real, quantifiable and allow those organizations who embrace the advent of analytics and reporting to gain a more informed eye into the performance of their enterprises.
The modern scope of contingent workforce management is complex in nature and requires as much insight to effectively manage the three multifaceted layers of the Contingent Workforce Management Framework, including traditional temporary labor, complex contingent labor and independent contractors. As each category of the CWM Framework entails its own risks, goals and performance indicators, the rise of analytics and Big Data is a welcomed facet in generating long-term value from contract talent.
Chapter Three of the State of Contingent Workforce Management research study revolves around the concept of Best-in-Class enterprises and the gains they’ve achieved in comparison with all other companies. These top-performing companies have driven a 193% advantage over all other organizations in regards to the percentage of contingent labor that is actually accounted for in greater corporate budgeting, planning and forecasting, and have also experienced a 43% higher rate of year-over-year contingent workforce cost savings as a direct result of efficiencies and capabilities within the CWM spectrum.
It is no wonder, then, that Best-in-Class enterprises cite their reliance on Big Data and specific analytical capabilities as a key factor in their contingent workforce management success. These companies are:
- Nearly twice as likely as all other organizations to have the ability to benchmark data against peers and the wider industry, an intelligence capability that can help understand how a CWM program stacks up against like peers and spur performance improvement initiatives.
- 41% more likely to have the ability to evaluate the performance of talent suppliers within their networks, a capability that contributes to the overall visibility into enterprise projects and initiatives that leverage contract talent.
- Nearly 40% more likely than all other enterprises to be able to view contingent labor spending in real-time against corporate budgets, a factor that can help the executive team make more informed and strategic decisions regarding future utilization of contract talent.
Big Data is certainly a formidable ally in the modern enterprise’s CWM arsenal. Real-time visibility and intelligence can improve contingent workforce planning, budgeting, forecasting and overall management, and contribute to efficiencies across all three major categories (traditional temporary labor, complex contingent labor and independent contractors) of the Contingent Workforce Management Framework.
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