“Evolution” is a common term around CPO Rising, as many of the industries covered here on the site, be it ePayables or supply management, are currently undergoing a transformation within the average enterprise. Much of my contingent workforce content on CPO Rising revolves around the notion of evolution: evolution of talent, evolution of technology, evolution of capabilities, etc. And today, we take the notion of evolution one significant step forward.
The contemporary scope of contract labor deems that enterprises look beyond traditional means to manage the intricate flux of talent that is regularly brought into the organization. While this type (and size) of talent consistently brings value to the greater enterprise, a critical fact is that the modern contingent workforce management program must not only be agile…it must be deep, with capabilities and competencies across a series of functions.
It is with this crucial notion in the mind that Ardent has developed the concept of the 360-degree contingent workforce management program, which includes several key components that, when working in unison, deliver maximum impact to managing contract talent. The four main areas of the 360-degree CWM program include:
- Spend management. The core of any CWM program, and especially the 360-degree program, revolves around spend management. Contingent labor is growing at a rapid clip (30% over the next three years), and with increased utilization of staffing vendors, professional services, SOW-based labor and independent contractors (as well as other non-traditional workers) comes greater finances allocated to this complex spend category. The 360-degree program relies on the visibility and control of spend management principles to better forecast, plan and budget around the CWM category.
- Supplier management. One of the main reasons why procurement was so adept in past years in managing contract talent (and still so today) was that this unit took a “supplier-led” approach to tackling this category. Suppliers sit at the center of contingent workforce management, from suppliers of professional services to staffing agencies and consultancies. However, where the past differs from the present is that due to the complexities of “newer” sources of talent (i.e. SOW-based labor), there’s an added level of rigor needed within this programmatic attribute. Supplier optimization and supplier performance management are critical capabilities, as is the advent of project management, which involves managing suppliers to project budgets, delivery dates and key milestones.
- Risk management. The risks inherent in independent contractor utilization need no introduction. The relationships between enterprises and ICs are under consistent scrutiny to avoid misclassification and audits. And while IC compliance risks are typically the “hot” areas to tackle in regards to risk management, the 360-degree contingent workforce management program sees risk management as an overarching component to identify data, financial and labor control risks. Identity management is a crucial component to the risk management section of the 360-degree program.
- Talent management. As Ardent’s State of Contingent Workforce Management research report found, talent is the future of the CWM industry as more and more organizations move away from a commodity-led focus and towards a program that places extreme emphasis on the quality and skillsets of contract talent. The 360-degree CWM program leverages talent pools and social media strategies to find, engage and best align top-tier contract talent with critical enterprise initiatives.
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