CPO Rising has been a central source of contingent workforce management (CWM) knowledge and thought leadership for well over a year, and, in that time, we’ve written about a vast array of topics that pertain to the contemporary perception of this truly complex category. We’re excited to present the first part of a two-part series that will deep-dive into how the modern small or medium-sized business (SMB) perceives and manages contract talent.
Contingent labor is relied upon by nearly every enterprise across the globe. Temporary workers, whether high-level talent or low-level replacements, actively assist companies during times of need. And while large, enterprise-size organizations actively utilize contract talent to achieve core goals and objectives, these companies are often privy to standardized and centralized programs that rely on various solution types to manage this talent.
For the SMB sector, this isn’t always the case. Utilizing data culled from Ardent’s State of Contingent Workforce Management research report, we will analyze the SMB market’s issues and challenges in managing contingent labor as a means to building an industry-wide “guide” (which will be unveiled fully in Part II of this series) for full effectiveness. Today, we’ll lay the groundwork for the SMB’s guide to contingent workforce management by addressing some of the gaps within these enterprises:
- Over the next few years, complex contingent labor (which is comprised of SOW-based projects and services and sits in the middle of Ardent’s Contingent Workforce Management Framework) is expected to grow by 15% or more in the SMB sector. An exciting figure, yes, but it points to a growing need within this set of enterprises: keep up with the process demand for contract talent that is much more intricate than other labor types. Complex contingent labor often involves both spend management and workforce management strategies (two keys of the 360-degree CWM program), and SMB companies must be equipped to handle this type of contract talent.
- Nearly 72% of small- and medium-sized companies currently manage all facets of their contingent workforce management programs in-house without the assistance of a third-party solution or technology offering. CPO Rising’s contingent workforce management content often revolves around the notion of “evolution,” which is occurring rapidly within this market. Outside help (such as a Managed Service Provider) and automation (Vendor Management System) are not the “nice-to-have” additions they were 10 or 15 years ago; these “must-haves” in today’s CWM climate.
- Unlike the general population, which deems cost savings and visibility as its top two CWM challenges, the SMB sector is currently seeking the most trouble with a now-accepted part of modern business: the total workforce is becoming more blended (number three on the general population’s challenge list). Contingent labor is on the rise (30% growth predicted over the next three years, according to Ardent Partners research), and this growth affects organizations of all sizes. Those companies in the SMB sector must be in-tune with the notion that, in order to drive maximum effectiveness from any CWM initiative, there needs to be a balance between spend management and talent management.
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