Welcome to the second of a multi-article series that will deep-dive into which internal unit owns responsibility for the vast array of intricate attributes of contemporary contingent workforce management (CWM). Today’s article will focus on the Human Resources (HR) unit and the role that they play in managing some of the more critical components of the modern CWM program.
We’ve previously discussed the critical role of procurement in modern CWM. This group, with deep expertise in spend management, supplier management, and analytics / reporting, presents a perfect complement to CWM, especially considering that much focus today is on gaining control over complex contingent labor (SOW-based projects and services).
And while procurement will continue to own much of the main responsibilities for crucial components of the typical CWM program, the HR group offers something that is now required to “balance” the more traditional attributes (read: spend management) of CWM: talent management.
As previously discussed here on CPO Rising, the war for talent is now an accepted attribute of any CWM program. While cost and supplier management concerns have and will always infiltrate many key processes (especially with much focus on complex contingent labor and its subcategories), the main goal of leveraging contingent labor, whether it be via independent contractor or professional service, is to transform high-quality talent and skill sets into organizational value.
With this in mind, the HR group has risen to prominence as a key cog in the CWM machine. Ardent Partners research (The State of Contingent Workforce Management research study) has found that, much like the procurement unit, HR plays a vital role and owns several key aspects of the contemporary CWM program, including:
- Management of traditional temporary labor. Traditional temporary labor, sourced via “classic” methods such as staffing suppliers and staffing agencies, remains an arena within the Contingent Workforce Management Framework that organizations have been managing for years. HR is an ideal leader for this CWM subcategory merely due to the fact that procurement is and always will be more suited to leverage its expertise in the management of complex contingent labor and its intricacies (SOWs, agreements, services, project management, expenses, etc.). The HR group can utilize its “people management” skills to easily (and quickly) fill administrative, accounting, and other temporary positions within the organization.
- Contract talent engagement and retainment. The key to this process is engagement. While other internal units that leverage contingent labor typically have no issues in finding temporary help when needed, the current scope of CWM requires that talent be the central focus of projects that need short-term labor. Talent acquisition is a key skill in the HR arsenal, and as specific skill sets become more critical to enterprise projects, this team will be the one to hunt it down.
- Independent contractor engagement and risk mitigation. The arena of independent contractor (IC) engagement and management is one that typically blurs the line of responsibility. In some instances, procurement leads the charge because of their willingness and experience in managing supply risk (yes, the risks here are completely different, but require a similar approach in regards to the monitoring and tracking of relationships and assessments). Ardent’s latest research has found that HR owns the main responsibility for this aspect of CWM, which signals the growing evolution of the industry and the modern organization’s willingness to institute collaboration between key stakeholders. One “hidden” aspect of the HR exec’s operational fortitude is a strong level of expertise in current labor laws, something that clearly allows this group to gauge their enterprise’s adherence to compliance aspects for IC engagement and utilization.
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