The Contingent Workforce Management Program of 2016

Editor’s Note: Today’s article is a fun glimpse into the potential future of the contingent workforce industry. Ardent’s resident contingent workforce management expert, Christopher Dwyer, plays with some current trends regarding technology, labor utilization, and a general sense of the space to put together a vision of how CWM programs will function in 2016.

In 2009, the estimated percentage of contingent workforce utilization within the average enterprise hovered around 16% or 17%, the largest increase in temporary labor in the history of the business world. During the initial “aftershocks” of the economic downturn of the late 2000s, companies found that, during a time of recovery, contingent labor wasn’t simply an alternative workforce strategy any longer. In fact, there was true value to be experienced from injecting such a large quantity of contract talent into the greater internal talent pool.

The contingent workforce of 2014 is a force to be reckoned with, as Ardent Partners estimates that upwards of a third (32%-33%) of the average total workforce is comprised of contract talent. And, as discovered in Ardent’s landmark State of Contingent Workforce Management research report, this space is going to grow by 30% over the next three years, placing additional emphasis on the strategies, solutions, and general approaches enterprises take to effectively manage their contingent workforce. With the advent of Ardent’s Contingent Workforce Management Framework now assisting organizations in building a program that can effectively address all aspects of contemporary contingent labor, the stage is set for enterprises to drive efficiencies now to prepare for the future.

The CWM program of 2016 will revolve around a series of attributes that are already beginning to play a role in the modern-day CWM program. However, in just two years, these aspects will be at the forefront of how enterprises tackle the non-traditional workforce:

• “Talent networks” instead of “talent pools.” The convergence of social media, internal talent pools, supplier networks, and online labor marketplaces will provide enterprises with a veritable “buffet” of talent, all of which can utilized for specific needs within the organization. More emphasis will be placed on the alignment of talent and the projects that require specialized skill sets, and the idea of an integrated “talent network” will help companies address complex project requirements.
• Seamless integration of talent acquisition, contingent workforce management, and spend management technology. While some providers (namely Vendor Management System offerings) partner with or offer some attributes of talent acquisition and spend management software, Ardent Partners believes that the CWM world will experience seamless integration between these platform types to effectively address the growing, talent-based requirements of contingent workforce management and the strategic sourcing / spend management components that help manage costs. This integration will also lead to…
• …the true emergence of total talent management. The worlds of contingent workforce management and human capital management have been inching towards each other in recent years, as the CWM arena becomes more talent-focused instead of commodity-focused. We’ve previously discussed how total talent management (or total talent acquisition, another term used to describe the convergence of traditional and non-traditional talent management) can be effective long-term approach for managing all enterprise talent; however, many companies are turned off by the notion of bridging the CWM and HCM gaps, instituting procurement and human resources collaboration, and beginning the process of integrating relevant technologies. The evolution of the contingent workforce management program will force enterprises to approach TTM as an ideal means of managing all talent types, and assist executives in aligning talent (no matter if it’s traditional or contract) with the projects, initiatives and efforts that require those skills.

It’s an exciting time for CWM and HR professionals as they look to the future of their profession and glimpse a new way of doing business.

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