There has been a heavy “sub-theme” running through the contingent workforce management (CWM) content here at CPO Rising, one that’s certainly been permeating through every CWM program across the globe: the focus on talent. The contemporary CWM program, in past years, was primarily focused on the spend management aspects of this complex spend category, often leading with an eye to drive cost savings while also supporting greater corporate cost reduction efforts. However, as this space evolved, it was clear that the realm of contingent labor had become more strategic in scope…forcing companies to effectively balance their spend management approaches with a human capital “touch.”
The solution marketplace for the CWM industry has evolved just as the space itself has, with technological platforms offering more than just “classic” requisition management and supplier management functionality. Vendor Management System (VMS) solutions have become a veritable epicenter of contingent workforce power, offering capabilities that span traditional notions (requisition management, e-procurement-like tracking of suppliers, etc.) and modern competencies [advanced analytics, business intelligence, and SOW / services (complex contingent labor) management].
However, as said above, VMS solutions (amongst other solutions in this arena) have evolved to “keep up” with the greater CWM market. In an era that deems talent be put ahead of cost and spend management, these platforms have had to incorporate human capital management elements as a means of offering enterprises a center-led, technological platform that can effectively manage the three main focal areas of modern-day CWM: talent quality, cost savings, and compliance management.
The “blended” approach of spend management and workforce management strategies is an ideal means of tackling the more intricate aspects of CWM, particularly the new-found focus on finding, engaging, and managing top-tier contract talent.. Talent management must be a primary emphasis for those enterprises seeking to enhance their existing CWM programs and infuse more of a human capital management approach towards labor that, while once considered ordinary temporary labor, is now a strategic advantage within the average organization.
Ardent Partners has conducted a wealth of research in the CWM arena, and has found that VMS users are currently:
- Twice as likely as non-VMS users to integrate university collaboration programs into the CWM program as a means of finding new, young talent
- 80% more likely than non-users to leverage an integrated and blended RPO find and engage talent (which also supports the concept of total talent management), and;
- 32% more likely than those enterprises not currently utilizing VMS technology to have talent forecasting abilities, which can identify future talent gaps and allow executives to better plan for critical company projects.
The main takeaway from the bullets above is this: in any business industry, technology platforms must evolve…or fade away. It’s no great secret that the typical contingent workforce is now heavily-reliant on a talent-led approach instead of a commodity-led one, and VMS technology is providing a link to the talent management capabilities that are required to effectively manage this strategy.
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Tracking the Evolution of the VMS Platform
Next Generation of CWM Technology, Part I: The VMS of the Future
CWM Technology Update: Q1 / Q2, 2014
Common Fodder in the World of Contingent Workforce Management
The Perfect Storm of Non-Traditional Talent
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