For this two-part article series, CPO Rising becomes Human Resources Rising. Join resident contingent workforce management (CWM) resident and Ardent Partners research director, Christopher J. Dwyer, as he takes on the perspective of the contemporary human resources executive to tackle the consistently-evolving CWM category, and unveils a series of best practices, recommendations, and insights into the collaborative world of human resources and contingent workforce management.
In 2013, CPO Rising published an article that spoke of a “perfect storm” in the world of the non-traditional workforce (aka, contingent labor); this “storm” currently entails a new-found focus on the “talent management” components of CWM as enterprises wade through a range of veritable talent sources from which to engage non-traditional workers, such as freelancers, contractors, services, etc.
Ardent Partners research recently found that the totality of the modern contingent workforce (including traditional temporary labor, complex contingent labor (such as SOW, services, etc.) and independent contractors) is on a strategic rise, with 33% growth up ahead over the next three years. The rise in contingent labor isn’t just forcing enterprises to reevaluate their supplier and spend management strategies…they are now in full need of HR’s helping hands.
The 2014-2015 State of Contingent Workforce Management research study found that the “talent” focus of CWM will increase over the next two years, along with the notion that total talent management, a concept involving centralized management of both traditional and non-traditional workforces under the same program, will become the top focal area of CWM programs in the future.
This concept sparks one very critical notion: the role of HR in CWM is rising, and, for every procurement principle that is currently leveraged to manage contract talent, there is an HR capability that can be utilized, as well, to maximum effectiveness. It is with this notion in mind that we reveal the first half of some key recommendations for HR executives and professionals:
- “Collaboration” isn’t just a buzzword. Convergence is a popular theme here at CPO Rising, and rightfully so: cross-functional coordination is often an indicator of corporate success due to a free-flow of information, ideas, and intelligence. The walls between procurement and HR must be torn down in order to prepare for the future of contingent workforce management, in that an equal focus on talent and cost will require the very best of each function’s capabilities and competencies.
- Harmonious analytics are effective analytics. Much like collaboration, the concept of “Big Data” is here to stay. What role does HR analytics play in CWM? Simply, total workforce visibility. The intelligence gleaned from HR and CWM analytics / reporting can paint a vivid picture of total enterprise talent…which can be leveraged to align (in real-time) available resources (traditional or non-traditional workers) with the projects and initiatives that need them.
Stay tuned for Part II of this article series, which will further delve into how Human Resources can effectively contribute to contingent workforce management.
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