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 (HR) 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.
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 30% 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 second (and final) article in our brief “HR Executive’s Guide to Contingent Workforce Management” highlights the three aspects that must be a part of the HR agenda in order to effectively manage the evolution of not just traditional talent, but non-traditional talent, as well. Today’s article focuses on the “blend” of procurement, contingent workforce, and talent management capabilities, the “next-gen” attributes that will comprise CWM for years to come, and a final recommendation for those HR executives that seek guidance in driving ultimate value from CWM:
- Talent management and contingent workforce management fusion. Succession planning, workforce management, talent engagement, etc., are all HR-led capabilities…in the historical sense. However, today’s “flex economy” requires organizations to “blend” their functions in order to best manage all types of enterprise talent, no matter the source. Contract talent must be treated as delicately as traditional talent, and the best way to drive value from this workforce type is to lean on human capital competencies to ensure that goal is met.
- Alignment of HR and procurement goals. Admittedly, the goals of these two functions veer down two completely different paths. However, when it comes to CWM, these functions must work together towards more common goals. The main purpose of contract talent (in today’s economy) is not one of “cost reduction,” but one of talent. Therefore, HR and procurement must work collaboratively to ensure that, above all else, talent quality sits ahead of cost reduction efforts in regards to the engagement of non-traditional talent. Procurement’s expertise on the supplier management front (from a supplier performance management perspective) can certainly coalesce with HR approaches and strategies.
- “Total workforce optimization” should be the ultimate goal. Much has been said about total talent management, or total workforce optimization, and the goal of managing all enterprise talent (regardless of source) under a single, centralized umbrella of technology, services and capabilities. This ultimate goal is not an overnight transition, but must be a focus for human capital executives that strive to align all resources (contract or traditional) with the greater needs of the entire organization.
RELATED ARTICLES
The HR Executive’s Guide to Contingent Workforce Management
Announcing the Next “State” of Contingent Workforce Management
Procurement’s Evolution (Part IV): Convergence with Contingent Workforce Management
The Age of Socially-Sourced Talent in CWM
