[Editor’s Note: CPO Rising is excited to launch a two-part series on the ever-changing concept of talent engagement and how today’s non-employee workforce is consistently evolving due to new platforms, solutions, technologies, and functional models. On the docket for today: an exclusive discussion of procurement’s new role in not only contingent workforce management (CWM), but also total talent acquisition and total workforce management.]
When any contemporary business executive takes a 20,000-foot view of its enterprise, chances are there will be one major difference from years past: the notion of “talent” is not only one of the most critical advantages of the greater organization…it is consistently shifting, changing, and evolving into something that traverses simple technology or traditional business strategies.
Talent is found, engaged, and sourced in new and exciting ways, with true skillsets and expertise available via on-demand and real-time means. Combine this attribute with the continued “blending” of talent (today’s workforce: 65% traditional FTEs, 35% non-employees, according to new Ardent Partners research). Businesses in 2016 must revolutionize their talent engagement strategies and programs to ensure that, internally, there is an idyllic alignment between critical projects, tasks, and initiatives, and their required skillsets and expertise.
Today’s article will focus on one major aspect of the disruption of talent engagement: procurement’s evolving role in contingent workforce management. For years, many organizations treated the contingent workforce arena like it was “just” another spend category. While that worked well for a period of time, especially in the years when staffing suppliers, vendors, and agencies were the standard for sourcing workers, the scope of today’s talent engagement progression necessitates the proper mix of spend management, supplier management, workforce management, and talent management capabilities.
The “Conduit of Control”
No longer does a traditional spend management strategy work as the lone approach for non-employee talent management. The notion of collaboration may cause some professionals to roll their eyes (besides “Big Data,” is there any other business concept that is talked about more?). However, procurement’s new role in CWM, considering the continued push for “total workforce management,” is not just one that is founded on collaboration. No, procurement must have a clear and confident role.
Ardent Partners’ new State of Contingent Workforce Management research study (download it here) found that today’s CWM programs must maintain a “balancing act” between visibility, compliance, budgets/costs, and overall talent quality. How does procurement play a role in the disruption of talent engagement? By infusing their known level of control into greater CWM strategies and ensuring that all talent, no matter the source, is engaged and sourced with a level of compliance, spend, budget, and quality control. The “newer” sources of talent, such as online marketplaces, mobile applications, and social media, are often found and leveraged outside of the standard program. And, as we all know, there are known risks inherent in every contingent workforce, from missclassification to federal audits to a general lack of visibility that can derail key enterprise projects. Contract management, project management, budget/spend management – these are the areas of expertise held within today’s procurement ranks, and are all incredibly applicable to an arena that has such a strong impact on overall business operations, especially considering procurement’s knack for promoting visibility.
Final Thoughts
While the acquisition and ultimate management of talent remain the “flashier” components of today’s non-employee workforce programs, procurement’s true role in the disruption of talent engagement is as the function that keeps a calm, controlled, and visible eye as the industry continues to grow and evolve.
For those readers interested in online talent platforms, integration of technology, and other solutions that are disrupting talent engagement, you will not want to miss Part II of this series. Stay tuned!
Contingent workforce management will be one of many exciting topics covered at Ardent Partners’ inaugural CPO Rising procurement executive summit to be held in Boston on March 29-30, 2016. Early-bird registration ends next month, so be sure to reserve your spot now and save! Click here!
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