CPO Rising is counting down the top twelve things that the industry learned about the non-employee workforce in 2015. From aspects related to functional prowess (think: collaboration) to advancements in technology and the art of talent engagement, 2015 was an exciting year for a growing, evolving workforce that shows no signs of slowing down in 2016.
- “Total workforce management” represents the future of the contingent workforce industry. As the total workforce becomes more “blended” with both traditional and non-traditional talent, businesses will require a centralized program (and a set of integrated solutions) that can effectively drive visibility into total talent, align that talent properly, and have high-quality intelligence fused into long-term talent-based decision-making
- Compliance will always be a critical focus for contingent workforce management programs. The new State of Contingent Workforce Management research report highlighted many exciting trends in the CWM industry, including the “balancing act” that today’s businesses face as they manage a growing (and evolving) non-employee workforce. Compliance (to both independent contractor compliance classifications and local, state, federal, and regulatory labor laws) is one of the top focal areas in today’s contingent workforce management programs. With new and emerging sources of talent in heavy rotation in modern businesses, not all workers will be engaged with compliance in mind.
- Procurement’s new role in CWM? A conduit of control. Procurement has long been one of the main functions responsible with managing the contingent workforce, especially in the days when it was viewed more as a spend category than the force it is today. As the industry moves away from a “commodity” focus in favor of one that promotes talent and skillsets, procurement will not be left behind; control is a strength of the Chief Procurement Officer and its team, and that control can be applied to aspects such as compliance, visibility, and the status of projects and initiatives that utilized non-employee labor.
- Collaboration is the key to long-term success. Speaking of procurement’s new role, collaboration between this function and human resources will provide the real spark for long-term contingent workforce management success. The perfect blend of spend, supplier, talent, and workforce management capabilities can help organizations move closer towards the realm of total workforce management, while also balancing the focus on both costs/budget and ultimate quality/performance of the non-employee workforce.
- Longstanding, traditional contingent workforce management solutions, especially Vendor Management System (VMS) platforms, will provide ultimate support in the years ahead. The way today’s external workforce is growing, many organizations consistently require on-demand support and holistic processes for managing the many intricacies of CWM programs. As discovered in the new State of Contingent Workforce Management research report, there is a reason why VMS technology has remained the top solution utilized in this industry: the platform has become a true “nexus” due to its enablement of business intelligence capabilities, talent management/engagement processes, full management of “complex” contingent labor (i.e., SOW!), and spend management competencies. And, with VMS as one of the key solutions in the path to total workforce management, this solution will continue to be impactful.
- The non-employee workforce has the potential to forever change how work is done. There will never be a day when non-employee or independent workers completely replace traditional talent; as fast as this industry is growing, very few organizations will ever find themselves with more contingent than traditional workers. However, that does not mean that today’s non-employee workforce is not incredibly transformative: in the on-demand talent realm we live in, the “future of work” dictates that the way work is done will be altered forever as more and more talented, independent professionals continue to bring value to businesses across the world.
If you want to read more about the impact of the non-employee workforce, be sure to download the new State of Contingent Workforce Management research study, which includes deep discussions of the above items. And, also be on the lookout for a special announcement regarding Ardent’s 2016 contingent workforce management research agenda!
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