In any business function, visibility is paramount. The wide scope of enterprise operations, from invoice-processing and supplier management to talent acquisition and spend management, necessitates a modern focus on the art of Big Data and its transformation into the “age of intelligence.” Data has always been important…this fact won’t be disputed here. It’s the newfound concept of agility that has thrust businesses into a new era of reporting and analytics, one that not only signals that information from all sources must be considered to execute major enterprise decisions.
About a decade ago, many organizations found themselves pushed into a new world of information. The varying foundational elements of Big Data-led strategies never really shifted in the years since; it’s the very utilization and depth of data that beckons this new “age of intelligence.” For those organizations with robust contingent workforce management (CWM) programs, the art of analytics is something that is both a source of incredible knowledge…and incredible stress. Consider that:
- More than 60% of all non-employee talent (including traditional temporary labor, independent contractors, professional services, freelancers, and “gig” workers) is unaccounted for in corporate budgeting, planning, and forecasting. With the rate of contingent labor utilization continuing to grow (40% of the average workforce, according to Ardent Partners research), this presents issues from talent quality, cost/spend, and performance perspectives.
- Today’s non-employee workforce traverses beyond the simple augmentative approach that companies have taken in the past with its contingent labor. Ninety-six percent (96%) of businesses perceive non-employee talent as critical to overall enterprise operations; this figure is a pure representation of just how crucial these skillsets are in relation to achieving corporate goals and objectives, and;
- The newfound focus on business agility translates into the need for on-demand and real-time decisions, particularly when it comes to engaging and sourcing talent. A lack of visibility, or even weak data, can have profound ramifications in this regard.
And, here’s another aspect that reinforces the need for more emphasis on intelligence: there is an incredibly strong link between contingent workforce management and the Future of Work. Non-employee talent, its impact, and the work it is aligned with all underpin the notion that the Future of Work is built on a CWM foundation. The ability to react in real-time and the ability to be dynamic in how work is addressed are both vital elements in thriving in the evolving world of work. In breaking down the CWM attributes that contribute to a company’s overall visibility and analytical prowess, there is much at stake:
- Harnessing the wide reach of Vendor Management System (VMS) analytics to provide real-time visibility into spend, suppliers, workers, projects, and more. VMS has long been the king when it comes to contingent workforce technology, as it sits in the center of a solutions ecosystem with other platforms and services to address the evolving needs of talent and the greater workforce. Thus, on-demand analytics and intelligence are typically front-and-center in the utilization of VMS platforms beyond providing simple reports. “One of the things that has shifted is that it is no longer enough to provide access to data via reports and visualizations. The world (including the CWM world) moves at such a fast pace that you have to provide actionable intelligence at the user interface no matter what that interface is,” says Brian Hoffmeyer, SVP of Market Strategies at Beeline, a global VMS provider. “Over time, the most valuable thing that long-term clients get out of the Beeline VMS is information – data on which to base both tactical and strategic business decisions. That’s why providing access to that data – in more-and-more advanced ways – is so important to Beeline’s current and future product strategy.”
- The depth of Managed Service Provider (MSP) insights. MSPs have long-remained a viable option for organizations that require a fully-outsourced solution for managing their CWM programs. One of the by-products of day-to-day management of a company’s non-employee workforce (and other attributes) is deep intelligence concerning key suppliers, skillsets, labor rates, worker quality, etc. And, that level of intelligence can support dynamic business decisions. “Data, and the ability to convert that raw data in actionable insights, has become an operational imperative for organizations seeking to secure better business outcomes,” says John Healy, Vice President and Managing Director of Global Talent Supply Chain at Kelly Services. “In the changing landscape of how people and work connect, many historical paradigms regarding when to buy, build or borrow talent have become barriers for future success – data analysis provides the opportunity to unlock those barriers. Securing that necessary data inputs and converting that data into actionable insights is at the cornerstone of driving value in the services we provide our clients.”
- “Extended” talent- and workforce-based intelligence from the newest kid on the block: digital staffing. The utilization of digital and online staffing platforms has nearly tripled over the past several years, sparking new ways for businesses to tap into fresh sources of talent and expertise. However, many enterprises forget that the “extended” level of intelligence borne by these outlets can be critical in gaining a truer picture of the greater quality of an organization’s total talent pool, as well as its talent gaps. “Data and intelligence, and how we leverage them are the lynchpin that will enable the Future of Work to materialize in the form of a fully optimized workforce. Capturing the right data points and using intelligence to analyze that data in real time moves us from a legacy state of reactive decision making and puts us in a proactive and/or predictive stance, which has massive implications downstream in a hypercompetitive marketplace,” says Sean Ring, Chief Revenue Officer, Fulcrum. “Fulcrum’s clients depend on data and intelligence to make pivotal workforce planning decisions. We provide them with real-time access to incredibly actionable data points that can be used to analyze and compare all of their currently deployed forms of talent (freelancers, FTEs, staff augmentation, consulting, etc.) and specifically the speed, quality, and cost of finding and deploying high-impact talent by category.”
Advances in data analytics are changing the way that humans work and interface with technology in order to optimize how work is done. As the world of contingent workforce management enters its “age of intelligence,” the already-robust link between CWM and the Future of Work will be strengthened by the actionable insights provided by both innovative platforms and traditional (yet evolving) solutions.
NEW WEBINAR – Join Ardent Partners on a live webinar, Thursday October 25 at 2 PM ET where we will be discussing “Procurement’s Role in Contingent Workforce Management” (click here to register).
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