Back in 2006, when I first started covering the contingent workforce and staffing industries, discussions around contingent workforce management (CWM) programs were dominated by a traditional commodity-led focus. Historically, the main performance metric leveraged to gauge the overall effectiveness of a CWM program was year-over-year cost savings on total non-employee spend (achieved by introducing automation to CWM processes, making CWM operations more efficient, supplier optimization, etc.).
In 2013-2014, this foundational element of contingent workforce management began to shift. More and more businesses perceived their non-employee workforce as a true value-driver, not just a talent-based stopgap. Around this time, the greater perceptions around the contingent workforce transformed from “commodity-led” to “talent-led,” ushering in a new era of CWM, one that still deemed cost savings as crucial, but allowed for more focus on aspects like visibility, compliance, and the depth and quality of talent.
In time, businesses began to crave agility and stated this desire as their top focal area, ahead of even core performance areas like visibility and intelligence. Entering 2020, the vast majority (nearly 80%) of organizations stated “the desire for an agile culture” as its top priority in regard to talent and work. However, as the COVID-19 pandemic wreaked havoc on the global economy, businesses found themselves realigning their goals and objectives in the face of uncertain and unprecedented times. For those tasked with managing enterprise contingent workforce programs, this realignment leads back to one thing: cost savings.
As we discussed in our Resiliency Imperative virtual series (be sure to check out all 20 on-demand sessions, available until May 31), business agility is actively supporting organizations as they seek to navigate these challenging times. Agility in its purest form (the ability to react dynamically to real-time pressures and challenges) should always be a goal for enterprises; in times like these, agility is what allows businesses to react and pivot as-necessary. For contingent workforce program leaders, agility will always be a focal area…today, however, they are turning to an “old reliable” that will help them through the major difficulties they face today.
Best-in-Class CWM programs execute across several performance arenas, from talent quality and visibility to compliance, and yes, cost savings. Taking a page from these leaders’ playbooks will be a required strategy in the face of uncertainty. Join me tomorrow at 11am ET for a complimentary webinar (hosted and sponsored by Beeline) that will not only highlight the advantages of an agile workforce, but will also discuss how today’s contingent workforce programs can effectively leverage innovative tools and strategies (such as direct sourcing and digital staffing) to boost its refocus on cost savings.
The contingent workforce is in the midst of a paradigm shift, especially considering the ramifications of the current global pandemic. Already in a revolutionary state, the agile workforce will prove invaluable during the uncertain economic times ahead for businesses that not only want to effectively react to market conditions, but also as they prepare for the second half of 2020 and a return to traditional demand for core products and services.
RELATED RESEARCH:
The Agile Workforce in Unprecedented Times
The New Normal of Remote Work (and Why You Should Follow the NFL’s Lead)
The COVID-19 Pandemic’s Impact on the Contingent Workforce Industry
