Even under the best of circumstances, supply chains can be difficult to manage. How can you predict the right number of suppliers, products, and services when business can change on a dime? Even the most efficient businesses struggle to strike the right balance!

While there is no such thing as perfection, you can use the principles of supplier rationalization to reduce time, improve quality, and increase revenue. We’ll look at how this concept works in real life and how you can best implement it to your advantage.

 

What Is Supplier Rationalization?

 

Supplier rationalization is the strategic process of evaluating and optimizing your supplier base to enhance the efficiency and resilience of your supply chain. This approach involves a thorough assessment of current suppliers, focusing on performance metrics, cost-effectiveness, and alignment with business objectives to ensure a lean and robust supplier network.

 

What Are Some of the Benefits of Supplier Rationalization?

 

Supplier rationalization optimizes your limited resources, helping you spend your time, money, and efforts where they are needed most.

 

1. Cost Savings

 

By evaluating and selecting the most efficient suppliers, companies can negotiate better rates, reduce overhead costs, and eliminate underperforming or redundant suppliers. Through supplier rationalization you may find value in consolidating spend with fewer suppliers, which can increase purchasing power and lead to volume discounts and more favorable terms. 

2. Improved Efficiency

 

Streamlining the supplier management process reduces administrative oversight. Fewer suppliers means fewer contracts to manage and less time spent on procurement activities. Allowing for more strategic work to be accomplished. 

3. Improved Relationships with Suppliers

 

Building stronger relationships with key suppliers can lead to joint efforts in cost-saving initiatives. Your company can also devote more attention and resources to nurturing its relationships with your remaining suppliers. This can lead to better communication, collaboration, and mutual understanding. 

How Does the Process Work?

 

Optimizing your supply chain can be a detailed endeavor. We’ll break down the broad brushstrokes of the process, so you can get a general idea of how it works.

1. Assess Current Supplier Base

 

Supplier rationalization typically starts with a cross-department team, including people from HR, IT, and procurement. You’ll compile the spending data, vendor performance, and compliance standards to identify which suppliers are your highest priorities.

2. Establish Criteria for Suppliers

 

All business owners want suppliers with reasonable prices, consistent performers, helpful attitudes, and compliant standards. Of course, when it comes to defining these qualities, everyone has their own opinions about what it means to be helpful, affordable, and safe.

During this part of the process, your metrics need to be spelled out, so it’s easier for the team to decide what to do about the supplier. For example, you might use spend analysis to show that despite a supplier’s slightly higher costs, the value delivered is worth the extra expense because they lower the organization’s risk levels.

3. Select and Consolidate User Base

 

During this step, the team formalizes which suppliers they’ll eliminate and which they’ll retain. Here are a few factors to keep in mind during this phase:

• Quantity: Is the supplier a regular partner or a one-time deal? How much do you buy from them?
• Capacity: Is the supplier equipped to provide the services requested? Is the supplier flexible enough to change according to your internal policies and protocols?
• Compliance: How well does the supplier understand and adhere to federal, state, or industrial standards and regulations?
• Pricing: What percentage is spent on each supplier? Does the supplier offer incentives or discounts based on volume?
• Reputation: Does the supplier maintain a good reputation in the industry? Do they comply with corporate and environmental best practices?

Once you’ve answered these general questions, you can start breaking down your suppliers even further based on not just spending but also the potential for future partnerships. You should also consider where new suppliers can be onboarded, particularly for contingency support in case of supply chain disruption.

4. Negotiate and Implement Contracts & Agreements

 

Negotiating your contracts and agreements works best when you have all the data at your fingertips. The supplier rationalization process should take into account your relationship with the supplier, the intellectual property you share, the sourcing/procurement requirements, and the alignment of corporate citizenship values. During this step, you’ll work out as many win-win agreements as possible.

How Can You Implement Supplier Rationalization

 

At Monument Consulting, our dedicated team of Supply Chain resources can help you work out a comprehensive solution for supplier rationalization that is as affordable as it is aligned with your business goals.

Regardless of industry, Monument’s supplier rationalization service can help you reduce your costs across the board. If you have questions about how to implement its principles, the team at Monument Consulting is here to help. Contact us today to learn how we adapt our solutions to fit your needs.

Whether you own a conglomerate or small business, there are endless benefits to hiring foreign workers. Not only do you increase your cultural expertise, but you can strengthen your company’s presence around the world. Of course, it can be a complex process to manage employment in multiple countries, which is why a global Employer of Record (EOR) can be the cost-effective bridge you need to minimize risks and maximize rewards.

What Is a Global Employer of Record?

A global Employer of Record (EOR) refers to a third-party service that enables companies to hire foreign workers. The EOR acts as a local employer, and they do so at your request. Instead of your company assuming risk and liability, the EOR takes these concerns off of your plate.

As the responsible party, it’s their job to know the legal and compliance obligations of each country and region. It’s your job to maintain the employee-employer relationship, much as you would with any other team member.

It’s worth noting that global Employers of Record can also function within your country, and they’re especially useful in countries with states or provinces with different tax laws. You might find that EORs are invaluable for simplifying your payroll, administrative tasks, and compensation packages.

 

What Is an Example of an EOR?

 

Let’s say that you owned an ecommerce store in the US, and you want to expand your services to South Africa. However, you don’t know very much about the best marketing strategies. You can hire a local expert to market your products in a way that will connect with your core audience. You can use a global EOR to officially employ the marketer, instead of researching compliance rules and regulations in the country.

 

Benefits of an Employer of Record

An EOR is more than just convenience. We’ll look at what you can expect from an EOR, whether you’re hiring full-time or contact workers.

• Labor regulations: If you were going to hire legal workers properly, you might need to set up legal entities in the respective regions. With an EOR, you don’t have to worry about the labor laws and tax regulations. Instead, you can focus on your core business offerings.
• Compensation packages: Paid leave, healthcare, retirement: there are certain benefits that workers are entitled to, and it varies by country (in some cases, it varies by state or even city). With an EOR, you don’t have to worry about missing anything.
• Onboarding: EORs make it easy to draft contracts, setup payroll, and get employees up to speed. Plus, you don’t have to worry about intellectual property theft because the contracts will cover all the bases.
• Contract workers: The nature of contract work is complicated no matter what country you’re in. An EOR not only helps classify workers correctly according to the country’s definitions, they also reduce much of the back-and-forth to ironing out the terms of each worker.

 

Difference Between EOR and PEO

 

A professional employer organization (PEO) handles HR tasks, meaning anything from international payroll to reporting, which can make an EOR and a PEO seem like the same service. However, you can only use a PEO if you’ve first established legal entities in the country where you wish to hire. With a PEO, you’re more of a co-employer, meaning you need to sign a contract with PEO and thus assume liability for compliance and legal laws.

You can think of a PEO as more of an administrative team that can drastically reduce your paperwork. However, should the PEO make a mistake, the final fallout will typically be on your shoulders. If you don’t already have legal entities set up, it usually makes more sense to hire an EOR. The initial costs for an EOR may be more expensive, but the decision can end up saving you a lot more in the long run.

 

When Should EORs Be Used

 

There are numerous scenarios where you can use an EOR to save time and money, while reducing your liability.

You’re on a time crunch.

Setting up a legal local entity can take months, and it can cost tens of thousands of dollars. If you have an employee who wants to relocate or you largely employ remote workers and you have a country in mind, you don’t necessarily have the time to fight with bureaucrats who are likely much more lackadaisical than you about the whole process.

You’re confused about worker classification.

Temp, contract, contingent workers, full-time, part-time, salaried: employees can be referred to as practically anything. With an EOR, you don’t have to worry about who should be classified as what and what they need to receive to fulfill the terms of the contract. Enforcement and definitions can be very different from country to country, so it’s critical not to make assumptions.

You don’t want your intellectual property stolen.

Opening up your company’s inner workings comes with plenty of inherent risk. If the worker does take advantage of your IP, you may not have a lot of recourse if you don’t have the right protections in place. An EOR can both set up the right boundaries and take action should a worker violate one of those boundaries.

 

How to Find an Employer of Record

 

The best way to find an EOR is to do your research. At Monument, we rely on our vast network (and excellent relationships) with proven suppliers. As you’ve likely already guessed, it takes a lot of expertise to dot all the i’s and cross all the t’s. Any time a labor or tax law changes, the EOR has to be both aware of the bigger trends behind the shift and on the ball when it comes to adjusting their own practices.

If you’re asking what is an EOR or you’re in search of a reputable EOR, contact Monument Consulting to learn more about who our partners are, where they are, and why they’ve managed to meet our highly selective criteria.

Direct Sourcing is a modern recruitment strategy where organizations directly engage with and hire talent without relying on external staffing agencies. It empowers businesses to identify, attract, and onboard candidates using their internal resources, providing greater control over the recruitment process. In essence, it’s a direct line of communication between employers and potential hires, fostering relationship-building and customized talent pools. This approach is gaining popularity in the current job market, offering organizations a more agile and responsive way to meet their workforce needs.

As organizations navigate the complexities of the modern job market, Direct Sourcing provides a solution beyond merely filling positions. It’s about building a talent ecosystem that aligns with the unique needs and culture of the organization. Direct Sourcing helps companies attract and engage top talent, especially for companies with ongoing and frequent hiring needs.

 

Benefits of Direct Sourcing

 

Direct sourcing programs can bring numerous cost-saving benefits to organizations, provided they are well-designed and properly managed. The advantages of a direct sourcing program include increased control over employer branding, reduced costs and time to hire, decreased risk, improved efficiency, higher retention rates, and the ability to engage niche talent. Here’s a breakdown of the key benefits:

 

Reduced Costs and Time to Hire:

Direct sourcing tools, such as online marketplaces, offer flexibility in talent acquisition, enabling hiring managers to source and self-select contingent talent more efficiently.

Eliminating intermediaries in the recruiting process saves time, money, and resources.

 

Decrease in Risk:

Properly implemented direct sourcing strategies simplify the vetting process, minimizing the risk of worker misclassification and associated legal issues.

 

Increased Efficiency:

Direct sourcing not only reduces time-to-hire but also encourages faster and more effective onboarding, creating a more efficient talent pool of contingent candidates.

 

Increased Ability to Engage Niche Talent:

Direct sourcing provides access to a pre-screened pool of specialized contingent talent, making it easier to engage and retain the right people for specific projects.

 

Flexibility to Hire on a Project-by-Project Basis:

Organizations gain the flexibility to hire contingent workers on a project-by-project basis, aligning talent needs with specific business requirements.

 

What Does Direct Sourcing With an MSP Look Like?

 

In a strategic partnership for direct sourcing with an MSP, the Managed Services Provider takes a central role in overseeing the sourcing, contracting, and management of the extended workforce. This inclusive approach covers temporary staff, seasonal workers, and independent contractors. Leveraging advanced process methodologies, the MSP streamlines the sourcing and onboarding processes, expediting hiring procedures for enhanced efficiency.

The collaboration extends further as the MSP oversees the direct sourcing technology, talent delivery team, and infrastructure to engage candidates, ensure compliance, and facilitate seamless onboarding. This multifaceted involvement not only grants organizations access to diverse talent pools but also supports redeployment efforts, aligning the workforce with evolving demands.

Engaging with an MSP presents strategic advantages in workforce management. MSPs offer specialized expertise, contributing to faster and more efficient sourcing and onboarding. The provided infrastructure, including talent delivery teams and compliance management, ensures the effective implementation of direct sourcing strategies.

The collaboration doesn’t merely focus on immediate benefits; it extends to long-term strategic impacts on hiring capabilities. MSPs optimize supply chains for cost savings, maintain compliance adherence, and contribute to navigating complex labor laws and regulations. The flexibility provided by MSPs enables organizations to scale their contingent workforce according to dynamic needs.

In essence, the synergy between organizations and MSPs for direct-sourced labor harmonizes expertise, efficiency, infrastructure, diverse talent pools, cost savings, strategic impact, compliance support, and flexibility. This collaborative approach becomes a cornerstone for effective and streamlined workforce management.

Ready to gain control of your contingent workforce with full transparency?  Contact us today to discover how our collaborative approach can transform your business.

Worker classification has been tricky for companies since the dawn of regulations. Considering today’s stringent contract requirements and benefit stipulations, the stakes have only gotten higher. With better SOW management, you can reduce your risk while improving your communication with all members of your team. Here, we look at how SOWs are different from temp workers and why you might need some external help to effectively manage your labor.

Understanding SOWs

 

Statement of Work (SOW) sets the terms for an outsourced engagement. It lists not just the scope of the work and the timeline, but also the milestones the worker is expected to complete and the payment for approved work.

A more detailed and transparent SOW can mitigate everything from confusion to overspending. This transparency in detail gives you the insight to make more data-driven decisions, and it typically makes for faster and higher quality deliverables. When you have all of your ducks in a row, it takes much less time for everyone to get up to speed.

Temporary Workers vs SOW Contingent Labor

 

The main difference between temp workers and SOW staffing is the sourcing method. With a temp worker, you’re likely to go through a staffing agency during times of peak production or on a new project. With an SOW , you might go through an independent entity (e.g., a sole proprietor), but you might also go through a consulting or specialty outsourcing firm.

Whereas a temp worker may come into the organization, work a certain number of hours, and get paid a set hourly rate; an SOW worker is typically driven by milestones as opposed to punching a clock. They’ll have all the details upfront, which means they usually have increased motivation to deliver on time and at, or under, budget. When deciding to select temp workers or initiate a SOW, it’s important to have firm guardrails in place to help hiring managers determine if what they are hiring for is a SOW or a temp worker. 

 

Managing SOWs Effectively: Strategies and Insights

 

Some considerations to ensure you are managing SOWs effectively:

• Proper classification: It’s easy (and relatively common) for people to misclassify workers. For example, you might pay a temp worker at an independent contract rate, which can balloon your costs considerably. You can’t always rely on department heads or managers to catch this mistake either — they’re often more concerned that they’re meeting their own deadlines.
• Legal implications: Every class of workers has rights, regardless of how long they work with you or for you. Should you violate any of these rights, they would have sufficient reason to sue for the missed benefits. Plus, if you make one mistake, the IRS is more likely to target you for your hiring practices, which can end up being a headache of clarifications, if nothing else.
• Follow-up: It’s important to follow up with your contingent workers, regardless of how they’re classified. This doesn’t necessarily mean micro-managing them, but it will mean tracking everything from their costs to their time to their deliverables. So, if you believe that you paid an SOW worker too much based on the scope of work, you have more insight into whether it would be cheaper to hire an hourly temp worker the next time around.

Budget Management

 

Managing your budget can feel like a full-time job, whether you’re using SOW staffing or temp workers, especially if you have plenty of one-off projects to go around over the course of the year. You can easily end up onboarding an SOW worker with one stack of tasks only to pivot several times, extend the contract, or otherwise ask for additional work. This is normal, but it can send your budget spinning out of control.

The best way to manage your budget is to collect and analyze as much information as possible in order to write an accurate SOW from the jump. Only when you can see the bigger picture can you validate that the SOW you are crafting will hit the mark. For example, if you have a deliverable based project that you are writing a SOW for, it’s critical to consider your deliverables down to a level that will help to ensure there is clarity in how the top line milestone is to be met. This will help decrease the odds that a change order and more budget will be required down the road. 

SOW Management and MSP/VMS

 

There are ways to better manage your SOWs when you work with a Managed Service Provider (MSP) and a Vendor Management System (VMS). By combining the powers of a MSP and VMS, you get expert advice and help manage your contingent workforce, increased controls, and increased visibility of your contingent workforce program.

The MSP will look at the overall efficiency of your program, and perform the proper maintenance to optimize the program’s performance. The VMS will help ensure the process is repeatable, such as onboarding, timekeeping, offboarding, and invoicing. 

If you choose an MSP like Monument, you can use their network to choose a VMS that is as professional as they are capable. Unlike a run-of-the-mill staffing agency, you can take more specific requests to your MSP and get customized answers for your business. The advantage of working with the same partner year after year is that you can grow at nearly any pace without having to worry about wasting your resources as you go from one rung to the next.

Decision-makers don’t always have the time or the help to manage a contingent labor force, and this is true for small businesses and conglomerates alike. If you feel like you could use some help in cutting costs, reducing liability, or improving your workflows, contact Monument Consulting today to discuss.

The term contingent worker is an umbrella term, meaning it can be used in different contexts across an array of professions. If you’re interested in how these workers step in when they’re needed most, we’ll look at different types of contingent workers, their roles, and how they’re different from a traditional employee.

What Is a Contingent Worker?

A contingent worker refers to a person employed on a per-project basis. Unlike full-time or even part-time employees, they do not receive benefits, such as pensions, paid-time off, or healthcare. Contingent workers are usually hired with specific parameters around their employment, including how long they’ll work, what their responsibilities are, and what qualifications they need to apply.

Contingent workers are extremely popular today, particularly when employee preferences have changed over time. Even before the pandemic, this employment category was picking up steam, and it’s only increased since then.

The need for contingent workers has increased for numerous reasons in the past few years. For some companies, it’s a matter of saving money on its labor force, especially if they’re dealing with uneven workloads. Other businesses have structured their entire model around contingent workers, providing flexibility for employees that can’t work a normal schedule. Despite the multiple definitions, there are some key points to understand about how they’re hired, assessed, and paid. No matter what industry you’re in, it’s worth learning the expectations and responsibilities on both sides of the aisle.

Benefits to Hiring Contingent Workers

 

Contingent workers can be drawn to their work for a variety of reasons depending on the individual’s needs and preferences. Some potential benefits include flexibility, variety, independence, skill development, increased diversity, and potentially increased compensation for specialization. As many benefits as there are for the workers, though, there are plenty of benefits for the employer as well.

Quality

 

A contingent worker can be someone who works in a skilled trade or requires no training, meaning you’re paying for quality. Instead of having to invest a certain number of hours on training someone — which often defeats the purpose of hiring an employee at a lower hourly rate — you get someone who can jump right into the role.

The focus is not on the process that the person is taking, it’s the results that they produce. So, instead of having to walk someone through the entire game plan and monitor them throughout, you get exactly what you’re looking for without the hassle.

Convenience

 

Most companies can find contingency workers who are available when they need them most. The catch is that intermediaries are usually the key to capitalizing on this particular. It’s worth noting that you can hire a contract worker directly, and it might be incredibly easy if the economy is in freefall. However, most need a connection to track down workers that fit the bill.

Speed

 

A contingent worker can typically start when you need them to. The right supplier can expedite the search, supply you with a list of candidates, and set up the contract as fast as possible. You can also hire a contingent worker directly. Should the contract go well, you can have a discussion with the worker and then either assign another contract or issue an extension.

This benefit can be a lifesaver when there are skill gaps or hiring shortages. Staffing snags are common in companies, but the ripple effects can be disastrous. One hole in the company can end up crippling multiple departments. A contingent worker can step in on an ad-hoc basis, streamline operations, and keep revenue stable for the company.

Costs

 

While contingent workers may look a little more expensive at first glance, consider how much you’ll save in benefits, retirement costs, and paid time off. Plus, all taxes are managed by the employee, which can save the accounting team and payroll operations some hassle. In addition, contingent workers are non-salary employees. Once the project is done, you no longer have to pay them anymore.

Improved Morale

 

Layoffs aren’t just difficult for those who are cut, they’re difficult for everyone in a company. It can erode the trust between employee and employer and lead people to start looking for another position. With contingency workers, the expectations are set early on, so everyone is comfortable with the arrangement.

 

What are the Different Types of Contingent Workers?

The term contingent worker can refer to anyone in the workforce. From healthcare to data entry, any organization in the world can make use of contingent workers for either one-off or recurring needs. We’ll look at the categories, and the general parameters that define them.

Temporary Workers

A temporary worker is an employee who works with a company for a purpose for a short period of time. While there is no hard-and-fast cut-off for this term (e.g., 3 months), it’s usually under a year and under 1,000 hours.

For instance, a retail employee might be brought in from November to January to help with the holiday rush. Or an accountant might be brought in to complete a complicated internal audit. Temporary workers can be hired directly by the company, or companies can go through temp agencies to recruit and sift through the candidates. It is possible for temporary workers to be hired on as full-time employees based on the tenure of the employee, but it is by no means an obligation.

Consultants

A consultant is a contingent worker hired to improve the direction and strategy of the company, rather than for a specific project. For instance, they might be hired if revenue is slumping or if a company has decided to branch into unknown territory.

So if a formal-dining restaurant wants to establish multiple casual spin-offs in nearby cities, they might hire a consultant to understand everything from the demographics to the zoning regulations in each location. Or if a business has fallen out of favor with their core demographic, they might hire a consultant to understand what’s driving away their customers and whether it’s worth regaining their trust or going after an entirely new market.

Independent Contractors

An independent contractor functions as a sole business entity rather than as an employee. For instance, Uber and Lyft famously hire independent contractors, and those independent contractors are free to work with multiple rideshare companies without repercussions.

An independent contractor can be hired on as a temporary worker or as a consultant, though they may have more requirements based on their designation. For instance, if they have their own LLC, they may need to be paid a certain way or they may require more formalized partnerships. With temporary employees, you’re required to file your payroll taxes, track time, and send out W2s. With independent contractors, you’ll need to send a 1099 if you pay them more than $600 in a year.

 

What to Consider Before Hiring Contingent Workers

 

Compliance & Risk Mitigation to Employment Laws

 

There are certain companies who will take advantage of contingent workers, which has led to a national debate about how to restructure employment laws. Certain states, like California, have already made changes to regulations. If you want to stay in compliance, you’ll need to know how to stay within the letter (and, ideally, spirit) of the law.

 

Flexibility for Workers

 

Contingent workers are ready to get straight to work, but that doesn’t mean there won’t be any unexpected events along the way. Whether it’s an economic change or family tragedy, you’ll want to build in some flexibility to the project. If you’re wholly dependent on one contingent worker, it can be just as debilitating to lose them as it would be a full-time employee.

Few Restrictions on Contingent Workers

 

While contingent workers can be highly skilled professionals (e.g., software engineers, etc.), they don’t have to be. You can hire people for simple tasks like data entry all the way up to your most complex endeavors. Plus, you can have them work either on-site or off, depending on the needs of the project.

Avoids the Need for Layoffs

 

It’s unfortunately easy for companies to overestimate the workforce they need, particularly if they’re in a sustained period of growth. Only when it’s in the rearview mirror do hiring managers realize that they overstepped in terms of full-time staff. When you hire contingent workers, your workforce is much more flexible allowing your headcount to change according to the ebbs and flows of your business. 

Visibility

 

Contingent workers are there to do their jobs, and they’re used to working under the radar. Ideally, you hire them, they finish the work, and then companies can reassess the next best steps. Of course, this doesn’t mean that you’re entirely hands-off.

You need to know who’s working on different projects, where they are, what their role is, and how many hours they’re putting in. This standardization is critical to getting the job done — whether you’re managing on your own or employing a Managed Service Provider.

 

How to Manage Contingent Workers

When there are multiple types of contingent workers, the challenge lies in management. From invoicing to taxes to scheduling to onboarding, even small companies can get lost in the details. If you’re looking for a consultant company with experience in the modern landscape, Monument Consulting is a Managed Service Provider that provides clients with the capacity, support, and advice they need to drastically cut back on risk. If you’re looking for a partner that can find solutions to even the trickiest problems, contact us today to learn more.

In the dynamic landscape of healthcare, Managed Service Providers (MSPs) and Vendor Management Systems (VMS) emerge as powerful allies. These strategic resources empower healthcare organizations to navigate the intricate dance of contingent workforce management. Yet, there are common misconceptions of cost overruns and complexities that give decision-makers pause. In this exploration, we’ll unveil the hidden gems within MSPs and VMS, shedding light on their transformative potential. 

What Is a Managed Service Provider (MSP)?

A Managed Service Provider (MSP) is an outsourced company that specializes in managing a business’s contingent workforce program, including both traditional workforce and staffing agencies. MSPs play a crucial role in handling all aspects of contingent workforce management, such as sourcing suppliers, shortlisting resumes, onboarding/offboarding contingent workers, and conducting rate card market analysis. MSP’s essentially oversee the entire requisition-to-checkout lifecycle for a company’s contingent labor workforce program.

While MSPs can sometimes be an internal, self-managed team within a business, they are more often an independent third-party organization that carries out the tasks outlined above on behalf of the business. This allows the company’s internal team to focus on core business operations and strategic initiatives.

An MSP offers numerous benefits to healthcare organizations, including reduced costs, increased compliance, and improved efficiency. Rather than attempting to handle all aspects of workforce management internally, hiring an MSP allows you to leverage the expertise and specialized skills of true leaders in the field.

MSPs help streamline processes by managing the onboarding and offboarding of contingent workers, conducting regular audits to ensure compliance, and offering strategic insights to enhance program maturity models. They can also assist with consolidating invoicing processes, improving the visibility of contingent workforce metrics, and facilitating adherence to relevant policies and regulations.

By utilizing an MSP, healthcare organizations can focus on their core mission while benefiting from the MSP’s ability to manage various facets of the contingent workforce program efficiently and cost-effectively. Ultimately, MSP performance is assessed based on the quality of work, the time taken to achieve desired outcomes, and the cost-effectiveness of the services provided in relation to the savings realized.

What Is a Vendor Management System (VMS)?

A Vendor Management System (VMS) is a cloud based software that optimizes your contingent workforce process. The right platform doesn’t just provide visibility into your temp workforce, it automates rote tasks and often leads to increased speed to hire. The right VMS can expedite sourcing, onboarding, and paying vendors, which reduces the manual time you are spending on these tasks. 

In healthcare, where traveling staff is often the norm rather than the exception, VMS can increase transparency between the worker and the larger organization. If you are constantly hiring temporary nurses, specialists, or orderlies to fill the gaps, you can expect to fill those roles faster and with less friction.

With a VMS, there are fewer questions about how resources are being allocated. Workers can trust the onboarding process, and vendors can trust they’re going to get paid in full and on-time. This helps you attract more qualified talent, and even save you money over time. It’s a win-win for everyone, especially if you’ve been having trouble meeting your staffing goals.

How Do MSP and VMS Work Together in Healthcare?

In the healthcare industry, an MSP and VMS can work in tandem to provide a comprehensive ecosystem for a healthcare organization’s contingent workforce program. The MSP helps healthcare companies by managing costs, speeding up the process of filling openings and enhancing the quality of the contingent workforce. 

On the other hand, the VMS serves as a tool that brings all these efforts together by offering enhanced program reporting, which drives visibility and insight into the entire program. This collaboration allows for seamless scaling of support, ensuring that whether you are a small clinic or a large hospital, you can adjust the level of support according to your specific needs. The combined efforts of MSP and VMS lead to more efficient and effective workforce management.

Some MSPs, like Monument, will help a healthcare organization choose a VMS as a part of their services. Much like a kitchen designer might recommend a cabinet brand based on the style of the house and the homeowner’s expectations, the goal of the MSP is to find a VMS that can integrate with the current systems.

In this case, an MSP team would configure the VMS and integrate it as a part of your larger systems. Regardless of your current workflow, the right MSP will be able to streamline the process with minimal disruption to the staff.

Choosing the Right MSP and VMS Solutions

While working with an MSP and VMS can greatly benefit healthcare organizations, it’s important to find the right partners to ensure a smooth transition and successful integration. Adapting to system-wide changes and new external teams may present challenges, but the right expertise can make the process seamless.

At Monument, we take a tailored approach, starting with the basics and gradually diving deeper. This allows us to explain how these systems can enhance your healthcare organization and provide insights into the future potential of your network. Contact us today to learn more about how we can support your healthcare organization and help you achieve your goals.

The number of layoffs in the tech industry has been more than just headline-grabbing, it’s caused leaders to rethink how they staff. We’ll look at contingent workforce trends, how organizations are optimizing the latest patterns, and why Managed Service Providers (MSPs) have been on the rise.

Growth in Contingent Labor Force

The growth in the contingent labor force is nothing new. It’s something of a byproduct of the changing times. With people more mobile than ever before, they crave the same flexibility from their jobs. Moreover, an increasing number of individuals are extending their working years. Baby boomers, in particular, are committing to stay active in the workforce beyond the traditional retirement age, contributing to a shifting demographic landscape in the employment sector.

On the hiring side, organizations are starting to see how they can optimize their resources without sacrificing the quality of their results. Instead of having multiple parties work independently, Vendor Management Systems (VMS) and MSPs like Monument can be brought in to organize it all, so there are no dropped balls.

Around 80% of organizations use a contingent workforce of some kind, with about 65% of organizations planning to increase their usage of contingent workers in the near future. These are organizations that may struggle with turnover or they may just have uneven or unpredictable workloads. Regardless of why an organization turns to a contingent workforce, many often stumble onto a more efficient business model. The key is finding the right people to bring it all together.

Remote and Hybrid Workforce Adoption

The tech industry has been one of the most stubborn about coming back into the office, despite everything from incentives to threats from their employers. (It’s clear that there is something lost when people can’t work face-to-face, though the answer to this basic problem is far from one-size-fits-all.) This has led to organizations feeling pressured to find compromises where everyone can thrive.

Monument has seen how contingent workers can be used to improve the results of a remote or hybrid workplace, particularly when the organization is under strain. By providing full-time staff with more resources, organizations can simultaneously improve morale and productivity.

If you’re wondering who’s going to manage it all, the best MSPs have developed a track record of being able to strategize from top to bottom. Whether the question is how much to spend, how many workers are needed, or which suppliers to use, leaders can trust the right MSP to oversee it all.

Technological Trends

Gen AI and intelligent automation are everywhere these days, with companies across all industries at least curious about what it can do for them. This is a controversial subject for some, but it’s also an opportunity to cut down on the inefficiencies that are likely plaguing your employees. Ideally, technology can be used to facilitate the onboarding of a contingent workforce, so the contingent workforce can continue to adjust or add value to the company’s current systems.

Monument has seen clients drown in data, either failing to use it correctly or failing to use it at all. AI has the power to streamline analytics and reporting, but companies that put too much trust into it may inevitably find themselves wishing they hadn’t. If you’re looking for an MSP that has done their homework and successfully applied that research to individual organizations, you can trust Monument to deliver.

Focus on Skills, Not Experience

A contingent worker succeeds and fails by the strength of their skills. Even more than an employed worker, who could conceivably coast in a large organization based on a largely inflated résumé, a contingent worker has a limited amount of time to prove their worth. If they can’t hack it, they may not even make it until the end of the project, let alone be invited back should the organization need them again.

The trends are very straightforward here: if the organization isn’t able to ascertain the true value the worker brings, their entire contingency strategy can be compromised. Monument has helped our clients drill down on the exact expertise they need to fill each role, so there are fewer hiccups along the way. It can be difficult to find people who have the skills, personality, and availability to match the company, but it is possible when you use an MSP with the right connections and reputation within the industry.

Growth of MSPs

Given the contingent workforce we’ve covered, it’s easy to see why a quality MSP would be worth its weight in gold. A contingent workforce comes with a number of benefits, but it also comes with endless questions about how to staff, onboard, train, and wrap up.

The liability alone would be enough to make any employer question whether it was really worth it. MSPs have the expertise to take over even the most unwieldy of projects, finding ways to break down each phase into digestible pieces. They can maintain communication between workers and staff members, ensuring that both sides are on the same page about what’s expected.

When it comes to hiring a workforce, it’s important for organizations to understand not just how contingent workers view the situation, but also where they’re coming from. It’s not about catering to their demands, but about finding a bridge between the two (sometimes competing) objectives. It’s the MSP that can be the go-between, which is why organizations need to find teams that can successfully work with people from every walk of life.

There are a lot of risks for full-time employees on both sides of the aisle. Contingent workforce trends show that employees want to maintain their autonomy, and organizations want to have some flexibility when they’re staffing for major projects.

Contact Monument Today

Since 2003, Monument has been able to lead contingent workforces by focusing on both long-term goals and day-to-day execution. This isn’t a case of micromanaging employees, but about finding people who can commit to the job until it’s done. We manage everything (and everyone) under the umbrella for as long as our clients need us to. Contact us today to see how we can help!

The past few years have brought significant change to the world of employment. Much of the top talent in several industries are choosing to work as gig workers, freelancers, and contingent employees rather than full-time, permanent employees. As much as 40% of the total workforce is now contingent, creating challenges for companies as they try to integrate non-permanent workers into their company. Total talent management (TTM) provides a potential solution to this growing problem.

What is Total Talent Management?

Total talent management takes a comprehensive approach to managing an organization’s talent. In this model, rather than delegating full-time employees to the HR department and part-time or contingent talent to the procurement department, the same team handles all workers. This model breaks down some of the barriers between permanent and non-permanent talent and helps the company maintain consistency with all of its people.

Including both Employees and Non-Employees in the Talent Pool

Today’s organizations rely increasingly on freelancers and gig-economy workers to help bring in talent that they don’t necessarily need full-time. Sometimes, aligning this contingent workforce with the business’s strategies and philosophies is challenging when managed separately from the full-time employees.

The goal of TTM is to align the total talent, including these non-employees, with the business strategy and manage all types of labor in the same way. Having a mix of employees and non-employees allows for greater flexibility in resource allocation. Non-employees can be brought in for specific projects or tasks, providing the company with agility to scale up or down based on workload and requirements.

Embracing the Full Talent Cycle

TTM embraces the full talent cycle, including talent acquisition, talent development, performance management, workforce planning, and succession planning. Rather than having one department that brings people into the company and another that works on keeping them productive in their roles, TTM encompasses all of these roles into one talent management model.

Measuring Progress Using Tech and Analytics

A final component of TTM is the use of technology and analytics to measure the progress of the company’s talent. Today, numerous HRIS and VMS’s now offer combined TTM solutions. This component helps ensure everyone is working toward a mutual goal and helps the organization increase performance. By measuring progress and outcomes consistently across all talent, the company can potentially save money and increase profits.

4 Benefits of Total Talent Management

Successfully implementing a total talent management strategy will help your company maximize the effectiveness of each of your workers, regardless of employment status. This brings several distinct benefits, including:

1. Greater Visibility and Control of Workforce

Seeing the people on your team is easier with a TTM approach. Greater visibility means a better understanding of the spending done by the workforce, whether contingent or full-time. A TTM approach keeps top-tier talent easily accessible, even if they are not full-time employees. Using contract or gig workers can also reduce the workload on the full-time talent, which improves productivity across the board. Having greater visibility combined with greater control can help save money by ensuring spending across all workforces is seen and tracked.

2. Flexibility to Adapt to Changing Business Needs and Market Conditions

The TTM approach is agile, which means you can move people as needed to ensure the talent is in the right roles at the right time. Because a brand is not limited to the traditional hiring techniques other companies use, they are able to make strategic decisions about acquiring talent and getting the right people in place as quickly as possible when needs or market conditions change.

3. Focusing on Value, not Status

One of the drawbacks of traditional HR-based hiring models is the focus on the status of the employee as full-time vs. part-time or contingent becomes paramount. With TTM, the focus shifts to the value the individual brings to the company, regardless of their employment status. When people are honored for that value, they are better able to contribute their unique skills and expertise, leading to a more productive and collaborative work environment.

4. Strengthening of the Employer Brand

A non-traditional workforce allows you to produce better products or services for your clients. Not only does this improved product or service strengthen your company’s brand, but being able to integrate both contingent and permanent workforce into your daily operations smoothly shows that your business is an employer of choice in a crowded field. This, in turn, can help you acquire even more top talent because your company will stand out among the workers you want most.

What are the Challenges of Total Talent Management?

Integrating a contingent workforce with traditional, full-time employees is not always a seamless process. Like any hiring or talent management model, TTM does have some challenges.

Difficulty of Implementation

First, implementing TTM is complicated. Companies require specialization to be able to implement a TTM plan well. Many choose to partner with a talent consulting firm to help set up their TTM strategy effectively and utilize the specialized knowledge of the workforce consulting firm.

Need for Strategic Partnerships

For a TTM system to work, the HR and procurement departments must work together closely and build a strong partnership. If the business is benefiting from a managed services provider to assist with contingent talent, they also need to roll that into their TTM. In addition, any stakeholders in the company must be on board with the plan. All parties’ responsibilities must be clearly laid out and followed, or the system will not work.

Requirement of the Right Tech

Finally, TTM requires specific technology to manage and evaluate the various team members, both non-employees and employees. For example, brands may need to use a freelancer management system to keep track of the work of contractors and freelancers. This technology may be different than what is traditionally used by HR departments, so there is a learning curve and an investment involved. Partnering with a managed services provider that knows these technologies and then integrating the MSP into the TTM planning can help.

Working with an MSP Consulting Service Can Help

What is total talent management? For many companies, it is the solution to keep all of their team members unified and pushing for a common goal. Yet it is not always easy to implement. That’s where consultants come in.

 

As companies strive to improve their branding, streamline their hiring processes, and reduce their costs, the need for professional consulting services is clear. Monument Consulting offers Consulting Services to help companies implement, manage, and support contingent labor. Our MSP consulting services can easily tie into a TTM program to bring all of your talent to the same page.

If you are looking for help with TTM, reach out to us to learn more about our MSP consulting service