A contingent workforce program speaks to a business owner’s need for efficiency, though the reality of these programs are often far from the imagined ideal. This is partially because common metrics often fail to account for multiple external factors and partially because organizations simply don’t have enough information to evaluate their strategy in the first place.

If you want better returns, integrating additional data can have a major impact on how much value you derive from a contingent program. We’ll look at what’s measured, how to use it, and which tools you can use to collect it.

Intro to Data in Contingent Workforce

All companies have plenty of data to work with, whether it’s observed data of worker behavior or hard data vis-a-vis final project completion. Measured data for a contingent workforce typically includes the following:

• Number of workers: It’s not just how many non-employees are working on the project, but how many are working on any given day across your entire organization. 
• Suppliers: If you have more than one supplier for your workforce, you need to track their performance, rates, and how much they’re contributing to the bottom line.  If you have one supplier, you’ll need to weigh worker output against the cost of each hire. More data will make it possible to secure the best workers for the best price.
• Timing: When it takes weeks to find a person for a time-sensitive position, you sacrifice the agility that a contingent workforce was supposed to account for. When you have more data available, it’s easier to estimate project completion — particularly if you need highly-skilled professionals.

The major challenges with these multiple moving parts appear when collecting this often disparate data and attempting to figure out how each piece fits in context with the others. Developing a data strategy and utilizing the right tools and systems to help interpret the data will have a marked effect on your final outcome.

Logistics with Data Usage

When it comes to the logistics of data usage, most business owners find themselves using data retroactively instead of proactively. Trend information is important, but best-in-class programs are able to use data to help identify rocky water ahead prior to those waves crashing. Proper analytics can help business owners stay on budget by leveraging data to ensure the right contingent workers are being utilized and to identify who are making the most contributions to the bottom line. 

There’s more to data usage than pure cost savings, though. Business owners can also use data to grow an organization, particularly if they’ve had trouble scaling in the past. Data makes it possible to find reliable solutions that will work as well in a pinch as they do for carefully planned initiatives. It’s also a veritable lifesaver for SOW management. You’ll not only know who is working on what, but you’ll also know when certain tasks are falling behind. Faster intervention leads to fewer conflicts, revisions, and hard feelings.

Business Strategy Usage

In addition to the operational and logistical benefits, data usage plays a pivotal role in shaping the business strategy of a contingent workforce program. By leveraging data effectively, organizations can make informed decisions and drive overall success. Here are key aspects of business strategy where data usage proves instrumental:

• Scalability and Growth: Scaling a contingent workforce program requires accurate information to overcome challenges effectively. Data analysis helps businesses understand program performance, identify growth opportunities, and adapt to market demands by determining the ideal size.
• Risk Mitigation and Cost Optimization: Data-driven decision-making in contingent workforce management helps businesses mitigate risks and optimize costs by identifying inefficiencies and areas of high expenditure. This enables organizations to renegotiate contracts, improve supplier selection processes, and optimize resource allocation, resulting in substantial cost savings without compromising quality or productivity.
• Strategic Workforce Planning: With the help of data, organizations can strategically plan their contingent workforce to meet future demands. This enables proactive talent acquisition, addresses skill gaps, and facilitates targeted training programs to enhance workforce capabilities.
• Performance Evaluation and Partnership Optimization: This data empowers businesses to conduct objective performance evaluations of suppliers and workers, enabling them to identify top performers and optimize their contingent workforce ecosystem. By comparing key performance metrics against established benchmarks, organizations can strengthen valuable partnerships while swiftly terminating underperforming ones, resulting in cost reduction and improved decision-making.

Day-to-Day Operations Use

There are a lot of reasons to think of data much like you would any other product. The importance of data in a contingent workforce program represents a key shift from instinct-driven cultures, and it means finding ways to maximize the asset just as you would any other.

• Cycle time: Accurate cycle time estimation is tied to everything from non-employee requisition submittal, time to interview, worker selection, to final returns. Managers need to evaluate how much time is needed for different milestones in the cycle so they can set proper expectations on how quickly a worker can start once a requisition is submitted. This is the only way to streamline the contingent workforce process. 
• Contractor management: It’s easiest to coach when you can measure. Better daily data can help identify areas of excellence and areas for improvement for each contractor in your organization. 
• Market comparative analysis: From rates to market trends, daily data can be used to assess how supply and demand is fluctuating from day to day. Proper rate analysis can reduce the number of unpleasant surprises for your contingent workforce, and market trend analysis can help you prepare for changing needs in your industry.
• Supplier organization: While you may only have so much control over a third party, better data can show you where the cracks are. Whether you’re overpaying or facing multiple missed deadlines, more information means stronger performance evaluations, so you can make better decisions.

You Need the Proper Tools

If you’re wondering how you’re going to keep up with all of this analysis in the midst of the rest of your workload, it may help to know there are automation tools available. A vendor management system (VMS) is designed to take care of the daily drudgery that can easily fall by the wayside when you’re in the thick of things. For all the data flowing through your many processes, you can harness and leverage it to build stronger operations.

You can also consider how a managed service provider (MSP) would find creative solutions based on your organization’s needs. The importance of data in a contingent workforce program cannot be overstated and neither can the systems, tools, and labor it takes to put it all together. An MSP is used to the intricacies of contingent workforce management, particularly as it relates to their clients’ data and metrics. If you’re looking for a team that will strip down the data to what you need to know, Monument Consulting can help you see the big picture so you can reduce the time, money, and energy you spend on your contingent workforce.

At its core, direct sourcing is a strategy where a company begins to look toward an internal candidate pool as a potential source for temporary employees. While every organization is a bit different, a direct sourcing environment usually has three basic elements: a technical solution that is used to get the aforementioned candidates into the recruiting funnel, a process or strategy to then curate those candidates, and compliance.

Examples of how direct sourcing is used include tapping into employees who may have recently retired, those who are “silver medalists” in that they may not have been selected for a previous role but are still viable, and those who have been referred by others.

 

Why Use Direct Sourcing?

 

All told, direct sourcing brings with it a wide range of different benefits that cannot be ignored. Maybe the most immediate of these is that a business gets to use the power of its strong employer brand to not only attract top talent for an available position but to retain them as well.

This also gives them the ability to get someone into an available role as quickly as possible, which in turn allows them to start performing faster than would be traditionally possible. In other words, by leveraging an internal candidate pool, companies can potentially reduce the time and resources required to identify and recruit suitable candidates.

Other benefits include the fact that direct sourcing gives businesses access to known, proven talent (as opposed to requiring them to go searching for them), along with the fact that they are already well aware of a candidate’s experience within the context of the position that needs to be filled.

 

Benefits of Direct Sourcing

 

In a larger sense, direct sourcing can save your business time. By filling available positions quickly, it decreases the amount of time it takes for those positions to start being productive and generating revenue. Direct sourcing also can be a viable way to drive cost savings across the board. This is especially important given an organization’s current rate structure. 

From the point of view of the client, another benefit of direct sourcing is that it helps significantly improve worker quality. The people you’re tapping into are already familiar with your organization, therefore they can “hit the ground running,” so to speak. You have a robust pipeline of pre-identified candidates to draw from, which also comes with the ability to redeploy known talent in a way that makes sense given your current goals. The productivity gains that come with this alone can be enormous in most situations.

From the perspective of the candidate, direct sourcing is also a great way to continue to build a long-term relationship with the client. It’s access to an opportunity that they might not otherwise have if they were on the outside looking in, which can be a potential chance to further their career. It also gives them the ability to work and be productive in a known environment, as opposed to “starting over” with a new employer. It’s also a way to choose positions that they’re inherently interested in, which can be a way to drive their commitment to the workplace as well.

 

Principles of a Direct Sourcing Program

 

Generally speaking, there are five main principles of any viable direct sourcing program to be aware of. They include:

 

• Strategy: Businesses need to utilize their brand to build a talent pool that may include retirees, referrals, recruited talent, and more.

• Technology: A digital platform is required to create talent pools by leveraging ATS, HRMS, and VMS systems.

• Curation: Candidates need to be managed in a way that connects the right people with the right open jobs through curators, such as Monument Consulting.

• Payroll: A payroll provider is also required to act as the employer on record (EOR) for any temporary workers on assignment.

• Redeployment: Finally, businesses need to be able to quickly redeploy known workers who can begin immediately and excel quickly, thus reducing the time to fill available positions.

 

Timelines for Implementing Direct Sourcing

 

Again – every organization is different, which means that the timeline for direct sourcing can and will often vary wildly. Having said that, direct sourcing implementation typically takes between 13 and 18 weeks. Through Monument Consulting, this includes a program readiness assessment of the current program, strategy, goals, and best practices.

During this period, there will also be a review of a business’ technical operations and procedures to help make sure that all technical configurations, integration requirements, and financial resources are being met. Based on what you discover, various teams can be set up for operations, training, and a larger program office.

At this point, a technical build can proceed. This can include setting up and configuring client instances, branding, VMS integration, job board integration, and other key factors. Once completed, testing and a complete user training program can be conducted.

Finally, a candidate campaign and a proactive marketing strategy can be developed that includes social media, various recruitment sites, and an effective email campaign.

 

Ingredients for a Successful Direct Sourcing Program

 

In addition to access to known talent and client branding/marketing efforts, ingredients for a successful direct sourcing program include:

•  Buy-in from all key stakeholders. That includes at the executive level and in terms of talent acquisition, marketing, legal, and even business users.

•  Program ownership and accountability, especially from those at the top of the organization and with regard to team leaders.

 

Key Success Factors

 

One of the key success factors for any direct sourcing program involves the ability to identify skill sets to source via this channel. Businesses also need to drive volume through the direct sourcing channel to promote healthy activity.

Overall, success depends on your ability to provide “preferred” status to direct sourcing channels for release and distribution. A client’s brand will also need to be leveraged and an internal careers page should be created. This will go a long way towards attracting the largest pool of potential candidates to each open position – which in and of itself is the most important benefit of all.

If you’d like to find out more information about whether you should be utilizing direct sourcing contingent labor, or if you’d just like to discuss your own situation with a professional in more detail, please contact the team at Monument Consulting today.

Companies today have to be more flexible than ever before. While the markets have always moved quickly, the pace in the digital age has undeniably ramped up. It’s led to decision-makers having to become more creative about who they hire and why.

What is a contingent worker? Contingent workers are not permanent employees of an organization, but instead work on a temporary or contract basis. Contingent workers are hired to perform specific tasks or projects for a limited period of time, and may be brought on board to fill a gap in the workforce to provide specialized expertise or to address a short-term staffing need. Contingent workers may include independent contractors, temporary employees, freelancers, consultants, seasonal workers, and other types of non-permanent workers.

 

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.

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.

 

Types of Contingent Workers

 

In the gig economy, there are more examples of contingent workers than ever before:

• Independent contractors
• Freelancers
• Consultants
• Temp workers
• Gig employees
• Non-payroll
• Outsourced employees
• Indirect labor

While there are a number of designations for contingent workers, the IRS largely lumps everyone in the same category. So even if a freelancer traditionally works fewer hours than an independent contractor (on average), the basics remain the same. How you choose to label your contingent workers will likely depend on the nature of the project, the employees you’re planning to hire, and the timeline.

 

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.

 

Managing Contingent Workers with Monument

 

If you’re wondering how to fit contingent workers in with the rest of your workforce, sometimes it helps to talk to a specialist. Monument Consulting helps companies navigate the tricky landscape, so no one finds themselves in hot water down the line. We’re here to not only answer questions but ultimately take some of the burden off your shoulders. Contact us today to see how we can help you get more done.

Generally speaking, a business will leverage a wide range of different resources in order to effectively manage its contingent workforce. This is especially true of those organizations that are in the process of rapid expansion, reorganization, or restructuring of third-party talent.

If your business is in this position, you may have seen two terms regularly used in your research: MSP and VMS. But what are the differences between an MSP vs VMS, and how do they both ultimately contribute to the same larger whole? The answers to those questions require you to keep a number of important things in mind.

What Is an MSP?

Also commonly referred to as a Managed Service Provider, an MSP is a term used to describe a team of people who are singularly dedicated to managing all facets of the contingent workforce program on behalf of a business. This includes essential functions such as supporting the sourcing of suppliers, shortlisting resumes, onboarding of contingent workers, and rate card market analysis – essentially helping to manage the entire req to check lifecycle for a company’s contingent labor workforce program.

Note that in some situations, an MSP may be an internal team of people that is self-managed by the business. More commonly, however, this is an independent, third-party organization performing tasks like those outlined above.

The responsibilities of an MSP will vary and are indeed typically tailored to meet the unique needs of a business. Having said that, examples can include but are not limited to things like:

• Program management.
• Reporting and tracking.
• Supplier selection.
• Negotiations and management.
• The day-to-day management of requisition processes.
• Managing invoices.
• Payment reconciliation.
• Rate benchmarking.
• Business intelligence.
• Regulatory guidance and compliance.
• And more.

Note that an MSP will also act as a kind of “command center” for all third party talent within an organization.

There are many benefits that an MSP will bring with it, chief among them being reduced costs. In many situations it may be easier to hire someone else who specializes in these aforementioned functions than it would be to tackle them yourself. An MSP allows you to bring in true experts and leaders in the field without the costs of building that knowledge in house. Another benefit of an MSP is increasing compliance and decreasing risk. This is primarily done through MSP management of the onboarding and offboarding process, as well as frequent audits. This expertise also helps to significantly streamline processes, which improves productivity across the board.

Enlisting the services of an MSP can also help with the implementation of management strategies, along with making meaningful changes to the ones that are already there. MSPs can assist with program maturity models, the visibility of contingent workforce metrics, they can help consolidate the invoicing process, and more. They can also help make sure that all contingent workers are in compliance with all relevant policies, procedures, and laws.

Note that regardless of the unique needs that an MSP is filling, their performance will still be measured based on the same core metrics. Those are the quality of the work that they’re performing, the amount of time it takes them to reach a desired outcome, and the cost of their services relative to the amount of money they are ultimately saving the business.

What Is a VMS?

A Vendor Management System (also commonly referred to as a VMS for short), on the other hand, is a term that refers to the technology that supports the daily operations of a workforce program. It also involves the data that travels throughout a business’ essential processes, all based on an SaaS (software-as-a-service) model.

The responsibilities of a VMS include but are not limited to capturing day-to-day action in a contingent workforce lifecycle. This might involve tracking the process of identifying a need and/or request, assistance with the overall hiring process, managing the onboarding and offboarding processes, invoicing, assisting with payment processes and more.

One of the major benefits of investing in a VMS includes creating a higher level of visibility into mission-critical data, which in turn brings with it robust reporting capabilities. Organizational leaders will no longer have to wonder about the who, what, and where questions as they pertain to a contingent workforce pool. They will know, beyond the shadow of a doubt. This almost immediately brings with it the opportunity to identify areas for cost savings and efficiency improvements that would have likely otherwise gone undiscovered. After a period of time, it allows for forecasting and trends to be easily spotted, giving the user the ability to front run any problems that might be coming.  It also helps to avoid compliance and risk-related issues, too.

How Do MSP and VMS Differ?

While a Managed Service Provider and a Vendor Management System are both invaluable parts of a contingent workforce program, they’re two totally separate ideas and should be treated as such. An MSP refers to the team of people, while a VMS is the technology they use. For a very simplistic example, an MSP would be the contractor you hire and the VMS would be the tools he or she uses to build a house. Both have the same goal – building the house – but they’re totally separate in the larger scheme of things. Often, an MSP is brought on as a consultant to help pick the VMS; much like the contractor would recommend what building materials to use to build the house.

To that end, an MSP and a VMS work together in partnership to create a smooth, simple connection between the user (like the hiring manager, for example) and the suppliers and/or vendors that they’re working with.

Companies can use both an MSP and a VSM to manage their contingent workforce. Or, they can self-manage with only a VMS by their side. Which of these two options is the most appropriate will ultimately come down to the organization and the unique needs that it is trying to accomplish.

Founded in 2003, Monument Consulting is built on a commitment to our clients and our shared values. Through our genuine passion for delivery, relentless pursuit of perfection, and bold decision making, we are creating a more agile contingent workforce so businesses can dream bigger, receive the benefits they need, and achieve more. Our expertise is proven, and we’ve worked with a suite of Fortune 500 companies to help implement innovation that lasts. Our agile model allows us to pick the best tool(s) based on the flows and gestures that will truly meet our client’s needs and bring them the best outcomes.

If you’d like to find out more information about what the major differences are between a Managed Service Provider and a Vendor Management System, or if you just want to speak to a professional about your own needs in a bit more specificity, contact us.

The SAP Fieldglass Vendor Management System (VMS) is a powerful tool which allows your company to coordinate external workforce programs. Companies of all sizes leverage the Fieldglass tool to drive efficiency, reduce costs and gain productivity.

When implementing Fieldglass, it’s critical to have a defined process that helps your employees, leadership and key stakeholders understand a clearly defined road map. A well thought out SAP Fieldglass implementation process, with well-defined stages and milestones, will help track progress and guide all participants towards the shared goal of a successful launch.

 

What is SAP Fieldglass?

 

SAP Fieldglass is a cloud-based system used to find, connect with, manage and pay an external workforce. With the rise of the gig economy and contract workers, there is an ever-increasing need for systems to manage, coordinate, align, and integrate this component of the modern workforce.

 

According to SAP, 42 percent of the workforce spend today is on external workers. A recent survey also reported:

 

• 73 percent of respondents indicated an external workforce was important to operating at full capacity and meeting demand
• 55 percent said that without an external workforce, their organizations could not conduct business as usual
• Only 20 percent had the systems necessary to adequately manage external workers and turn off access at the end of a project

 

What does Fieldglass bring to the table? Its solutions provide various tools to help manage an external workforce, including:

 

• Contingent Workforce Management: Allows enterprises to find, manage and pay external employees, automating management to streamline processes, improve security, and boost productivity
• Services Procurement: Source, manage, and pay external service providers, including contractors, consultants and agencies
• Worker Profile Management: Track and manage workers not covered by a Statement of Work or a job posting
• Assignment Management: Manage external work assignments across multiple projects to improve cost controls, efficiency, and compliance

 

The Monument Consulting Approach to SAP Fieldglass Implementation

 

For the most effective SAP Fieldglass implementation, Monument Consulting uses a well-defined methodology. With distinct, articulated phases and gates, our strategic implementation plan provides a clear path for all members of the implementation team. The methodology continually lays out where the project stands and what needs to be done.

Each client’s situation is unique, and the methodology for SAP Fieldglass implementation is flexible to allow for efficiency and progress at each stage. At its core, our methodology is designed to ensure Monument Consulting knows the current state and the desired outcomes of the implementation. That knowledge allows our consultants to design a customized implementation solution that meets our clients’ goals and delivers.

While each client’s circumstances will vary based on scope, resources, and time, in most cases the SAP Fieldglass solution can be implemented in 21 weeks. Success depends greatly on the client’s ability to engage the right stakeholders to ensure that buy-in, sign-off, communication and engagement are all managed carefully at each phase. Engaging the right stakeholders early and at predefined intervals minimizes the need for rework, which can have an impact on the overall project timeline.

 

What Are the Stages of SAP Fieldglass Implementation?

 

There are six phases to the Monument Consulting implementation methodology. Each phase has a gate assigned to it that corresponds to a key project milestone. The gate is designed to ensure that decisions are made whether to move to the next phase, continue work on the current phase, make necessary changes to the current phase before moving forward, or putting the project on hold.

Here is a closer look at each phase and gate.

 

Pre-implementation

 

The pre-implementation phase involves discovery, where the Monument Consulting team works with the client team to understand the current state of systems, technologies and desired outcomes. Critical to this phase is understanding the pain points – whether it’s decentralized workforce management, out-of-control workforce costs or a need for more efficiency. This is the first step towards developing a cohesive project plan that delivers desired results.

In the first three phases of the project, there are a few key milestone meetings to facilitate the transition from project start to discovery and pivoting into design.

 

Discovery

 

This SAP Fieldglass implementation phase helps to reduce risks, identify opportunities to enhance the program and develop a cohesive road map. In this phase, the project team researches, collects and assesses information about the program, the current state, and the desired future state.

The discovery stage allows consultants and the project team to determine the goals, vision and possible risks. It helps define the architecture and approach needed for project success. This phase involves analyzing data, understanding interdependent systems, interviewing managers and key stakeholders, and establishing priorities.

 

Design

 

The design phase is where the future state begins to take shape. This phase includes numerous session attended by the client’s full project team where they will be stepped through detailed future state wireframes and see the solution come to live via SAP Fieldglass demos that have been configured per the working future state requirements. 

The design phase offers the client an opportunity to provide final input before requirements are documented and finalized. The client will be asked to sign off on requirements to close out the design phase. 

 

Testing

 

Once the SAP Fieldglass implementation solution has been designed and the requirements have been signed off, testing will be the next key step. Monument Consulting will execute extensive testing of the VMS followed by System Integration Testing with the client to ensure all established feeds are working as expected. Testing closes with an opportunity for select client users to test the VMS solution via User Acceptance Testing.

 

Launch

 

When testing concludes, the new Fieldglass configuration is moved from a testing environment to a production environment. The launch phase is an exciting time, the culmination of months of hard work and dedication.

Integral to the process of any new system is change management. Employees, vendors, and stakeholders will need to understand and become familiar with new technologies, systems, and procedures. Data migration may change. Suppliers may need to be onboarded. Each of these steps is essential for sustained success and buy-in.

 

Hypercare

 

Monument Consulting recommends a hypercare period of 2-4 weeks after go-live with a 90-day stabilization period thereafter. This time helps ensure everything is working as designed, the team has a chance to work out any links and teams can analyze program results. It helps to identify optimization recommendations and reach a state of stability before any changes are implemented.

With Monument Consulting, you can develop a powerful solution that helps manage external workforces. To learn more about our services, contact us today.

Now, more than ever, people prefer more flexible forms of employment as opposed to the traditional workforce model. The concept of the contingent workforce is one that has become increasingly popular – especially over the last decade. A contingent workforce is one that is made up of freelancers, independent contractors, and consultants who are hired for either a specific amount of time or on a project-by-project basis. There are no illusions that these workers will stay with a company on a permanent basis – instead, the opposite is true. They are temporary positions that can pay well and are important, creating a mutually beneficial situation for all parties involved.

What is Contingent Workforce Management?

A contingent workforce is one that can certainly bring advantages to any organization – but the management of the contingent workforce is equally important. With the right approach and long-term strategy, companies will be able to enjoy all the benefits of this process with as few potential downsides as possible.

There are many elements that make up the contingent workforce management process. Simply put, contingent workforce management is the hiring and managing of temporary employees. Organizations will typically pair a managed service provider (MSP) with a vendor management system (VMS) to manage their contingent workforce process. The MSP works with each of the client’s vendors to ensure all open positions are properly recruited for, and the MSP works with the client to ensure management of the contingent workforce is done compliantly.

Why is Contingent Workforce Management Important to a Business?

More often than not, contingent workers are brought into a business via MSP recruitment with the help of a third-party agency or supplier. In this situation, the supplier would be the worker’s employer of record. The employee does not technically work for the business in question – they work for the agency and have simply been assigned to a specific job for a specific period of time.

All of this also helps to underline the idea, and the importance, of contingent workforce management. These types of workers play an invaluable role in the narrative of any business, but they still require a steady hand in terms of management to ensure that everything flows as smoothly as possible. Contingent workforce management helps to keep permanent employees separate from temporary employees, thus allowing workers to fill the exact position that is required of them at precisely the right time.

When it comes to the effective management of a contingent workforce, there are a number of important things to keep in mind. Foremost, a contingent workforce can quickly assist a business scale as it continues to grow and evolve – or better position the business to account for seasonal fluctuations that are inherent in certain industries. With a permanent workforce, it’s harder to respond to market fluctuations quickly. If you don’t have a certain degree of foresight, you’ll end up at a disadvantage more often than not.

Of course, none of this is to say that effective contingent workforce management isn’t without its fair share of challenges. Yes, employers are able to effectively scale their workforce up or down as an ever-changing situation dictates it. But at the same time, human resources teams aren’t just managing the employees themselves – they’re also managing a relationship with the company who supplied those employees as well. Therefore, things become challenging in that the client doesn’t necessarily have the same level of oversight that it normally would.

Contingent workforce management can be made easier with the following a few key best practices. Finding the right partner for contingent workforce procurement can mitigate challenges that arise when managing your contingent workforce. The right partner will understand what the client is trying to accomplish, and is every bit as invested in its own success as they are.

From a technology perspective, a vendor management system is highly – one that allows organizational leadership to effectively manage the various sources that these contingent employees are coming from. With a strong vendor management system, the client can easily manage and locate their contingent workforce.

Lastly, the help of a managed services provider (MSP) will also be recommended to bring these contingent workers together with the more permanent workforce, allowing them both to become something stronger as a collective than they ultimately would have been able to achieve on their own. That will in turn help not only the employees, but the business itself.

Benefits of Contingent Workforce Management

In order to understand the finer points of a contingent workforce, we must first come to a better understanding of what it is acting as a viable alternative to. In the vast majority of situations, a business will hire all of its employees as part of an in-house workforce. Those employees officially work for the business itself. They are paid some type of yearly salary or, in the case of some positions, an hourly wage. This results in a mutual understanding between both the employee and the employer that the worker will hold the position for a significant amount of time. In addition to the terms of employment, workers who fall under this category also receive the option for additional benefits such as healthcare, paid time off, and retirement benefits.

A contingent workforce comes with numerous advantages for the employee and the employer. These benefits include increased flexibility, fewer costs, and access to high-quality, in-demand talent. Organizations can fluctuate their contract labor numbers depending on their business demands, resulting in fewer layoffs, lower costs, and worker flexibility.

• Increased flexibility

a. A contingent workforce can provide organizations with the flexibility it needs to rapidly scale up or down depending on business needs without delays associated with full-time employees.

• Cost-effective

a. Although contract workers often have higher salaries than full-time employees, organizations do not have to pay the contingent workforce medical benefits, vacation time, or sick pay.

• Training

a. Organizations save time and money with a contingent workforce. Contract workers are highly specialized – they do not require a significant amount of training.

Challenges of Contingent Workforce Management

Although a contingent workforce provides an organization with an abundance of advantages, contingent workforce management also comes with its fair share of disadvantages. Some of these challenges may include difficulty with compliance, job security, training restrictions, and communication barriers.

• Non-compliance

a. Contingent workforces often include a network of vendors – this makes compliance more difficult with a contingent workforce.

• Job security

a. Contingent workers have limited job security due to being hired based on business demands. This may result in contingent workers being less committed to the organization.

• Training restrictions

a. Contingent workers may not have access to corporate training resources that are available to full-time employees.

• Lack of understanding the arrangement

a. The end date of the contingent worker’s contract is not always set in stone. Because of this, contractors may feel led on once their contract has come to an end.

Monument Consulting Can Help

Founded in 2003, Monument Consulting is built on a commitment to our clients and our shared values. Through our genuine passion for delivery, relentless pursuit of perfection, and bold decision making, we are creating a more agile contingent workforce so businesses can dream bigger and achieve more. Our expertise is proven, and we’ve worked with a suite of Fortune 500 companies to help implement innovation that lasts. Our agile model allows us to pick the best tool(s) based on the flows and features that will truly meet our client’s needs and bring them the best outcomes.

If you’re looking for a partner who’s ready to help, contact us.

At its core, supplier onboarding involves an organization collecting the information needed to set up a third-party as a supplier or vendor for their own supply chain. An integral part of supplier onboarding is ensuring the prospective supplier complies with the laws, regulations, and standards required by your organization.

Before you begin the supplier onboarding process, it’s important to verify whether or not there are existing suppliers within your current supply chain that can be leveraged to meet your needs. Awarding business within your current supply chain will not only help strengthen your existing supplier relationships, but it will also increase the speed of delivery for the task at hand. If you’re unsure whether or not your current supply chain can address your needs, a GAP analysis can be performed to verify if bringing on a new supplier is the right step to take.

If you determine a new supplier is needed, vetting the new suppliers will be crucial to identifying the right partner to move forward with. You need to make sure any partner that you’re considering entering into an agreement with can truly meet your deliverables. To properly vet the suppliers, you should request they complete a Request for Information (RFI). The RFI will determine if this supplier can meet the needs of your client – if the supplier is not a good fit at this time, create a profile for them to store in your database.

 

When is Supplier Onboarding Necessary?

There is a gap or a need your current supplier pool is not filling, but should you immediately look for a new supplier? You may believe a larger supplier pool is the best option – but in reality, a larger supplier pool may dilute your results. When a problem arises, analyze your current supplier pool first by performing a GAP analysis.

Performing a GAP analysis is an integral step in determining whether or not you need to onboard a new supplier. This will either validate that your organization does have a gap within your current supplier base or determine that your gap can be addressed through your current supplier pool. If you can’t solve your problem among your current supplier list, draft an RFI that centers around the issue you are trying to solve, and request suppliers provide the needed information to solidify that they can meet this demand.  Send the RFI to your prospective supplier base – the responses to your RFI will allow you to determine which supplier(s) are capable of addressing your issue at hand.

The vetting process is an integral part of successful supplier onboarding. Vetting is the process of diligently investigating your prospective suppliers prior to moving forward with a partnership. You must collect details from the RFI to determine if the prospective supplier will fill your gap or need. If you determine the prospective supplier is not capable of addressing your issue at hand, create a profile for them to store in your data base. Monument Consulting has an abundant list of suppliers and the needs that they support – creating this database is very useful for when a client comes to us with a gap in the future.

 

Why is Supplier Onboarding Important?

Implementing a supplier onboarding process is the premise of building strong partnerships with your suppliers. Not only will it strengthen your business relationships, but it will also assist your organization to mitigate risks, streamline processes (similar to a VMS), increase efficiency, and ensure compliance within your organization’s internal and external policies and regulations.

While the supplier onboarding process takes time, it is important to ensure all suppliers are fully compliant in order for your organization to minimize exposure to risk. Your hiring team may be eager to fill roles, but it must be done in a compliant manner with a deep due diligence process. Steps you may take to ensure supplier compliance include, but are not limited to, determining their financial health, verifying they have the right level of insurance, and processing a background check.

Although business needs may urge you to fast-track supplier onboarding, missteps in the process can cause business disruptions and impact your current supplier partnerships. To mitigate this, a standardized onboarding process can ensure all requirements are met to form a successful partnership.

 

The Key to Successful Supplier Onboarding

If through your GAP analysis, CW Readiness Assessment, and vetting process you’ve determined that moving forward with a new supplier is the right next step, there are several processes to follow in order to achieve successful supplier onboarding. Below are the main steps you’ll need to ensure the process flows smoothly.

1. Document your approval process
   • Before you build your supplier onboarding process, you should establish clear approval policies. Determine who from your organization needs to approve the onboarding of a new supplier, gather the necessary approval in writing, and store the approval per your compliance requirements.
2. Establish onboarding requirements and expectations
   • Outline your program’s supplier onboarding policies, procedures, and systems. Clearly outlining your requirements and expectations will not only allow your company to easily vet and approve appropriate suppliers, but it will also ensure the prospective suppliers are compliant with your regulations.
3. Establish a communication and training plan
   • As you develop your onboarding process, communication and training must be highly considered. This will increase efficiency, reduce the risk of human error, and strengthen supplier relationships.

Proper supplier onboarding also helps to ensure the supplier understand the rules of the program before they start. Together, examine the rules of engagement and the rules of the program; Define every document that needs to be filled out. As suppliers return the requested documentation, assign a member of your team to be accountable for ensuring each document is filled out completely and accurately. By auditing documentation as it is submitted, you will help mitigate risk of missed information which can result in impacts to your deliverables down the road.

 

After Onboarding

Once you have successfully onboarded your new supplier, your organization must ensure the supplier is fully prepared to support the client. To do so, you must provide training and orientation sessions to ensure your new supplier has all of the information necessary to successfully support your client. You will need to conduct a high-level introduction between the supplier and the client by setting up introductory meetings between the supplier and procurement, HR, management, and other appropriate client resources. Once the supplier has started supporting your client, begin tracking the performance.

Founded in 2003, Monument Consulting is built on a commitment to our clients and our shared values. Through our genuine passion for delivery, relentless pursuit of perfection, and bold decision making, we are creating a more agile contingent workforce so businesses can dream bigger, receive the benefits they need, and achieve more. Our expertise is proven, and we’ve worked with a suite of Fortune 500 companies to help implement innovation that lasts. Our agile model allows us to pick the best tool(s) based on the flows and features that will truly meet our client’s needs and bring them the best outcomes.

If you’re looking for a partner who’s ready to help, contact us.