Maintaining full visibility of your non-employed resources, and being able to ensure that the contingent or non-permanent workforce is compliant, is of primary importance in today’s changing world. Having an effective end-to-end solution that can scale quickly is vital for all firms trying to navigate these unpredictable times, where being agile enough to respond to market demands can keep you one step ahead of the competition.
But even though many companies use a Managed Service Programme (MSP) to manage their contingent workforce requirements, lots of them are missing out on efficiency gains by keeping their Statement of Work (SoW) services procurement outside of their MSP. By bringing SoW spend into their programmes, organisations can gain significant contingent workforce management efficiencies and reduce costs across other parts of the enterprise that utilise non-employees to get work done.
So, what are the benefits of having an all-encompassing solution?
Here are our five key reasons to incorporate SoW spend into your MSP.
Deliver substantial cost savingsCentralising SoW services procurement allows you to generate further cost savings in the supply chain as you’ll be able to quickly see which vendors provide you with the greatest value for money. This will enable you to considerably reduce your SoW spend as part of your overall Master Services Agreement (MSA).
Project-based work can be costly, but savings can be achieved through:
- improved supply chain management
- contract management negotiations
- competitive bidding through Request for Proposals (RFPs), and
- tighter budgetary controls.
Supplier funded models, for example, can help reduce the financial burden of the end user.
Dispense with the administrative burdenManaging many different suppliers can prove very difficult for HR, procurement and hiring managers – particularly at times when demand and competition for resources is high and internal talent management teams are overstretched. Furthermore, having a disjointed and inconsistent approach will only add to the amount of administration that needs to be dealt with in the long-term.
Bringing SoW contracts and services procurement into scope of your MSP enables your organisation to get far more control and visibility, as well greater consistency, over the management of contracts and key performance indicators (KPIs).
Allow hiring managers to be more strategicHiring managers have a lot on their plates and are often not experts in specialist areas such as compliance and the mitigation of security risks. The misclassification of workers, for example, is one of the biggest risks with SoW services procurement, as it’s difficult to track and can result in penalties for the employer. Similarly, contract management and supplier negotiations can drag on as both parties strive to attain their desired outcomes.
Having your Managed Service Provider handle this for you will free up your people’s time to focus on other business matters. That’s not to say that hiring managers should not be involved in the process; their buy-in as key decision makers is fundamentally important at all stages. But they should be focused on making the right appointment decision, not on specialist tasks such as contract and rate negotiations.
Ensure your business remains profitableAlthough organisations are operating in an extremely volatile, uncertain, complex and ambiguous world, business continuity must still be achieved wherever possible. For contingent workforce management programmes in particular, you need to have the processes and systems in place that allow you to conduct business seamlessly.
In this way you can adapt to market conditions and maintain - or even increase - your service offering to meet customer demand.
Provide solutions enhanced by dataHaving accurate, real-time data you can rely on is vital in making timely and efficient resourcing decisions - whether they’re about your temporary staff or your SoW suppliers. As well as knowing which people you have working on a particular project, you’ll also be able to:
- analyse your recruitment spend
- report on deliverables, and
- track supplier performance.
By having your data housed in one place, you have greater visibility and a holistic view on all aspects of your contingent workforce.
Statement of work and MSP: a perfect match
Even if you already have a specialist MSP to manage your contingent workforce, the SoW services procurement aspect can often be overlooked. But by bringing this area of spend into your MSP, you’ll be able to drive further improvements and cost efficiencies while streamlining supplier and vendor management processes.
What’s more, partnering with a temporary workforce expert will ensure you meet all compliance requirements and enjoy greater transparency and consistency, as well as a more holistic view of how your entire workforce is being deployed.