This is the first in the series of blogs on the state of contingent workforce management (CWM). To kick off, we’re investigating the impact digital technology and innovation are having on the world of work
Hiring talent has for most part been the biggest competitive differentiator for businesses during periods of disruption.
Today, however, digital technology is just as important as human capital. Digital platforms are a foundational component of building an agile workforce. And as most business leaders now recognise, having an agile workforce is essential in an ever-shifting global marketplace.
Across all sectors, advancements in work-based technology — from digital and on-demand staffing to artificial intelligence (AI) — are the gateway to the future of work.
If you want to explore further areas of contingent workforce management that make up a truly best-in-class programme, download our 'The State of Contingent Workforce Management 2018-2019: The Pursuit of an Agile Workforce' report, produced in collaboration with Ardent Partners research and analysts.
Consumer trends to workplace trends
With technology, consumers consume and share information on every imaginable topic, order personalised products and connect with the world on-demand, all with a click, touch or increasingly, a swipe. As businesses move towards agile business models, these trends are now finding their way into the workplace.
Research by Ardent Partners, conducted with Guidant Global, found that there are a number of consumer-led attributes that are directly pushing the world of work into a new era of business optimisation:
From real-time, on-demand staffing marketplaces, to AI-powered CWM platforms, every aspect of workforce management is being transformed by digital technology. As the digitally native Generation Z enter workforces, workplace technology will increasingly have to keep up with consumer trends. Technology will not just be an option, it will become the expectation.
CWM: the procurement purview
The contingent workforce arena has undergone a rapid talent-first transformation in recent years. But there are still critical pieces of traditional supply management competencies that are required to drive ultimate value.
From a procurement perspective, there are several approaches that this function is taking to enhance its management of the non-employee workforce:
By increasing collaboration across functions, and utilising advanced CWM solutions — like MSP and VMS platforms — businesses can effectively optimise collaboration, and automate CWM processes. Both of these factors have a big impact on making a workplace more agile.
The next generation of functionalities, like advanced VMS, AI and machine learning will only further enhance CWM programs.
The SOW conundrum
Ardent’s definition of contingent labor is split into three core categories: traditional temporary labour, directly sourced talent (such as freelancers), and complex contingent labour, which includes professional services and statement-of-work (SOW)-led projects.
Almost 70% of procurement teams are prioritising SOW management and services procurement in the next 12 months as a way to improve the overall CWM program.
Despite this, only 48% of businesses have centralised the management of the SOW under the overall contingent workforce program. There are still core and traditional aspects of CWM that businesses haven’t yet mastered. 40% of businesses did, however, say that they expect to integrate it into CWM in the next few years.
For businesses that aren’t currently centrally managing SOW, there are a number of reasons why this is the case:
The vast majority cite internal stakeholder resistance as the primary reason. Whilst almost half think it’s simply too much work to take on.
Though centralising the management of SOW and service workers sounds both complicated and daunting, the vast majority of uncontrolled spending lies within SOW and services. From IT to legal, maintenance to accounting, there are a vast number of service types that are being engaged and leveraged across every function across the greater organisation.
Failure to control this spending stops most CWM programs from realising their true value.
CWM: the human capital perspective
The contingent workforce market is increasingly talent-led, rather than commodity-led. CWM programs are needed to balance the financial and procurement aspects with human capital strategies that were once better for “people management”.
As ever, the depth and quality of talent is still the most important part of the evolving world of work. It makes sense that HR and HCM functions still play pivotal roles in how a contingent workforce is managed globally. In fact, businesses today already anticipate a growth in the use of advanced CWM capabilities that fall within the HR purview:
All of these capabilities revolve around the key element in the changing world of work — talent. These advanced, human capital-led factors are there not only to improve how a modern business engages and sources its workers, but also how it integrates them into the greater organisation.
Want to learn more about the most effective CWM programmes?
In this blog we’ve only explored a small number of the factors which have allowed the best businesses to build and develop highly successful contingent workforce programs.
If you want to explore further areas of contingent workforce management that make up a truly best-in-class programme, download our 'The State of Contingent Workforce Management 2018-2019: The Pursuit of an Agile Workforce' report, produced in collaboration with Ardent Partners research and analysts.