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Contingent Workforce Management (CWM) is the way a company organises its need for and use of contingent workers. There are a number of contingent workforce management models out there, each meeting specific key drivers for the organisations that implement them. What are your key drivers for Contingent Workforce Management? And which model’s the best for your organisation? Read on…
Key components of a CWM program include the requisition, sourcing, evaluation, engagement, management and payment process of a contingent workforce…but not necessarily the recruitment of the resources.
A CWM program can also include the quality and performance management of the contract worker supplier community.
Key drivers for CWM
Efficiency & Quality
- best in class resourcing metrics
- highly satisfied stakeholders
- right talent at right time at right cost
Cost
- cost of supply chain reduced
- contingent labour spend reduced
Risk & Compliance
- risk mitigation
- streamlined processes and procedures
Visibility & Control
- technology-enabled
- 100% visibility/actionable data
Decentralised Model
- Inconsistent control and compliance
- Spend and process inefficiencies
- High administrative burden
- Technology limitation
- Limited or inconsistent reporting and metrics
- Multiple invoices
- Limited supplier performance tracking
Centralised Model
- Contract compliance and risk management
Maximised savings through operational efficiencies - Savings through supplier consolidation – leveraged volume reductions
- Review of requisitions prior to release
- Screening of candidates prior to submittal
- Hiring manager, candidate and supplier satisfaction
- Real time reporting/data
- Metrics-driven management and fact-based decision making
- Consolidated invoicing
BUILDING A BUSINESS CASE
- Perform a High Level Assessment of Your Current Business State
- Define Requirements and Prioritise Objectives
- Obtain Buy-in from Critical Stakeholders in the Organisation
- Understand the Risks if a Centralised Program is Not Implemented
- Evaluate potential models and suppliers
- Evaluate & Select Trusted Partner/Go to Market Strategy
Primary contingent workforce models
Managed Service Provider MSP
- takes primary responsibility for managing an organisation’s CWM program
- may or may not be independent of a staffing supplier
- typical responsibilities include: overall program management, reporting and tracking, supplier selection and management, order distribution and often consolidated billing.
- most provide clients with a vendor management system (VMS)
Preferred Supplier Model PSL
- provide clients with temporary & contractor recruitment services
- selection process is typically managed by procurement with input from HR & Hiring Managers on supplier inclusion on the preferred panel
- typically Hiring Managers have decentralised access to use suppliers on the panel to fill their vacancies
- panels are typically chosen by job types, business divisions and geographic locations/sites
Contractor Management Outsourcing – CMO
- manages the compliant contractual engagement with a CW post placement and provides ongoing payroll, care and lifecycle of the worker for the duration of their contract
- typically independent of staffing suppliers, & do not provide recruitment services
- typical responsibilities include; compliant engagement and on-boarding of CWs, timesheet process and payroll management, payment of statutory charges and insurances, contractor benefits program
