With the variety of contingent employees throughout the enterprise workforce anticipated to rise (Magnit analysis exhibits that 76% of employers anticipate contingent headcount to extend or keep the identical within the coming yr), leaders should discover methods to drive even larger program influence from their prolonged workforce and scale their successes. To adapt to right this moment’s market and overcome expertise provide points, they need to strategy their non-employee workforce as strategically as their full-time workforce.
Nonetheless, at a time of abilities shortages, when it’s essential for companies to construct deeper expertise pipelines, many have stopped in need of absolutely optimizing their contingent workforce administration applications. Magnit’s contingent workforce maturity curve can act as a information for this course of, serving to leaders perceive what it means to mature their program and information subsequent steps towards their final objectives. It outlines the important thing traits of every stage and the options that signify an organization has moved from one to the subsequent.
Stage 1: Set up a Contingent Workforce Program
Companies with advert hoc applications have solely simply began exploring workforce integration. In these firms, contingent employees are managed on a case-by-case foundation by the division for which they work or a staff that handles vendor administration. At current, slightly below half of corporations utilizing contingent employees fall into this class.
Whereas this strategy could assist firms fill abilities gaps on a small scale, the advantages of leveraging contingent employees cease there. Advert hoc applications are unlikely to save lots of firms cash or drive enterprise targets on a big scale. As companies progress by means of this stage from “advert hoc” to “fragmented,” their applications acknowledge the necessity for standardization of the CWM course of however have solely taken preliminary steps to that finish. These firms are making investments in and implementing each vendor administration methods (VMSs) and internally managed program workplaces (IMPOs) or managed service suppliers (MSPs).
In these firms, enterprise leaders are exploring the advantages of integration, however the broader management staff nonetheless views CWM as an advert hoc endeavor with little consideration given to the technique’s scalability or potential to drive operational enhancements.
Stage 2: Unlock Extra Channels of Expertise
To maneuver from stage 1 to stage 2, firms might want to full their technological and operational implementations and start to view their applications as extra strategic pursuits, incorporating useful resource monitoring, direct sourcing, and superior analytics into their processes.
Firms on this “centralized” part are extra centered on enchancment than implementation, have began assessing and evaluating returns, and are taking tangible steps to assist scalability. Moreover, program leaders are keen on constructing governance with a watch towards controlling prices whereas bettering their sourcing fashions.
As organizations advance by means of this stage to a extra “empowered” state, their applications are pretty superior, with near-complete cross-functional engagement amongst high-level leaders. Firms with “empowered” applications interact in proactive decision-making efforts knowledgeable by prolonged workforce information to drive organizational targets. These applications are the results of a concerted effort by managers and expertise acquisition groups to enhance processes, however their affect stays restricted by a scarcity of complete C-suite funding, as do their advantages.
Stage 3: Implement an Built-in Expertise Technique
Breadth and depth are the defining qualities of a completely built-in CWM program. These applications prolong to each nook of the enterprise and leverage a complete vary of methods that streamline sourcing, management spend and assist holistic visibility. Totally built-in firms have superior direct sourcing, non-employee DE&I and automation methods in place in addition to C-suite buy-in.
The fruits of the method come from partaking with options that assist the agile, cost-effective and dynamic workforces that right this moment’s companies have to succeed. Nonetheless, it’s vital to remember the fact that maturing a CWM program is a steady course of. Critically, absolutely built-in applications don’t see their journey to maturity as full simply because they’ve reached the “last” stage; they perceive that the method is ongoing.
It’s not about making particular investments or utilizing particular instruments. It’s about pursuing steady enchancment, no matter the place what you are promoting sits on the curve. Don’t take your foot off the fuel simply since you’ve achieved your first set of objectives. That simply means it’s time to circle again and discover methods to additional refine processes to drive incrementally bigger program influence.
Within the subsequent a part of this collection, I’ll focus on learn how to overcome obstacles on the trail to program maturity.