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The world of work is constantly evolving, and with the pandemic even more rapidly. As a result, organisations have had to adapt and respond quickly to the needs of their workforces.
For many organisations the notion of a flexible workforce was new, however, the benefits of adopting flexible workforce strategies were quickly realised, increasing the use of contingent workforces. Relying on contingent workers allows organisations to be scalable for rapid times of growth and to scale back as their business needs become less. With a well-managed Contingent Workforce Programme (CWP), teams can be built, dismantled, and reconstructed as the demand requires.
Collaborating with contingent workers, however, can come with its challenges. Managing large contingent workforces can be time-consuming with additional administration as well as an increase in costs if it is not managed correctly. In addition to time and costs, ensuring the correct candidates are sourced and onboarded effectively with the correct market-related rates, can be a difficult exercise. In a market where the most qualified resources are in high demand, having a robust sourcing and onboarding process is important to secure key contingent workers.
Having multiple staffing and service providers that you can source critical contingent workers is important, however, managing the compliance around these agreements and ensuring your company is not open to any risk can be complex and if not managed correctly can cause long-term frustrations and compliance nightmares.
Gaining visibility into your contingent workforce and control of contract spend becomes particularly important. One best practice that has been helping companies gain control over their contingent workforce is the Managed Service Provider solution (MSP). An MSP specialises in the management of contingent workforce business process from sourcing critical skills, contracting the supplier correctly, managing the onboarding of the resource into the organisation as well as timesheets, invoicing, offboarding, terminations, and other labour-related administrative tasks.
MSPs support the implementation and delivery of best business practices in the procurement of services in contingent workforces as well as designing and rolling out of improved processes to support the deployment of workforces.
Having a programme in place that focuses on contract labour assists organisations in making more effective sourcing decisions as it provides visibility into contracts and skills mix. From a procurement spend perspective an MSP partner can also help in driving the correct spend as per BBBEE requirements, helping organisations achieve their transformation targets.
To gain true visibility, organisations must capture spend information for all vendors (suppliers) providing contingent services ensuring segregation of the services into appropriate and structured categories. With spending categorised correctly business can analyse their contingent workforce effectively in addition to undertaking other tasks such as:
- Comparing rates across suppliers and skillsets ensuring that market rates are payable and supplier markups and management fees are monitored.
- “Normalising” or “standardising” rate structures for all vendors.
- Creating the best resourcing options – whether it is best to address a particular need with contract resources or through Statement Of Work (SOW) or deliverable-based contracts.
- Measuring supplier performance and benchmarking against Service Level Agreements (SLAs).
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