Tag Archive for: contingent workforce

Contingent Workforce Management: Determining the Right Model for You

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Contingent Workforce ManagementThere is no question that the contingent workforce continues to grow.

And, why wouldn’t it?  A contingent workforce offers organizations a litany of benefits.  If you want to help reduce liability, manage costs and simplify the tracking and accounting of your workforce you have traveled down the right path.

So, as a conscientious corporate executive you do your research and find a VMS/MSP to manage the process.  But, don’t be fooled!  Most of the current MSP/VMS models seem to have come woefully short of truly delivering exceptional value to their end clients.  But why?  Well, although the intentions are audacious, most of the time the execution falls short with the setting of unreasonable expectations coupled with a dramatically poor communication program.

The typical MSP/VMS solutions count on the system to manage a workflow, but are usually understaffed or unqualified to manage the interactions required in a high performing recruiting model.  Couple this with unrealistic restrictions and expectations put on the “vendors/partners” who are actually the delivery engine of the whole process, and you have a flawed system.

Quick vs. Great

In reality, among a majority of hiring managers, staffing vendors and many of the organizations who continue buying these contingent workforce management solutions there seems to be an underlying lack of satisfaction with the results of their programs. Here are some facts:

  • A recent SIA survey of buyers and users of MSP/VMS recorded “Net Promoter” scores of 25% or less – essentially not a ringing endorsement of the solutions.
  • A similar SIA survey of vendors to MSP/VMS solutions recorded a “Net Promoter” score of minus 50%, yes minus and they are the actual delivery engine to these solutions.
  • Brightwing’s own survey, sent to over 4,000 users, represented similar results with 52% of the respondents desiring a solution that incorporates the high touch of specialized recruiting or staffing firms.
  • Finally, over 90% of those surveyed responded that for critical positons they actually had to find a work around the existing MSP/VMS processes.

Attracting the best and brightest into an organization takes a high-level of communication, understanding and nurturing. So, why does it seem that in most of these MSP/VMS delivery models one of the first and most important process they implement is to limit communication  as opposed to enhance it? The truth is, the expectation is to view and categorize people as nothing more than commodotized widgets.

There is a simpler, more cost effective and value driven alternative.

  • There are available technologies today that can drive the consolidation and management of time keeping, invoicing and even the security (who is actually in your facility and when).
  • Managing issues regarding compliance and liability are structural issues where processes don’t have to eliminate communication.
  • There are also simple answers to tracking expectations and results (quality) that actually can be delivered using the same technologies that are being used but very seldom applied.

Talent drives innovation and success in any top-performing organization. Leading organizations understand that when they are discovering and acquiring talent, it’s an investment in their future and a statement about their potential.  Let’s work towards helping our clients and our candidates reach their full potential as opposed to putting systems and processes in place that are not conducive to attracting and delivering the best.

Contingent Workforce ExpertAuthor: George Albert Optiz, President of Brightwing

Why Organizations & Staffing Agencies Must Partner to Make Contingent Workers Welcome

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Staffing Agencies and the ever-changing Contingent WorkforceThe necessity to utilize, understand and engage the contingent workforce is an issue that is becoming more and more pertinent to the success of staffing agencies and organizations.

Temporary and contract labor makes up 26% of the American workforce (Aberdeen Group, 2012).  Furthermore, according to the U.S Department of Labor, the contingent workforce is among the fastest growing segment of workers and the organization predicts a 23% increase by 2020.

These statistics come as no surprise, temporary, contract and contingent workers provide organizations with a great deal of flexibility while minimizing their sunk costs. However, new challenges are introduced such as the engagement, alignment and cultural values of the contingent workforce.

I would argue that many organizations and staffing agencies are ignoring the need to actively engage this ever-growing contingent workforce. Case in point, many organizations do not take the same care in hiring their contingent workforce as they do their full-time employees and instead are moving towards a more commoditized procurement model. They forget about things like corporate branding, employee selection and ongoing development. This can be a very costly mistake leading to high turnover, low employee engagement, loss of productivity and can even become contagious, infecting the performance of full-time staff.

Full-time or contingent, disengaged workers have a detrimental effect on the performance and balance of the workforce. Disengaged employees cost organizations $3,400 for every $10,000 in salary (Gallup 2002).

Staffing agencies also play a role in the engagement of the contingent workforce. To be effective they must partner with organizations to create a process that (1) identifies great employees that fit the culture of their clients, (2) engages them during placement and (3) continues to support their goals and needs. Organizations, MSPS and staffing agencies must all partner together to create processes and procedures that support long-term employee engagement.

As the contingent workforce continues to be a greater percentage of the American workforce, the more important it will become to actively engage and align temporary and contract employees.
georgeAuthor: George Albert Opitz, President of Brightwing

The Contingent Workforce: Why Your Staffing Strategy Is Killing Your Business

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In the article, Four Facts About the Emerging Contingent Workforce, McKay gives advice detailing how workers today should be ahead of the learning curve in order to stay relevant. McKay discusses how staffing changes in the global workforce will continue to happen more rapidly due to technology. While I agree with the points made in the article, I believe organizations must also change their practices towards staffing their contingent workforce in order to keep all of their employees engaged.

how you should treat your contingent workforceThe importance and growth of the “contingent workforce” model seems to continue to be misunderstood in most corporate environments today, especially when it comes to higher level, skilled professionals. What talent management/ HR teams seem to miss the most is the importance of building the same solid, engaged and high performing workplace for both full time and contingent workers. Corporate branding, employee selection, development and alignment should all be considered when bringing a new employee into an organization, whether they are full time or contingent hires.  When this is not considered, turnover and employee disengagement for both contingent and full time will occur as the culture suffers.

The current contingent environment is deteriorating into a procurement driven model that looks to achieve the most amount and highest quality of work, for the least amount of money. The effect (short-term and long-term) is essentially how the client organization is perceived in the talent market, and will take a toll on the talent available to that organization.

There is little doubt that engaged workforces lead to high levels of organizational performance. Organizations with high engagement ratings outperform competitors in their market segment, every time. With this in mind, it is the organizations that take the same care hiring their contingent workforce as they do their full time employees that will consistently attract the best contingent talent.

georgeAuthor: George Albert Opitz, President of Brightwing