Procurement Priorities: Core To An Effective Contingent Workforce Program
Friday, May 4, 2018
Recently I attended the Procurement Leaders Americas Congress 2018 conference and while there asked some of the participants what they were looking to gain by attending. The responses were very interesting, with a consistent message of the following:
- Improve diversity
- Reduce risks
- Plan for the future of work
Interestingly, these priorities are core to an effective contingent workforce program. Let’s explore how…
- Improving Diversity – Often organizations embracing diversity are more competitive in the marketplace. In fact, studies show diversifying the workplace helps businesses increase their market share and bottom line. A diverse workforce combines workers from different backgrounds and experiences that together create a more creative, innovative and productive workforce. Key to an organization’s success, an effective contingent workforce program is able to recruit from a diverse pool of candidates and enable organizations to engage the best and the brightest talent in the labor market.
- Reducing risks – As the demand for flexibility and specialized talent grows so does the need to engage more independent contractors. With this growth comes the challenge of managing this dynamic workforce and successfully navigating the increasing complexities of employment law to protect your organization from possible fines, penalties, and litigation resulting from worker misclassification. An effective contingent workforce program establishes policies, standardizes processes and enforces the rules for engaging and managing contingent labor to mitigate these risks.
- Planning for the future of work – The increasing use of automation and artificial intelligence is transforming the workplace and workforce. While some jobs are eliminated others are creating the need for new skill sets. Organizations need to take a proactive approach to understanding the potential impacts of innovation on their workforces (both employees and contingent workers), and plan for change accordingly. An effective contingent workforce program is able to provide visibility into the contingent workforce, talent markets, and available skill sets to help an organization navigate and succeed in the new future of work.
Whether focused on building an effective contingent workforce program or procuring other products and services, the need to improve diversity, reduce risks, and prepare for the future helps to better position an organization for success in a globalized world. I had an informative and productive time at the conference and look forward to learning what’s on your priority list.
Author: Leon Rhodes has over 20 years of business and solution development in the human capital management industry. He develops strategic global workforce solutions that improve supply chain efficiency, provide transparency and reduce cost.