Creating Corporate Advantage through Human Resources  

Monday, April 15, 2019

People matter. The right employees make a monumental impact on organizational culture, productivity, and the bottom line. That’s not a new concept for HR leaders who understand that talent is an organization’s most critical asset.

But getting the entire organization to look at talent through this lens is easier said than done. Some functions, including the procurement team, may view the hiring process as a cost savings exercise, especially if the organization has been burdened by the extra expenses associated with a bad hire. Studies show the cost of turnover can reach up to 1.5 times an employee’s salary, which is significant by anyone’s terms. This makes it even more imperative for HR managers to do their job well.

Countering the risk of bad hires with contingent labor

One of the best ways organizations can counter the risk of a bad hire is through contingent workers. Hiring in an on-demand capacity with short-term or contractual gigs is a smart way to alleviate the pressures that come with a tight labor market while scaling the workforce at the same time. Expanding the candidate search to include these types of alternative positions opens up the talent pool and gives organizations access to highly specialized candidates. It also offers new levels of flexibility and limits the long-term impact of bad hires.

The unique challenge in hiring contingent labor is that these roles are based on a statement of work and come with considerably more employment regulations and management considerations. Procurement’s negotiation skills, knowledge of regulatory compliance, and contract expertise can help tremendously in hiring these candidates at the right costs and under the right terms. But procurement needs HR’s expertise to make it work.

HR’s role in effective total talent management

Hiring contingent labor can’t strictly be viewed as a transaction. There’s a lot more to consider than contract terms, compliance, salary, and wages.

Finding quality candidates who have the hard and soft skills required for the role and fit culturally is the foundation of successful hiring, and where HR’s talent-focused expertise comes into play. HR leaders can also add value by keeping candidates engaged once hired, dealing with retention or performance issues as they arise. HR’s expertise can also help merge contingent and full-time workers into one, cohesive, and productive total workforce, which is part of the department’s mandate of evolving the organization with the future of work.

HR’s expertise in these areas, coupled with procurement’s strengths, set the organization up with the right candidates, under the best terms, and at the best prices. By meeting in the middle on talent management so that each department’s skillset is leveraged in the right ways, HR and procurement teams can make sure that:

  • The organization understands the skills they need to meet immediate needs
  • The organization effectively engages and develops contingent workers
  • There are enough candidates for statement of work project and full time job openings
  • The organization effectively deals with benefits, tax, and compliance complexities on a global scale
  • The organization is finding the right candidates at the right price – ones that will drive profitability and productivity quickly

Effective recruitment and talent management drives corporate advantages – and requires procurement and HR collaboration.

Partnering with managed service providers (MSPs) and leveraging vendor management systems (VMS) can help bridge the gap between HR and procurement departments. These outside partners can merge expertise from both sides of the table, ultimately ensuring the hiring process is as smooth, fast, and effective.

For more insight on how procurement and HR can meet in the middle on modern talent management:


Fatime Doczi is Chief Human Resources Officer for Workforce Logiq. She is responsible for preserving the organization’s culture of positive engagement, driving a culture of continuous improvement and operational excellence strengthening the HR function’s alignment to business strategy. As a key member of the executive team, she provides strategic leadership and direction in the areas of organizational effectiveness, succession planning, performance management, talent acquisition, total rewards, and diversity and inclusion.

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