Contingent Workforce Management: Determining the Right Model for You

Contingent Workforce Management: Determining the Right Model for You

10/21/2014

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



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