2024 Baker's Best - 21

TOP MSP PROVIDERS
Taking a centralized approach to contingent workforce
management gives senior HR leaders a holistic view of
how contingent labor is being used, helping identify
opportunities for cost savings and business process
improvement as well as how the contingent workforce
aligns with the organization's overall talent strategy.
3. Contingent labor is still viewed most often as a shortterm
supplement to the employee workforce. Because
of this, fewer than one in five (18%) respondents have a
comprehensive approach for planning their contingent
labor needs and managing the workforce, and often
are more reactive than proactive in their approach to
contingent labor demands. Contingent labor is
a valuable component of a total workforce solution
strategy. When managed strategically, it can provide the
flexibility, cost efficiency, and specialized skills needed
to drive business success in an ever-changing landscape.
However, it is essential to approach contingent
workforce management with a well-thought-out plan
that aligns with the organization's overall goals and
values. These workers can provide an organization
with increased flexibility, cost efficiency, specialized
skills, and access to a broader talent pool. The use of
contingent labor should optimally be part of strategic
workforce planning. This aligns contingent labor needs
with the overall business strategy.
4. Sourcing contingent labor is done through multiple
channels. Nearly half (48%) of respondents typically
use a structured preferred supplier of agencies to
recruit contingent workers, although hiring managers
sometimes also use their own network.
5. Contingent labor performance appraisal is
largely informal and unstructured. For nearly half
(46%) of respondents, there is limited structure with
how their organization gauges the performance of
their contingent labor. Over one-third (34%) have no
formal structure to capture performance or effectively
capture challenges. The most structured approach
is only used by one in five (20%) of respondents.
With this approach, performance is measured by
comparing baseline metrics that comprise revenue,
productivity, and business value generated by the
contingent workers.
6. Most organizations are using at least some of
the available tools to manage the contingent labor
process. For over half (57%) of respondents, the
Taking a centralized approach
to contingent workforce
management helps identify
opportunities for cost savings and
business process improvement.
contingent labor process is formalized, at least to a
limited extent. Most of this segment uses a dedicated
technology suite to create and approve requests,
which includes tracking time and expenses. Hiring
management, suppliers, and contractor notifications
are often included in the suite's capabilities.
7. The largest segment characterizes their organization's
diversity and inclusion (D&I) practices for contingent
labor as less developed than for full-time employees.
Implementing D&I policies for contingent labor is
not only a legal requirement in many cases but also
a strategic move. These policies help ensure that all
workers, regardless of their employment status, are
treated fairly, valued, and provided with opportunities
for growth and development.
8. The use of data in managing the contingent labor
function varies widely depending on the area. More
than three-quarters (77%) of respondents use data to
a moderate or great extent for talent acquisition, for
example, and 73% do so for labor cost analysis. But
more than one-third of respondents (36%) reported
little to no use of data for workforce planning, and
nearly half (45%) reported similarly low levels of data
usage to measure workforce performance.
BAKER'S BEST 2024 - www.hrotoday.com
[21]
http://www.hrotoday.com
2024 Baker's Best

Table of Contents for the Digital Edition of 2024 Baker's Best
