HRO Today Baker's Best 2016 - 56

TOP MANAGED SERVICE PROGRAM PROVIDERS
The report identifi es four major trends that impact
contingent labor programs.
1. SOW management: room for improvement. Only
28 percent of companies deem their SOW services
management a strategic part of their overall workforce
program. Further fi ndings show that over the next
12 to 18 months, many companies are focusing on
increasing their efforts to manage services, including
tracking headcount and equipment, improving supplier
management, and enhancing on- and off-boarding
capabilities for SOW.
2. Technology is increasing in capability. The role
of technology has evolved beyond the simple use
of a platform to manage workers. Today's vendor
management systems (VMS) are integrating new
technologies like freelancer management systems (FMS)
and incorporating advanced analytics, mobile capabilities
and more.
3. Total talent management is no longer a buzzword.
Today's organizations are beginning to employ strategies
to gain a more holistic view of the workforce across
employees and external labor. The study reports that
80 percent of respondents list total visibility as the top
benefi t of incorporating a VMS.
4. Globalization creates organizational obstacles.
The impact of globalization has made managing
the workforce much more challenging, and it will
only continue to grow in complexity. Nearly half of
Ardent survey respondents say they lack operational
standardization on a global scale. Plus, 40 percent of
companies lack basic intelligence around these external
workers, including their locations, assignments, and
performance.
Looking at Best-in-Class
Ardent's report found that high-performing
organizations are signifi cantly ahead in the contingent
workforce management game. When it comes to external
workforce management, the gap between the dos and
the don'ts is widening. Those that are considered best-inclass
are realizing benefi ts on a much greater scale. Case
in point: Best-in-class companies:
* Are 2.5 times more likely to be able to account for all
external labor and services in planning, budgeting, and
forecasting;
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BAKER'S BEST 2016 - www.hrotoday.com
48%
Source: Ardent Partners
* Achieve cost savings at a 94 percent higher rate;
* Are approaching a 25 percent higher occurrence of
achieving compliance to labor laws and independent
contractor standards; and
* Have a 70 percent higher quality index score (a measure
of the quality of one's overall contingent workforce).
How are these companies able to achieve this level of
success? They take a much more strategic look at their
contingent workforce management activities and focus
on a few key areas. First, they take advantage of big
data and use it to determine performance, predict
workforce trends, and make better decisions. Second,
they stay focused on the core competencies of workforce
management, ensuring they have standard, effi cient
processes built around a formal methodology. Third,
they keep compliance front and center; best-in-class of
survey respondents are 85 percent more likely to have a
cross-functional governance team in place. They also have
implemented a total workforce management strategy
that incorporates holistic planning of all types of workers.
The way organizations manage talent is changing. As the
fl exible workforce continues to rise and gain momentum,
companies need to ensure that the management of
such workers is in a place for growth and for change.
Implementing a system to manage non-traditional talent
allows for the success of an organization at large.
Arun Srinivasan is SVP of strategy and customer operations for
Fieldglass.
of respondents
fi nd a lack of intelligence
and visibility as their top
challenge, followed by a
need to enforce compliance.
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HRO Today Baker's Best 2016

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