Simply put; you don’t need a managed staffing program if the following aspects of your contingent labor program are accounted for.
These include a solid talent supply chain which is accurately forecasted, the ability to report on key performing metrics and a firm understanding of which departments manage which aspects of the program. If all of these areas fall into perfect alignment, then congratulations! You’ve passed go and can collect your proverbial $200. For the remainder of you, allow us to shed some light on how to improve or in some cases, start managing a temporary staffing program.
Where Did All The Full-Time Hires Go?
As you have likely heard, the use of contingent workers is steadily on the rise. To complicate matters further, there used to be a clear delineation between who within the organization was responsible for hiring permanent employees versus temporary ones. Today that composition is more of a blurred line than it is a full circle.
Additionally, today's workforce composition is changing. The demand for more freelance, temporary and contracted workers stems from a shift in employee preferences (consistently due to work life balance) and the need for the organization to have a more flexible workforce.
Furthermore, this article by Monster accurately describes why more and more companies are outsourcing their temporary employment programs. We’ve highlighted the more popular reasons here.
- Temporary is a permanent corporate strategy
- Client expectations rise as VMS and MSP models evolve
- Clients like SOW for well-defined projects
- Tapping the market for instant labor
The New Labor Norm
At the end of the day, someone in your organization is responsible (or will be) for temporary staffing. What was never a relaxed process is now becoming even more of a test due the rise of temporary labor. Highly regarded as the “new norm,” many organizations will need to create visibility and accountability around this unfamiliar process.
Implementing a contingent labor program seems to be even more of challenge. With bigger problems to address, executives typically lump temporary staffing into a Human Resources, Procurement or a Hiring Manager's workload. Often, these individuals do not have the experience or resources needed to properly manage a full-scale or short-term contingent labor program.
That’s where a managed staffing solutions comes into play. One of the main reasons to call on a managed staffing provider is to centralize the efforts needed to hire contingent labor. The other primary reason is to reduce the risk associated with temporary staffing. By not having some of these things covered you are risking increased costs, non-compliance with employment laws and damage to your employment brand.
On the occasion where you have the chance to sit down with your leadership team or the decision maker to discuss contingent labor, here is a helpful checklist to ask that will determine whether you can self-manage contingent labor, or if it is a better business decision to outsource this function.
About the Author: Matt Rivera serves as Vice President, Marketing and Communications and is responsible for overseeing all aspects of Yoh’s marketing and brand communications. Matt holds a degree in Journalism/Public Relations and has been working in the staffing industry for more than 25 years. Prior to this role, Matt held many different roles from branch recruiting and proposal writing to technology management and online marketing.