Like the fate of the sun on each passing day, the time has come to bid farewell to the summer season. For many of us, that transition means feeling the crispness of the fall air, inevitably shorter days, and getting the kids ready for back to school. What better time for an educational refresher covering the multitude of thorough, yet complex, acronyms that define how we communicate in the staffing industry?
If seeing the kids eagerly await (or agonize) the first day of school doesn’t put you in the scholastic spirit, perhaps whipping around some fancy nomenclature to impress your boss or colleagues is motivation enough.
With the annual Contingent Workforce Summit and CW Solutions Forum around the corner, we created Part 1 of the Ultimate Cheat Sheet to Staffing Solutions. In Part 2 of our cheat sheet guide, we define acronyms I – Z and identify which are the most popular (and which are often misused).
The most sought after skill in talent management today – check! PSA – no, not that PSA -- Professional Services Automation; we’ve got that, too! Learn which staffing acronyms are sure to get you a shiny gold star, and which ones you’ve been abusing.
The Ultimate Cheat Sheet to Staffing Acronyms Part 2 (I-Z)
Independent Contractors (IC’s/1099): One of the most popular and often misused acronyms is Independent Contractor. This is a business entity, usually a single person or small business, working under the IRS 1099 form designation. These are workers who are engaged by a client for specific tasks under a statement of work or other deliverable agreement working independent of the client’s control or supervision. The IRS guidelines have been made clearer for correct classification of these workers, but there is still confusion and misclassification.
Independent Contractor Evaluation (ICE): As noted above, Independent Contractors are classified as such by the IRS by virtue of certain tests and requirements that confirm their proper classification. IC evaluation is a service that provides guidance to a client regarding the correct or incorrect classification of workers identified as ICs, either prior to engagement or for those already working. The client has the final say on classification, with the provider offering an opinion/guidance based on a review of the contract terms, working arrangement, control and other aspects of the engagement
Independent Contractor Management (ICM): Independent Contractors are utilized by many businesses along with other non-employee groups. IC Management refers to the administrative management of these workers into and out of an organization. This could include some or all of the following: RFx activities, milestone tracking, onboarding, reporting, payment and billing.
Key Performance Indicator (KPI): A buzzworthy acronym across a number of professional industries, this commonly used term is defined by a set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals. KPIs vary between companies and industries, depending on their priorities or performance criteria.
Master Service Agreement (MSA): A master service agreement is a contract reached between parties, in which the parties agree to most of the terms that will govern future transactions or future agreements.
Managed Service Provider (MSP): A Managed Staffing Provider (MSP) program oversees all aspects of the procurement of supplemental staff, including selection of the staffing providers and quality and compliance assurance. This differs widely from other staffing solutions, such as a Vendor Management System (VMS) or Staff Scheduling Software. A main point of distinction is the level of involvement and accountability for staffing performance that you receive from the provider.
Procure-to-Pay (P2P): This is the process of obtaining and managing the raw materials needed for manufacturing a product or providing a service.
Professional Services Automation (PSA): Professional services automation is software designed to assist professionals, such as lawyers, auditors, IT consultants, and other professionals, with project management and resource management for client projects.
Project Management Office (PMO): This is a group or department within a business, agency or enterprise that defines and maintains standards for project management within the organization. The PMO strives to standardize and introduce economies of repetition in the execution of projects.
Quarterly Business Review (QBR): Conducted on a quarterly basis, this is a review of the business plan to address new business situations and provide project status updates on existing ones. Operations and planning staff oversee and review project timelines and budgets, as well as address audit and compliance issues. Follow up action items are then defined and delegated.
Return On Investment (ROI) This is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.
Recruitment Process Outsourcing (RPO): The Recruitment Process Outsourcing Association (RPOA) defines RPO as “a form of business process outsourcing where an employer transfers all or part of its recruitment processes to an external provider. Recruitment Process Outsourcing providers can manage the entire recruiting/hiring process, or can manage one or two aspects of the process, essentially serving as an extension of the company’s human resources department”. This definition illustrates that RPO services are not outsourcing in the traditional sense, as working with an RPO provider is much more consultative and customizable than normal recruiting.
Shared Service Center (SSC): Shared Services is a way of organizing administrative function to optimize the delivery of cost-effective, flexible and reliable services to all “customers”.
Strategic Workforce Planning (SWP): Strategic Workforce Planning is the most sought after skill in talent management today and the new SWP (Strategic Workforce Planning) program offers the first professional certification of its kind in the industry. SWP conferences have demonstrated both subject matter expertise and proficiency in solving some of the most pressing challenges in business.
Subject Matter Expert (SME): A subject-matter expert (SME) or domain expert is a person who is an authority in a particular area or topic. The term domain expert is frequently used in expert systems software development, and there the term always refers to the domain other than the software domain. A domain expert is a person with special knowledge or skills in a particular area of endeavor. For example, an accountant is an expert in the domain of accountancy.
Supply Chain Management (SCM): Supply Chain Management (SCM) is the management of the flow of goods and services. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain.
Service Level Agreement (SLA): This is a contract between a service provider (either internal or external) and the end user that defines the level of service expected from the service provider. SLAs are output-based, in that their purpose is specifically to define what the customer will receive.
Statement of Work (SOW): A statement of work (SOW) is a formal document that captures and defines the work activities, deliverables, and timeline a vendor must execute in performance of specified work for a client. The SOW usually includes detailed requirements and pricing, with standard regulatory and governance terms and conditions.
Talent Management System (TMS): A talent management system (TMS) is an integrated software suite that addresses the “four pillars” of talent management: recruitment; performance management; learning and development; and compensation management.
Vendor Management System (VMS): A vendor management system (VMS) is an Internet-enabled, often Web-based application, that acts as a mechanism for businesses to manage and procure staffing services – temporary, and, in some cases, permanent placement services – as well as outside contract or contingent labor.
Looking for extra credit? Get up to speed on a variety of staffing solutions for contingent labor management and permanent recruiting placement by visiting our free resources pages. Download the eBooks, webinars, and case studies that reveal what recruiting tools and processes what some of today’s largest global companies are using to get the job done.
Still looking for more? Check out Part 3!