In our recent webinar on "How to successfully manage a contingent workforce", we learned the options and benefits to having a strategy for recruiting and managing contingent workers. Let's go over the main points from our talk with the experts, Leah Boxell, the CEO at Enablists and Dan Haslam, the Group Sales Director at Giant.
Checking out contingent workforce trends
The webinar began by looking at what the current dynamics are in the world of work and how this is creating change. Things like not having enough skilled workers, taking too long to hire, wages going up, economic uncertainties and changes in the job market are making companies think differently about how they hire.
"According to recent reports, 80% of employers are grappling with talent shortages, meaning that it’s taking a longer time to hire new hires. In some areas, it's as much as 67 days!"
Making things efficient
Efficient contingent recruitment processes are not just a more attractive option but are crucial for achieving desired outcomes. Leah underscored the need for goals, establishing valuable supplier partnerships, and treating the transformation as a well-structured project.
Different ways to manage workers
Dan talked about the different ways you can manage workers, like doing everything yourself, getting outside help, or using technology. The way you choose depends on what you want to achieve, like choosing the right tool for the job!
According to recent reports, 80% of employers are grappling with talent shortages. Which means that it’s taking a longer time to hire new hires. In some areas, it's as much as 67 days! Not only that but prices are going up too. Wages are going up by 8-10%, but the usual permanent salary increase is only around 5%. So, it's a bit of a challenge in the market at the moment, meaning that choosing the right way to manage workers is more crucial than ever.
Mitigating risks and ensuring compliance
The conversation seamlessly transitioned towards mitigating risks, with a spotlight on compliance considerations such as supply chain compliance, IR35, and worker classification. Dan mentioned the importance of shortening supply chains to enhance risk management effectively.
Subsequently, Leah reminded us that it's important to treat workers well, through the change in mindset of engaging the contractor workforce in a way that ultimately delivers for you. Traditionally everyone keeps contractors at arm’s length but if you want them to deliver quality work and outcomes you still need to engage with them and keep them informed of the work they are doing and the impact it makes. If you decide to utilise an outcome-based agreement, make sure you have the measures and opportunity to hold that consultant/company to account if they fail to deliver.
Using technology to enable cost-efficiency
Dan explained how using technology, like special computer programs, can help keep everything organised and cost efficient. But he also said it can be expensive and might not be right for everyone.
For large contingent programs, a VMS is sometimes deployed. A vendor management system can help control the job requisition process, cascade roles to recruitment suppliers if relevant, and can also help with timesheets and billing.
81% of businesses reported using a VMS to support their contingent workforce model and 48% reported cost savings of 5% or more through the implementation of VMS software.
For those dealing with smaller contractor populations, Giant has its own proprietary VMS solution designed for programs ranging from 10 contractors up to a few hundred. What's even better is that, as part of our comprehensive service, we often deploy this free of charge. This strategic tech integration aims to enhance overall efficiency in managing smaller-scale contingent workforce programs.
Running smoothly
Leah shared some tips on how to keep things going well after you've made these changes. She said it's important to remain observant and keep assessing dynamics. As well as talking to people involved, and keeping a look out for ways to make things even better.
The market for managing contingent workers
Good things can happen when you manage workers well. It will help you to attract and retain contractor talent, whilst spending less money and having more control over everything.
A recent trend indicates a shift towards in-house contingent workforce management, with 1% of companies directly sourcing contingent workers, expected to increase to 25% in the next 10 years.
Please contact us at Giant if you have any questions or would like to watch the recording of this webinar.
