Is your contingent workforce program becoming obsolete?

Posted by Brian Proctor Kathryn Charlton Dana Flynn-Rea and Dave Yerks October 4, 2017.

Your organization, like most of those we are seeing, is probably already incorporating casual workers into your talent mix, and it probably sees increases from one year to the next in the number of casual workers in your workforce. 51% of executives polled around the world said they plan to increase or significantly increase the use of casual workers in the next three to five years, with only 16% expecting a decrease. 1 But even if you think your temporary workforce program has worked effectively, it's important to review it regularly. The contingent market is changing rapidly, and keeping your program on the autopilot may leave it far behind.

Many organizations believe that their casual manpower programs work effectively. However, our analysis shows that even organizations that have invested in this space often fail to meet the minimum criteria for a successful long-term program, including:

Contingent labor costs are controlled and are not "hidden" in account codes that are not tracked.
Fundamental compliance programs are in place and effectively manage risk – joint risk to employment is managed through strong programs, policies and manager training processes.
Measures of contingent labor are captured and reported.
Vendor Management System (VMS) technology has automated much of the source-to-pay process of the temporary workforce.
You know who your casual workers are and how many have access to your sites or systems, and you have a standard taxonomy to define and describe casual workers.
Traditional supply pathways are under control and managers seem to find suitable suppliers from approved suppliers.

Organizations that have invested in their casual workforce programs should constantly monitor their programs and monitor the warning signs of diminishing returns. In addition to the traditional concerns of cost, quality and timeliness, disruptive market forces are rapidly influencing the casual labor market, talent sources have expanded and evolved in recent years. previous years. However, many organizations do not know exactly how to determine if their programs are effective.

At Deloitte, we assess status in a number of dimensions, including processes, technology, vendor management, policies, compliance, and talent management. Periodic health checks are useful for assessing how your program is responding to market disruptions. If you see any of the following warning signs, your program could be in trouble:

There are pockets of risk, such as contingent worker roles mixed with employee roles, raising co-employment concerns (two or more employers having the same casual worker responsibility at the same time).
You rely exclusively on certain supply channels and you do not take advantage of changes in the talent market.
Your organization does not consider the important skills and skill levels of employees and casual workers, which limits your ability to make sound decisions about the number of casual employees and the appropriate full-time equivalent (FTE) ratio. For Your Business.
You track statistics on casual workers, but you have not achieved total talent management, considering casual workers in overall workforce strategic planning.
Contingent workers are used for specific emergencies and needs, but are not considered a continuing part of the organization's talent strategy.

In a changing market, sources are readily available not only to meet talent needs, but also to provide end-to-end service to casual workers, from recruitment and integration to payment. And, of course, services are becoming more and more mobile, allowing workers to easily and on demand access from the device of their choice. In our survey Global Human Capital Trends more than half of the business leaders surveyed worldwide (53%) report low capacity in terms of resources related to concerts and music. talent economy, and only 8% feel that the ability of their businesses to manage crowdsourcing is excellent.2

All of these factors, associated with a changing regulatory environment in terms of employment (hours, overtime, health care, transferability of benefits), as well as more radical societal and economic changes involving demographics, several generations and changing attitudes and expectations regarding work and work – highlight the importance of contingent, even aggressive, contingent workforce management.

If you consider the possibility of reloading your program, potentially making it more relevant from a strategic point of view and even creating a competitive advantage, consider evaluating your program with a critical eye:

Consider how the program meets the needs of customers
Focusing on the employee experience is one of the top ten global trends of human capital 2017 and this experience also extends to casual workers. What are the "Moments That Matter" for the clients of your temporary workforce program, the hiring managers as well as the casual workers themselves? Are there processes in place to support these moments and provide a positive experience?
Assessing the Role of Casual Workers in Total Workforce
In terms of output and productivity, do you get satisfactory returns for your investment in casual workers? Has the way you have traditionally used casual workers been sufficient to support the business strategy in the future?
Consider Source
Evaluate staffing patterns, current sources of casual workers, and the merits of diversification to include other types of sources and technologies in the mix. Maybe it makes sense to establish the "window" of your organization on the occasional workforce. At Deloitte, for example, we created Deloitte Open Talent – an online portal / community to match freelancers with project opportunities within our firm – to give us a better idea of ​​our talent pool. the clarity of our quota management processes.

We will share other examples of how companies manage and deploy casual workers as we explore each of these topics in future articles. Although quotas now represent only a small portion of your total workforce, this may not be the case in the future, whether by choice or necessity. . The way you manage total talent resources, both on and off balance sheet, is not just a matter of competitive advantage, but also, more and more, a matter of survival.

Brian Proctor is a director of Deloitte Consulting LLP and is the US leader in the field of global payroll.

Kathryn Charlton is a leader in the Human Capital and Human Resources Strategies Group of Deloitte Consulting LLP, which helps companies optimize their talent management skills. optimizing their casual workforce. the population through the strategy, processes and design of the technology.

Dana Flynn-Rea is a manager of Deloitte Consulting LLP, responsible for human resources, HR strategy and employee experience. the provision of services and the total optimization of talent management.

Dave Yerks is a specialist in the field of human capital, manpower and strategies of Deloitte Consulting LLP, specializing in all aspects of casual labor practices.

1Jeff Schwartz, and. al., The Economics of Concert: Distraction or Disruption ?, The New Organization: Different by Design, Global Trends in Human Capital 2016, Deloitte University Press, February 29, 2016.
2Michael Stephan, et. al., Talent Acquisition: Enter the Cognitive Recruiter, Rewrite the Rules for the Digital Age: Global Trends in Human Capital 2017, Deloitte University Press, February 28, 2017.

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