What is the business of managing contingent or contract labor called?

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

Companies, Compliance, and the Contingent Workforce Statistics

What are companies thinking about their contingent labor? Yves Lermusiaux provides the following statistics:

• 92 percent cite inconsistent costs and a lack of price control a primary “pain point” with their current contingent labor workforce.

• 69 percent are highly concerned about their organ ization’s compliance with industry regulations such as Sarbanes-Oxley, SEC, FDIC, etc.

• 66 percent are highly concerned about employee misclassification and co-employment risk.

• 50 percent do not know if their company has ever defended itself against a lawsuit associated with contingent labor.

• 33 percent could not report which, if any, department holds primary responsibility for minimizing their company’s risk and liability as it relates to contingent workforce management.

• 21 percent could not estimate their company’s current annual spending for contingent labor in the U.S.

• 18 percent could not estimate the number of suppliers currently providing contingent labor to their company.

Contingent Workforce Management Trends. [Sarbanes-Oxley Compliance Journal - Yves Lermusiaux]

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

Vendor Management Standards Committee Formed

The Human Capital Institute and a coalition of seven contingent workforce industry vendors announced today the formation of the Vendor Management Standards Committee. Advancing best practices and benchmarks for clients, COMSYS, Beeline, Allegis Group Services, Bartech Workforce Management, Comensura, MyBizOffice and ProcureStaff joined forces with the Human Capital Institute to develop and publish best practices and industry standards focusing on vendor management.

Here are some quotes from press releases on the Committee:

• "There is a great deal of confusion among buyers and industry insiders as to what constitutes a Managed Service Provider (MSP). The vendor management industry lacks consistency or standards around the services it provides."
  
  
• "We continue to see a substantial increase in the use of vendor management systems, especially with large- and medium-size firms nationwide . "
  


• "The Vendor Management Standards Committee will help to establish base standards that will serve as a fundamental set of expectations for any buyer who contracts with an MSP that adheres to the standards. "

More information can be found at the following link:

Vendor Management Standards Committee Formed to Promote Contingent Workforce Industry Best Practices. [Human Capital Institute]

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalization * Trends * Outsourcing

Demand-Driven Workforce Management

Kronos', a leader in technology for workforce time tracking, descrbes "Demand-Driven" Workforce Management on their website. This exemplifies a major advantage to utilizing a contingent workforce which is the reduction of labor costs when a workforce can be easily augmented or cut back in conjuction with company and customer needs.


When the workforce is not aligned with demand (as in the above chart), your organization risks being overstaffed against customer volume, production workloads, or the patient census, all of which increase your payroll costs. Worse, it can also lead to understaffing and the inability to meet your customer service and quality standards. Rectifying the situation may require excessive use of overtime and premium labor.
Demand-Driven Workforce Management helps you to perfectly align the workforce with demand. As a result, you can reduce labor costs by minimizing overstaffing and improve quality by avoiding understaffing. Most important, your frontline managers can take a more proactive role in improving business performance. They are better able to manage responsibilities associated with staffing budgets, labor law and policy compliance, and employee satisfaction.

The Demand-Driven Workforce. [Kronos]

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalism * Trends * Outsourcing

Managing Your Contingent Workforce

Contingent Workforce Strategies has published group of articles on managing external contractor and temporary worker labor forces entitled "Managing Your Contingent Workforce." The articles provide a solid knowledge base for professionals who seek to gain cost, administrative, and risk control over their contingent workers.

Managing Your Contingent Workforce. [Contingent Workforce Strategies] {PDF hosted by ContingentWorkforce.org}

Workforce Vision * Post: Bill Inman * Human Capital * Contingent Workforce * Globalism * Trends * Outsourcing