There are many paths to success in the design, deployment and administration of workforce management solutions. Whether an organization opts to manage these processes internally, outsource them in their entirety, or pursue some blend of internal and external solutions, the overarching goals are largely the same. Here are what all workforce management solutions worth their salt should be working towards.
A structured process for capturing data on all supplier activity provides a program with visibility into supplier performance. The consistent application of KPI’s and solutions to enforce KPI metrics afforded by visibility helps lift the overall efficacy of the workforce.
Similarly, recording spend for regular review provides visibility into where dollars are effective and where they’re not. The savings enabled by improved spend visibility can be significant. Spend visibility also permits the comparison of positions across the contingent workforce to isolate where a program may be paying too much in certain locations or within certain verticals.
Good workforce management solutions will drive improved visibility into supplier activities to ensure they’re adhering to sourcing and other policies. They offer a way to view if any suppliers are subcontracting the work they ought to be managing as a primary. Poor visibility into this practice can result in a layering effect that may become a runaway train with as many as eight layers of suppliers between the worker and the end client. Lacking visibility into this type of activity dramatically increases costs and handcuffs any compliance measures that may have been put in place to protect the hiring organization from risk.
Compliance is a mission critical element of any and all workforce management solutions. Failing to emphasize compliance with laws and business rules can cost a company a fortune. Enforcing compliance across the program should be a main function of any solution. This can include laws and business rules dealing with contracts, background checks, benefits administration, IC/worker classification, sub-contractor vetting and management as well as settlement/financial activities.
Increasing efficiencies as it relates to critical metrics is another main goal of any successful program. Tech tools like VMS solutions are particularly well-equipped to record and monitor efficiency indicators such as time to fill open roles and the consistency/quality of candidates submitted by suppliers. Workforce efficiency solutions can be as simple as consultative assistance provided to an already established internal team to aid in streamlining process and procedures. Consultative solutions help with the organizational practices supporting efficiency. For example, a consultant may recommend lumping niche suppliers under one supply manager to prevent the constant on-and-off usage of one-time use suppliers.
Putting defined processes in place – whether via automation like VMS or managed services – supports tighter control over critically important activities such as how talent is procured and enables stricter regulation over can provide this talent.
Only with strong controls over services procurement management from sourcing – through milestones and deliverables – to payment can workforce management solutions expect to adequately address any pitfalls in delivery of the talent or the consequences of failed.
Solid controls also support the kind of effective communication to all suppliers regarding the expectations are for participation in the program.
There are many other important goals of workforce management solutions that may be more specific to the organization and/or industry of the customer. For a detailed review and assessment of your current workforce management solution and suggestions on how to improve upon existing programs, contact your nextSource representative today.