Strategic Sourcing for Contingent Workforce Management
With a tailored suite of strategic sourcing services, Source One brings order to your Contingent Labor Workforce, transforming your bottom line and your business.?
Contingent labor allows companies to have scalability during seasonal and cyclical demands as well as additional skills where specialized disciplines may be needed on a project basis.? Several industries are leveraging the operational and strategic benefits of a contingent workforce, including financial and professional services, retail, healthcare, and public services.? Companies that rely heavily on manufacturing as one of their core operations also look outside of the traditional full-time employee model.? These industries can include Food & Beverage, CPG, Aerospace, Automotive, and countless more.? Although more executives recognize the value of a flexible workforce, managing this highly complex and often disjointed category can pose significant challenges, such as compliance-related issues and inconsistent fees.
Common challenges in Contingent Workforce Management include:
- Multiple agencies providing contingent labor services to your organization.
- Multiple agreements with varying terms and conditions including decentralized mark-ups and inconsistent conversion fees.
- Inability?to identify contingent workers within your own walls.
- Inability?to track company assets and access to facilities/offices.
- Hiring managers working with their favorite supplier to obtain talent, which can lead to cost increases.
- Independent contractors working within your organization without properly being vetted as Independent Contractors.
- Increasing risk of non-compliance with IRS due to misclassification.
- Statement of work-based projects having scope creep due to lack of visibility into milestones and deliverables.
- Invoices for SOW projects being paid without verifying completion of work.
Source One can help mitigate the risks associated with your contingent labor category and optimize your contingent workforce management program to drive down your bottom line.? ?Whether your goal is to benchmark your rates?against the market, increase spend visibility, drive standardization and compliance, or leverage volume to reduce costs, we work collaboratively with your team to determine what solution will harness the most value-add and deliver the greatest return on investment.? Our in-house temp staffing subject matter experts will assess the current state of your contingent labor program, and identify opportunities to drive greater consistency in contracting with temp staffing agencies.
We will help you establish a more centralized and controlled contingent labor program that delivers the following benefits:
- Competitive and transparent pricing through negotiated conversion rates, controlled mark-ups, tenure discounts, and a breakdown of cost drivers, outlining bill rates and pay rates
- Increase Compliance through Contract Management to capture markups, Key Performance Indicators, and Service Level Agreements
- Reduce costs and enhance both the visibility and control of program spend
- Reporting Capabilities in the form of monthly reports or dashboards on key staffing metrics
- Consolidated Invoicing with preferred payment terms
- Secure best in class strategic partner with experience in the entire life cycle of the recruiting process to provide staffing services
Our industry knowledge, in-house subject matter experts, and proprietary volumes of real-time market data combine to align a customized contingent workforce solution to your needs and budget requirements. Source One’s contingent labor vendor cost reduction and?strategic sourcing model is all-encompassing and scalable, which will allow your organization to reduce the overall costs allocated to temporary employee and Statement of Work services, secure favorable contract terms and performance levels, and ensure scope alignment from the staffing and consulting agencies.
The marketplace is flooded with options for temporary staffing support. While the contingent workforce is continuing to change and grow, Source One has the ability to navigate the crowded temp staffing supplier landscape and ensure you partner with contingent labor staffing agencies that are reputable and have the capability to flex quickly to meet your fluctuating operational needs, all while serving as a true extension of your company’s workforce.??Through effective analysis and a strong management plan you can control costs, compliance and risk without compromising the quality or delivery of the services that are needed. Contact Source One’s Temp Labor?reduction experts today to get started.
HR Category Expertise
Specialized cost reduction expertise in the complex and previously off-limits Human Resources spend category
Temp Staffing Cost Reduction
Data Collection for Temp Labor
Data collection must be performed first to understand your current contingent workforce –?speaking with all internal departments that utilize temporary labor or SOW based work, and?each of the staffing agencies to request the fully executed agreements (if unavailable internally) and current usage reports to gain an accurate picture of the workforce. Included in this?must be usage, pay rate, bill rate, mark-up percentages, overtime hours, overtime bill and pay rates.
Strategic Sourcing and Cost Reduction for Contingent Workforce Management
If the contingent labor spend for your organization is approximately $10M/year, working with a Managed Service Provider (MSP) and/or Vendor Management System (VMS) may be your best next step. To choose the best MSP for your organization, the following steps should be completed after data collection:
- Develop and execute an RFP to assess the agencies capabilities and expertise
- Analyze the agencies responses and score them, to assist in determining the partner with the best fit
- Decide which pricing model is the best option for your organization
- Determine the best sourcing option (vendor-neutral, master vendor, or blended model)
- Create a cross functional team that includes all areas of the business that uses temporary workers or Statement of Work Agreements to work together with the MSP/VMS for the implementation of the program
Insurance and Benefits Cost Reduction
Source One’s proprietary market intelligence allows you access?to the most-qualified and best-fit brokers/consultants. However, it is important to understand that those brokers/consultants will still have an imperative to sell the most expensive plans and options, within the bounds of practicality to your stated objectives. After all, the nature of any broker/consultant is often driven around maximizing employee adoption and increasing commissionable contracts.
Source One can help prepare you for this eventuality,?arming you with strategies and techniques for managing your brokers/consultants. When it comes time to renegotiate your plans, you and your brokers/consultants will make the most well-balanced decision that secures your value, controls your costs,?and minimizes your risk in the short- and long-term.
Benefits & Insurance Category Management Expertise