The Rise of Contingent Workforce Programs
The traditional workforce model is evolving. We’re witnessing a significant rise in contingent workforce programs. These programs are not just a trend; they’re a strategic response to the growing need for flexibility and specialized skills in the marketplace.
What does this mean for businesses? It’s a shift towards managing a blend of permanent employees and non-permanent staff, such as freelancers, contractors, and part-time workers. The challenge here is not just about managing these diverse work arrangements but doing so efficiently and strategically.
Defining Services and SOW Procurement
Services procurement, synonymous with Statement of Work (SOW) procurement, plays a pivotal role in this new workforce ecosystem. It’s about procuring services – not just goods – which requires a different management approach. SOW procurement encompasses contracts that cover various worker types, including both internal employees and external workers like independent contractors or resources from vendors.
Exploring SOW Projects
SOW projects come in various flavors. Each type has its unique management requirements, especially when it involves a mix of different worker types. A critical aspect here is covering all related project expenses, which can range from direct labor costs to indirect expenses like cloud computing costs, hardware, or software.
Tools in Workforce Management: VMS/CWM and Beyond
The market offers various tools for managing this complex scenario. Vendor Management Systems (VMS) and Contingent Workforce Management (CWM) platforms are common, but they have their limitations. For instance, VMS is great for tracking vendor-provided resources but often lacks direct access to independent contractors or full-time employees. CWM platforms are broader, designed for managing contingent workers, yet they may lack integration with employee data or core finance systems.
Let’s not forget about project management tools like Monday and procurement systems like Jaggaer. Each brings value but also has its limitations in terms of offering a comprehensive, unified view of the workforce and project expenses.
The Role of MSPs
Many companies opt to have Managed Service Providers (MSPs) manage their contingent workforce. While this outsources the headache, it introduces another layer of complexity and cost. And these MSPs often use their own VMS/CWM systems, adding to the fragmented view of workforce management.