Contingent Workforce Solutions
Managed staffing services is increasing within many companies at a tremendous rate and makes up a large portion of a company’s total workforce. We recognize due to this new trend Human Resources, Finance, and Procurement are now facing multiple business challenges. One major challenge is to know exactly how many contingent workers are currently in the organization at any given time and without a centralized systems it will be tremendously difficult. The centralized system will help track, manage and monitor contingent headcount. Another challenge is the inability to track SOW spend, and since there is no visibility into the business and cost of labor. Without centralizing the data it is impossible.
Procurement’s role within the organization is to manage, reduce and eliminate inefficient costs through the art of negotiation. Lets’s focus in particular procurement’s role in relation to Contingent Workforce. There main goal is to negotiate with the individual or consulting firm but by not having a centralized system in place to capture the number of workers, timeline, department/division, bill rate, and the role the worker is providing the results will not be as effective. Contingent workers are your directly sourced temporary workers, interns, consultants, freelancers, SOW and contract workers, as well as independent contractors.
In most organizations a majority of the work driven by these individuals are being billed to CAPEX projects which are hard to track as they do not have a direct impact on the organization’s profit and loss statement. By not having a centralized system highlighting the who/what/where/when organizations may find that they are paying for individuals working on specific projects that are no longer active, or the hiring manager mistakenly has forgotten about the worker.
These excess costs are having a bottom line impact to companies and creating risk and exposure for the business with audit and risk. In our estimation and recent reports, contingent workforce can represent as much as 35% of the total workforce in many organizations. However, organizations consistently underestimate the size of the contingent workforce in their ranks. Carvechi Technology can immediately support Procurement to know how many contingent labor employees work in the Company real-time, how long, where they work, bill rates, and what critical work they are performing for the company. We provide insight & analytics reporting into the data!
How to Gain Visibility?
Carvechi Technology help companies to gain visibility into contingent workers and independent contractors by defining the process and procedures for a contingent workforce solution.
We work with your company to understand the vendor program and contingent spend data for each contracting company. Working with the collaborative stakeholders from finance, HR and procurement to discuss the program requirements, process flows, use cases, and organizational systems helps to understand all the program requirements.
Centralizing the Data
First – We put information on all your contingent workers in one place, regardless of their type and source. We can gather the information from your database or work with your financial services team to access invoice level information.
Second – Our consultants will define a realistic scope and strategy customized for your business. We establish budget baseline and cost savings targets for a Managed Service Provider program.
Third – We develop the request for information and request for proposal documentation including the evaluation criteria for your business. We meet with vendors and help to short-list companies the meet the requirements for the business. Our consultants will lead the RFP process and make recommendations for the ideal MSP and VMS provider that aligns with the business goals and objectives. By using Vendor Management Technology (VMS), you can build a central repository that consolidates all the various types of non-permanent workers across your organization. As hiring-decisions and worker records are typically managed across multiple departments, and even many locations, this process may require a company-wide initiative. We are committed to a transparent process and meeting our commitments. So finally, we will develop the project plan and implementation with clear milestones.
Carvechi Technology understands how to guide organizations to successfully put the pieces together to achieve greater visibility into their non-employee workforce. Our team of experience professional will assist to make the process more smoothly and help companies to achieve their cost saving goals and have great insight into contingent workforce and SOW labor.