Cost. Compliance. Efficiency. Visibility. Quality. These are all on the radar of any procurement leader managing a workforce of gig workers, temps, independent contractors, and full-time employees. Having a blended workforce brings strategic advantages but also introduces new challenges that many companies struggle to manage.
The reality is that most companies are overspending on their contingent workforce programs and don’t even know it. They’re facing increased compliance risks and inconsistent talent quality and operating with limited visibility into their programs. These challenges compound without proper systems and processes, making it hard to optimize contingent workforce investments and demonstrate value. This is a headache for procurement teams who need to address five interconnected areas:
- cost containment,
- compliance risk,
- operational efficiency,
- talent quality,
- and program visibility.
The good news is that these issues can be solved by partnering with the right workforce solutions provider. The ideal partner anticipates and solves problems proactively, not just reactively. They achieve this through strategic foresight, using data-driven insights to identify savings opportunities and implementing continuous process refinements that automate workflows, enhance user experience, and reduce costs.
Below is a breakdown of procurement leaders’ core objectives and how the right partner addresses each:
Addressing Cost Control Challenges
Cost control is one of the biggest challenges in managing a contingent workforce. Inconsistent billing rates, rogue spending, and lack of budget oversight can quickly get out of control. The right partner offers solutions like:
- Rate Card Standardization through a Vendor Management System (VMS) to ensure uniform pricing across suppliers.
- Supplier consolidation to leverage volume discounts and enhance negotiation power.
- Statement of Work (SOW) Governance to prevent misclassification and additional costs arising from undefined scopes of work.
- Benchmarking and market rate analysis for informed negotiations, allowing you to strike the right balance between quality and cost.
Navigating Compliance and Risk Mitigation
Compliance is another critical area where procurement leaders may stumble. Worker misclassification, co-employment risk, and regulatory violations can result in significant legal and financial consequences. A competent contingent workforce partner implements effective solutions such as:
- Classification Tools to ensure proper categorization and compliance with legislation (e.g., W-2, 1099).
- MSP oversight to enforce policies across suppliers uniformly, maintaining compliance and reducing risk exposure.
- Auditable workflows within a VMS to track engagements and approvals, which help facilitate transparency and accountability.
Process Efficiency and Scalability
Manual processes and decentralized hiring can slow down requisitions and onboarding, affecting overall efficiency. A reliable partner can transform these processes through:
- Automated workflows via a VMS for requisition, approval, and timekeeping, streamlining operations for your team.
- MSP partnerships to offload administrative tasks, allowing your internal team to focus on strategic goals rather than getting bogged down in day-to-day processes.
- Self-service portals for hiring managers and suppliers that facilitate faster communication and decisions.
- Templates and intake forms to ensure consistency in job postings, leading to shorter cycle times.
Visibility and Data-Driven Decisions
Fragmented data across business units makes it hard to track performance, spend, and trends. A proven contingent workforce management partner will give you a holistic view of your workforce through:
- Centralized dashboards to monitor and analyze various metrics across the enterprise and see supplier performance, contract compliance, and overall spend.
- Spend analytics by department, role, and supplier to identify high-spend areas, find savings opportunities, and assess supplier relationships.
- Forecasting tools to anticipate future resource needs based on historical usage and market trends, so you have the resources to meet upcoming demands.
- Program audits and reviews to uncover gaps in compliance, inefficiencies in processes, and opportunities for improvement.
Talent Quality and Access
Another pain point is talent quality and access. Poor supplier performance and lack of visibility into talent pipelines can hinder finding the right fit. Effective partners address these issues through:
- Scorecards and KPIs to monitor supplier performance and candidate quality, ensuring that only the best talent is presented.
- Tiered supplier models that provide access to a diverse range of candidates while optimizing quality.
Partner with Atrium
Choosing the right contingent workforce partner is a strategic move that can effectively address core procurement pain points. Investing in a robust workforce management strategy today ensures that your organization is well-equipped to meet the demands of tomorrow.
With an award-winning suite of Extended Workforce Solutions, Atrium optimizes cost savings, improves efficiency, and reduces risk. Contact us today to learn more about how we can empower you by providing the right talent at the right price.
