Extracted from our eBook, ‘Your Guide to Contingent Workforce Management: A Partnership Approach for Your Contingent Workforce Program’, this article highlights the five main benefits to adopting a hybrid model of contingent program management. Here’s how it works.
For years, contingent staffing models and vendor management systems have provided the staffing industry with the potential for cost reduction, risk mitigation, and increased contingent labor visibility. The gig economy continues to dominate the labor market and in the years to come will be an important component of a company’s business and talent acquisition strategy. As contract workers become more prevalent, organizations are thinking about how they can effectively manage this segment of the workforce.
Traditionally, when an organization considers a strategy to manage its non-employee labor, it looks to outsource to a type of consulting company known as a Managed Services Program (MSP). This model gives the MSP provider control over the program, as well as them becoming the system admin of your chosen VMS technology.
While the MSP model is a great choice, there are other options growing in popularity, such as a hybrid in-house model, which is gaining traction due to its flexibility. This program structure will bring control of the program back to your organization, while leveraging consulting support and services where a knowledge or resource gap exists. Additionally, if your organization is just getting started on the journey to automating and formalizing your contingent labor program management strategy, this solution can provide you initial and continued success.
You might also like: ‘3 Easy Steps to Create a Partnership With Your Staffing Suppliers’
When thinking about a hybrid model like the Shared Managed Services Program at VectorVMS, consider these five big benefits.
1. Control Over Your Program
You know your company culture best, so keep that experience consistent throughout your talent portfolio by maintaining a stake in contingent labor management. It’s best to only outsource areas where there’s a knowledge or resource gap. It’s also recommended to maintain a relationship with:
- Your suppliers while leveraging your technology provider to complete services such as invoicing and technology support
- Your internal stakeholders, not relying on outside management.
2) Time to Be Strategic
The hybrid model allows you to remove the day-to-day operational tasks and offload them to your SMS project management office (PMO). Use newly-available time to kick-start strategy and growth initiatives in your talent acquisition program. Then, leverage your SMS PMO as a consultative resource to draw on industry expertise and other similar in-house program best practices. Remember, strategic objectives align with the ideals of your company because they are initiated by you and on your teams.
3) Lower Costs
A hybrid model means you can enjoy a reduced program fee by investing for only what you truly need in a partnership. Leverage program rebates to fund your internal initiatives and reduce operating costs through relying on SMS PMO for labor intensive tasks. More good news? Hybrid management has no impact on your SG&A (Selling, General and Administrative Expenses).
4) Vendor-Neutral Management
Advantages here include increasing competition, which then reduces cost and increases candidate quality, ensuring that a larger pool of suppliers will take part in your program, and no conflict of interest when deciding on strategic objectives.
5) Focus on Core Business
Going the hybrid route for contingent workforce management frees up your internal staff’s time from mundane tasks that usually arise with this type of work. You’ll benefit from an ability to outsource operational activities to focus on strategic program goals and allowing the SMS PMO, skilled in the technology, to help manage the delivery of the contingent labor program.
Related reading: ‘A Buyer’s Guide to Vendor Management Technology’
A Final Word on Contingent Workforce Management Models
Do one or all of these benefits appeal to you and your organization? Now that you know what your contingent labor program can gain from a hybrid model, the next step is to see if this model works for your company. Reach out to the VectorVMS Shared Managed Services team to learn more and start designing your best-in-class contingent labor program management model.