Your workforce is larger than you think. Look beyond your employees and contingent workers and you’ll realize there’s another large, powerful force at play. One that probably isn’t on your radar.
Services providers, such as consulting firms, marketing agencies and IT outsourcers, play a crucial role in helping organizations get work done. They are a vital part of today’s workforce, comprising nearly one-fifth of workforce spend, and bringing much-needed skills to the table. They carry out mission-critical work, often operating at the heart of the enterprise.
In the oil and gas industry, services providers play a major role in shutdown/turnarounds, which cost millions each day and must therefore be completed as soon as possible. Many organizations rely on consulting firms to help them build and execute their strategies – particularly around digital transformation. Banks engage IT consultancies to improve their online and mobile banking platforms and call centers to support their customers.
In many organizations, services providers operate as an invisible workforce. How can management ensure that this often-unseen workforce consistently delivers maximum value? And how can organizations make sure that workers’ access to confidential data and systems is turned off at the end of the engagement?
Molly Spatara, Global VP, Brand Experience, SAP Ariba and SAP Fieldglass
As the demand for independent talent grows, many organizations are using their own resources to directly source top independent talent without engaging third-party staffing agencies or consulting firms to perform recruiting functions. Direct sourcing affords many economic benefits such as avoiding high-priced staffing markups, decreasing overhead costs by hiring fewer full-time employees and filling project-specific roles with the right-priced independent talent.
But direct sourcing is only a small part of the picture. In order to compliantly utilize independent talent end-to-end, organizations must build a Direct Access program that encompasses finding, sourcing, engaging, paying and managing independent workers. Here are five best practices organizations should keep in mind when creating a Direct Access program to source and engage independent professional talent.
1. Drive Support from the Top Down
A lasting and successful Direct Access program begins with the right leadership support and sponsorship. This support must be driven from the top down by a senior business leader who has influence over the managers who will be sourcing and utilizing independent talent.
While a top-down approach is not the only method, attempting to build a Direct Access program from the bottom up is almost always a long and arduous path. Internal adoption is much slower and disjointed as the process relies on word of mouth and proof-of-concept in small groups.
It was nearly 90 degrees and the breeze was barely offering any relief from the heat radiating off the white sand. I love the beach but there are times when even the relatively cool, 80-degree water can’t offer any way to provide relief. I looked at all those beach front homes with their cover decks, fans and A/C with envy. Then just when I was thinking of packing it up and heading for the air-conditioned car, clouds rolled in and covered the sun. Temperature moderate, winds began to pick up and I could see the telltale signs of a shower in the distance. Relief was coming thanks to the cloud.
Being on the beach can make you feel a bit exposed. Like a small business that is so vulnerable to the whims of the market, it can be tough to find relief that is offered to the larger competitors with resources and plenty of volume to offer to the latest solutions providers. With recent advances in technology, that is beginning to change thanks to the cloud. Take the workforce management systems for example. Finally contingent workforce management systems are in the cloud. That means a small or medium sized business (SMB) can get the control, visibility and risk mitigation that has previously been available to only larger enterprises. Like that experience on the beach, this cloud is bringing relief to SMBs who have grown to embrace the use of the external workforce.
Jay Lash, Principal Consultant, Compass Rose Advisory