“Strong growth, confidence and optimism” screams the headline of a Q3 market review published by the National Center for the Mid-Market. With this positive outlook, there has never been a better time for mid-market organizations to adopt the highly effective workforce management strategies that their larger counterparts are already using. Here is a closer look at the report and some specific strategies mid-market organizations should pay attention to.
Highlights of the report state, “In the third quarter of 2017, middle market companies continue to report strong growth, confidence, and optimism. At 7.0%, year-over-year revenue growth remains steady and the 6.4% growth in employment is well above the historical average. While confidence in the U.S. economy is down slightly from the first quarter of the year, global and local economic confidence remain near peak levels.”
It is interesting to note that the 6.4% employment growth figure is nearly twice the average for the past few years. This means that mid-market organizations are taking advantage of the revenue growth by investing in personnel to grow their businesses. The question to ask is “how best to invest these hiring dollars for maximum return?” At nextSource, we believe it makes best financial sense to pursue the same flexible, scalable and proven strategies leveraged by the largest organizations to develop a modern, twenty-first century workforce with all the benefits that come with it. Here are several strategies to consider if you’re responsible for workforce management within a mid-market concern.
Managed Service Program for Contingent Workforce Management: Maybe your organization hasn’t made use of temporary labor, independent contractors or project/SOW assets because of the complexity of sourcing, benefits administration and compliance risks associated with this strategy. Engage a managed service program (MSP) to take advantage of the efficiency and productivity benefits of the contingent workforce. The MSP model effectively outsources the processes of contingent workforce management to experts skilled at delivering greater visibility and efficiencies across all temporary labor suppliers and talent sources.
MSP users enjoy higher temporary labor fill rates and improved cost controls. Best of all, MSP services address the regulatory compliance issues to ensure proper use and utilization of all resources sourced and managed by the program so you can rest easy and focus on improving overall workforce efficacy. nextSource MSP customers report increased access to talent and job fulfillment, decreased risk through compliance management and quality measures and increased process efficiencies which drive visibility and cost savings.
Vendor Management System Software Tools: VMS tools often work hand-in-hand with an MSP solution to phenomenal effect. These tech tools automate and manage workforce management processes such as job requisition creation, supplier order distribution management, credentialing, screening and employee on-boarding, on-assignment timekeeping and approvals, invoice administration and more. The best part of a VMS platform is that it can be used to manage, measure, track and improve processes not just for the contingent workforce sourced via an MSP program. They are also very useful in the management and administration of full time resources and are a boon to HR practitioners.
One of the key benefits that flows from the implementation and use of a VMS solution is the data collection and storage enabled by a workforce management software. With the data collected and a user interface providing easy data analytics, organizations gain critical insight into workforce performance and efficacy. These tools help improve overall workforce performance while they minimize exposure to all manner of workforce management risks.
Download and read this free eBook on how VMS and MSP solutions work in tandem to provide significant benefits. The current environment is strong for mid-market companies and is projected to remain so for a while. In this time of strength, smart companies are making investments into cutting edge workforce management systems. The ones that do will be very glad they did when the labor environment experiences downturns which are inevitable in the business cycle for all size companies.
Take the opportunity to reach out to nextSource today for more detail on how to capture and protect your competitive advantage with MSP and VMS programs for the mid-market.