Contingent labor as a spend category continues to grow and today represents a significant percentage of overall indirect spend for many organizations. According to Deloitte, some large enterprise organizations report spend focused on contingent workers equals the rest of their entire procurement spend! Many enterprise organizations have already determined that an MSP/VMS solution is critical to success when it comes to contingent workforce management. Yet the mid-market still labors with low adoption of these solutions. Here’s what the mid-market can learn from the hard-won wisdom of their enterprise-level counterparts about the necessity of MSP/VMS solutions for contingent labor procurement.
Oct 15, 2019 6:18:15 PM
Oct 11, 2019 1:41:32 PM
Tail spend is defined as the roughly 20% of a procurement department's spend allocated to non-core transactions. Typically, this is spend on items not significant enough to be run through a procurement process, typically due to a high volume of small suppliers and limited in-house resources available to manage them. For most organizations engaging niche suppliers to accommodate specialized contingent staffing needs, this type of niche spend often falls into the “tail spend” category. While spend in this bucket may be small overall, the risks associated with workforce procurement may represent outsized risks and as such, it warrants increased attention to avoid potentially costly problems. Here’s what you need to know.
Jul 18, 2019 3:11:59 PM
CFOs typically weigh the potential for cost savings heavily when deciding whether investment into new services and technologies makes sense for their organization. When it comes to deciding whether or not to invest in managed services programs (MSP) for contingent workforce management, it is critical that a CFO consider both the hard and soft cost savings that are commonly captured through outsourcing a non-core business function to a provider with specialized expertise in the relevant processes. Here’s a basic explanation of how both the hard and soft savings are captured in significant measure by engaging an MSP for contingent workforce management.
Jan 10, 2019 1:31:38 PM
Editors Note: The World Economic Forum recently published the Future of Jobs Survey. From the companies who responded, 61% are likely to engage new, temporary staff with skills relevant to new technologies; 64% are likely to outsource some business functions to external contractors. With this in mind, nextSource is re-posting one our most popular blog articles (originally published in October 2015) to help you determine if engaging contingent labor is right for your organization. Enjoy!
So you’re the person responsible for HR at a small to moderate size business (an SMB in the parlance of the times) and you’re growing. But you’re not sure if the growth will be sustained or if it will be halting and unsteady. Or perhaps you have seasonal peak periods to accommodate. So you’re considering initiating a contingent workforce strategy for your organization. You’ve read the articles in Entrepreneur, Inc., Fortune and others extolling the growth of contingent labor as a part of the overall workforce. But is this strategy right for you? Here’s a simple primer to help you weigh some of the potential benefits and downsides of contingent labor.
Dec 27, 2018 10:00:00 AM
As has been our tradition here at the nextSource blog, we’re once again looking back over the last four quarters of content we’ve produced on a wide range of topics relevant to workforce planning and management. It is always interesting to make this review as it provides a tidy summation of the state of our industry and helps keep us focused on the subjects most relevant to workforce management professionals seeking to remain at the bleeding edge of developments and trends affecting their respective organizations. So, without further ado, here’s the recap of the road we’ve all traveled in 2018.
Dec 12, 2018 1:07:06 PM
By all metrics, the projections for employment prospects in the coming New Year are excellent. Unemployment is at near-record lows. With hiring demand high and wages rising in response, hiring organizations are busily engaging practices and technologies to help increase access to in-demand talent amidst short supply of qualified candidates. Yet, at the risk of being a holiday “buzz kill,” we’re making a contrarian recommendation: be prepared for an unexpected and dramatic reversal of today’s robust labor landscape.
Nov 30, 2018 1:19:15 PM
Thorough workforce management professionals spend time monitoring minimum wage changes in the states and localities in which they have employees working, ensuring that pay rates for hourly wage earners (non-exempt employees) are set correctly in a VMS and for payroll purposes. Much less frequently examined are the minimum salary requirements in place for exempt (salaried) workers. Did you know that several states have weekly minimums in place for salaried employees that need to be reviewed?
Aug 22, 2018 2:28:51 PM
Have you ever wondered why companies partner with EOR firms to payroll pre-identified candidates? It’s all about the cost savings, efficiency and expertise an EOR firm can provide to organizations to help them save time and money.