New York and Melbourne, Australia — May 17
A recent market survey from PageUp People, a talent management company, highlights the need for centralized contractor management processes that support longer-term engagement and effective implementation.
The market survey found that while business units are primarily responsible for engaging and managing contractors, nearly two-thirds of the surveyed companies operate a decentralized contractor management process.
According to the survey, conducted in March, 65 percent of companies pinpoint creating a visible talent pool as the largest contractor workforce related issue; however, only 39 percent of those surveyed were using a technology solution – 61 percent are still using either a paper-based system or spreadsheets.
By having a centralized contractor management process in place organizations may gain visibility into the talent pool and may align the engagement and deployment of contractors with their organizational objectives and strategic direction. The PageUp People survey indicated that just half of those surveyed have a clear understanding of contractor spending and only 47 percent have a clear understanding of the number of contractors employed by their organization.
"With contingent workers accounting for as much as 25 percent of the workforce, it is imperative that organizations streamline the way contract workers are managed," said Deborah Mason, PageUp People Regional CEO. "Contractors need to be onboarded in the same manner as traditional employees and centralization allows organizations to monitor these processes and audit for improvements on an ongoing basis."
As businesses experience a growing contingent workforce to fill skill shortages and create flexibility, a centralized process can dramatically reduce the costs associated with contract talent, including suppliers. When it comes to recruiting contractors, 81 percent of those surveyed had preferred supplier agreements in place. However, a majority of those companies pointed to business units' compliance in using preferred suppliers as the biggest challenge surrounding supplier management.
Another benefit to streamlining contractor management stems from an aging workforce. As senior management employees return to consulting after reaching standard retirement ages, a seamless, centralized process allows an organization to easily create and manage this pool of talent.
Other benefits of a centralized contractor management process include:
Ability to find, attract and retain talentIncreased visibility of best fit for position
Faster placement and seamless rollover of talent
Decreased turnover and advertising spend
Reduced billing errors
Increased organizational efficiency due to a standardized process and enhanced reports
Source: PageUp People