Meeting the Operational Challenges of a Nontraditional Workforce

Some people resist new processes, while some embrace it. Regardless of your comfort zone with change, a workforce of transitional generations, modified attitudes of work and life balance and an evolving marketplace structure is transforming the way we work, manage and recruit.

One of the shifting tectonics of talent acquisition and retention is the growing use of managed service providers (MSP) for the most effective alignment of a nontraditional workforce.

MSPs have become the agents of change for the contingent workforce solutions most deployed by agile corporations today. Putting such a hiring model into play requires a good deal of consideration combined with prudent implementation.

Making the Change

Launching an MSP solution means changes are in store for contractors, hiring managers and suppliers. Stakeholders need to be engaged, consulted and trained effectively. Normally, this transition will require a minimum of a 12-week period, but can be much longer depending on the complexity and size of a workforce. Effective implementation will require:

  • A standardized recruit-to-pay process
  • VMS technology that can help enable standardization as well as the automation of the recruit pay process. It can include the on-boarding and off-boarding of the contingent workforce as well.
  • Dedicated resources that help bridge permanent workforce and contingent workforce strategies, meshing corporate culture and business demands.
  • An optimal supply model that ensures whatever MSP solution model is chosen, an organization has a supply panel of agencies that can effectively serve a firm’s needs. That includes a determination of the proper vendors who have expertise in specific recruitment categories.
  • Alignment with permanent recruitment strategies that can include candidate sharing, which may facilitate possible transitions from temporary to permanent positions. The reverse is also feasible as permanent workers may opt to move to freelance or contract positions.
  • Performance management that makes certain that hiring managers are effectively managing contractors under their direction with performance reviews and other metrics as well as determining that supply panel performance is meeting contractual obligations.
  • Strategies to drive cost reductions. A key driver for many organizations is the potential cost benefits, and expense reduction strategies should be considered and documented. Goals for additional cost savings should be set for each year.
  • A competitive and scalable model that is rapidly flexible in response to demand. There can be large fluctuations in the seasonal use of contingent labor as well as in response to market and economic factors.
  • Continuous improvement. Regardless of the MSP model implemented, a substantial benefit will be improved reporting of workforce metrics as well as measurement and accountability of the hiring agency supply panel.

The move to an MSP model to manage a nontraditional workforce can have a positive impact on productivity and profits. It will also allow the utilization of a nimble talent pool, fine-tuned to shifting demands. But it requires managing change. But as former General Electric chairman and CEO Jack Welch said, “Change before you have to.”

Learn more about how an MSP model can help your business. Contact us today.

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