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Posted by Cori McKee, VP Sales and Solutions, Hays Talent Solutions on Thursday, Sep 28, 2017
With 800 attendees, more than 80 speakers covering 30 or more topics, the CWS Summit last week was a rich source of expertise and insight. After listening to a number of the talks, and talking to both buyers and vendors during the two day conference, here’s what stood out to us from the event.
One question we frequently hear is “what’s next”? Once you have a mature MSP and are realizing all the cost savings, risk reduction, and improved visibility that comes with a program that is more than one iteration in, it’s natural to look for the next step. The answer in this case is already being rolled out widely in Europe, and the Staffing Industry Analysts expect use of direct sourcing to double by 2020.
Direct sourcing gives you a dedicated individual or team who are hiring directly for your company, usually at a reduced rate. It improves time to hire by maintaining an engaged pool of contingent workers, and helps build your brand as an employer of choice.
We see direct sourcing as part of the increasing trend towards total talent management because it often evolves into full time recruiting as well. As workers become happier to cross back and forth between full time and contingent work, the divide between these types of hiring break down and it no longer makes sense to have two separate providers and two separate programs.
Constant improvement and new developments in technology can seem like as much of a challenge as an opportunity if you aren’t clear on your priorities and how new technology aligns with your business needs. One thing is clear – this is no longer the two player VMS market that dominated for many years. Today there are a number of different systems that can manage the same scope, and you can mix and match services for everything from tracking temps to employee referrals. We’re seeing many employers start with something targeted, such as outsourcing temp and contract payroll, and then re-assessing their business needs as their contingent workforce grows and changes.
But what should you do with all these new opportunities? The first step is to determine what the biggest obstacles are in your current contingent worker or RPO so you can find targeted solutions. There is a technology solution for almost every problem, so start by identifying the one area that causes the biggest delays or costs and find out what options exist for outsourcing. Ask your current provider which programs they can integrate with for a seamless user experience, both internally and externally.
The grey area of Statements of Work continues to cause Contingent Workforce program managers, senior executives and MSP providers sleepless nights, while providing hiring managers who have not been brought into the program a hiding place for rogue spend.
SOW plays an important and strategic part of any workforce plan, especially as the “gig economy” gathers pace. However, it can leave you open to lack of visibility heightened risk due to worker misclassification, lack of compliance checks and onboarding procedures. That’s why it’s imperative to bring your MSPs and SOW suppliers together, or manage SOW under your existing MSP where possible.
For clients, an MSP program translates into significant savings, higher quality service, higher quality of hire, more effective rate and contract negotiations and competitive bidding processes. When you introduce SOW supply into the program these benefits are magnified, and more importantly than just cost savings it provides the safety net to ensure compliance across the whole contingent workforce program.
Want to know more about direct sourcing but missed CWS? Register for our webinar on October 3 or contact us today.