NEW YORK, NY and MELBOURNE, AUSTRALIA – May 16th, 2011 – A recent market survey from leading Talent Management solutions provider, PageUp People, 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% of companies pinpoint creating a visible talent pool as the largest contractor workforce related issue; however, only 39% of those surveyed were using a technology solution – 61% are still using either a paper-based system or spreadsheets.
By having a centralized contractor management process in place, organizations not only gain visibility into the talent pool, but they can closely 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 spend and only 47% have a clear understanding of the number of contractors employed by their organization.
“With contingent workers accounting for as much as 25% of the workforce, it is imperative that organizations streamline the way contract workers are managed,” noted 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% 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 talent
- Increased 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 standardised process and enhanced reports
- Overall transparency