According to a US Government Accountability report, 40 percent of the US workforce is made up of contingent workers, with the average organization having 18 percent of their workforce employed on a contingent basis.
The report estimates that by 2050, 50 percent of the US workforce will be made up of freelance or contingent workers.
Procurement’s role in the contingent workforce
The job of a procurement team is to ensure that value is driven to your business through pricing, terms and conditions, contractual arrangements, business terms, vendor performance, supplier rationalization and many other cost-saving strategies.
Those in procurement can help your business obtain contingent workers for the best possible price, from the best possible vendors, but aren’t necessarily experienced in the “human side” of hiring workers.
HR’s role in the contingent workforce
The focus of a HR team is on the hiring, administration and management of a company’s workforce. They manage people to ensure they are happy during their time at the company.
HR departments focus on areas such as talent acquisition, talent management, retention, employee relations, payroll, benefits and training. While procurement focuses on executing business terms, supplier management, cost optimizations and internal client satisfaction.
As the workforce trends towards contingent, however, HR needs to have input and visibility into all forms of resourcing.
HR is able to give your company a holistic view of the work being done, and how it affects the overall work product, environment, culture and hiring processes. As your company moves forward, HR can help your organization decide whether it is best to hire a consultant, contingent worker, temp or full-time employee.
Yet, since HR typically centers on overall talent and workforce management, typically related to full-time, long term employees, there are times when non-employee/contingent workers would be excluded from general HR oversight.
What does this mean for small and medium-sized enterprises?
Many organizations don’t have the luxury of building huge HR and procurement teams to fill their workforce needs. Instead, these companies will have small, or maybe even one person, teams. Many hiring managers are typically trying to manage their own non-employee workers. It isn’t until a problem becomes acute that they turn to the help of either their HR or procurement team.
Final Thoughts
Managing contingent workers should be defined from the outset. For those companies with both a Head of HR and a procurement team, the question of which department should be responsible for its management will be a common question.
The Conexis VMS Difference
Conexis VMS is an award-winning vendor management system built for organizations that want the power of enterprise software without the complexity or cost.
Leveraging the latest technology, Conexis VMS delivers the expertise, reliability and security of enterprise systems, while offering the flexibility, user friendliness and tailored, personal service you require. Learn more about our Company and what makes Conexis VMS different.
Discover the Power of Conexis VMS
Conexis VMS is trusted by staffing agencies, MSPs and leading organizations to modernize and manage their contingent workforce programs. Here's why organizations choose Conexis VMS:
-
Modern VMS Technology - Built on the latest AWS microservices architecture and Open API
-
Fast Implementation - Get up and running in under a month, free setup and training included
-
Fully Branded White-Label VMS - Your Logo. Your Domain. Your Branded Communication
-
Flexible Pricing - No setup fees, with free implementation, training and account management
- Personal Attention - Experienced senior account management from implementation onward
Switching Your VMS or Just Getting Started?
We work with teams at every stage, from first-time buyers to companies replacing outdated platforms that can't keep up. Either way, we'll show you what a modern VMS looks like, up and running in under 30 days.
Read More
