With the latest estimates from Statista showing that there were an estimate 1.69 million temporary workers in the UK in November 2022, it’s easy to see that the ownership of managing a contingent workforce needs to be fully thought through and communicated across any organisation.
An increasing number of businesses are adopting an agile workforce, comprising both permanent and temporary workers to allow them to respond to changes in demand. This makes it more important than ever to have a process for bringing in contingent workers that’s robust, efficient and delivers when needed.
In this environment, the age-old question of who should own contingent workforce management rears its head once again. Should it sit alongside traditional hiring and management in HR, or should it be seen as a series of processes and contracts that would see it fit into procurement’s portfolio?
There are advantages to each area owning it. As both have certain skills and expertise they could bring to the role. But they also have significant blind spots which create risks from having sole responsibility in managing a contingent workforce.
We’ve known contingent workers are increasingly becoming a key segment of the workforce. For businesses there are advantages to being able to scale and respond to demand quickly through taking on temporary workers. But without careful management the business won’t fully benefit from this way of working.
For instance, there may be one area of the business that’s able to fulfil a need in another team. But without oversight of the resources already in the business and the costs associated with that resource it may lead to duplication, cost spiralling or the need going unmet.
Part of creating a successful blended workforce lies in treating all workers the same and ensuring a consistent experience. Without careful management of the contingent workforce, it’s impossible to do that, heightening the risk of dis-engaged temporary workers and reducing the size of the talent pool for future contracts.
Traditionally it’s been HR that have led the way with strategic workforce planning including managing the skills agenda for the company. They have the skills and knowledge of hiring and managing and that’s a fundamental part of their function. It’s only logical then, that when it comes to who should own the process it would sit within HR.
Talent management and all processes connected to that run through HR. That includes employment contracts, flexible working arrangements and periods of leave and absence. Placing HR at the heart of the need for a contingent workforce and allowing them to coordinate everything from one place would make sense.
With the need for contingent workforces to be treated the same as permanent employees from the hiring process through to the onboarding, attributing HR with this responsibility also brings permanent and temporary workers together and helps ensure there is synergy between the two experiences. This might be a shift for some HR teams that have focused purely on permanent employees but it enables there to be a holistic oversight of all people management within the business, without it being siloed into two different camps. It also builds in the ability for HR to think strategically about whether a role is best suited for a contingent worker or a permanent employee, taking into account wider people impacts and the EVP or CVP that is used in attraction. There’s also the possibility that an individual working on an assignment could be converted to a full-time position.
Visibility of total workforce costs will also allow an oversight of what is most commonly the biggest cost to an organisation and how this is managed and planned efficiently. HR would be hard pressed to carry out this important role without clear oversight and knowledge of the contingent workforce within the business.
Procurement’s primary function focuses on value. Value through pricing, contracts, terms and conditions, partnerships and other formal arrangements. The notion of value is at the heart of contingent worker agreements.
The argument for procurement leading the way when it comes to contingent workforce management is that they can ensure the best price and value in the agreements. With agency costs usually considerably higher than permanent salaries , it’s essential that there is a process in place to monitor costs and standardise them, where possible, across the organisation.
The skills and experience across the procurement team also proves valuable when it comes to performance ,ensuring there are compliant processes and management of the supply chain. Focusing on the strategic and structure of a contingent workforce rather than the people side means that a more formalised process emerges. Bringing together sporadic hiring decisions that might vary across the organisation. But this focus excludes productivity, workforce quality and employee engagement. Three elements that are crucial for a successful workforce.
It’s clear that the best way to manage a contingent workforce across an organisation is through collaboration. Both HR and Procurement have clear strengths but they also have blind spots which, thankfully, complement each other.
Procurement can focus on ensuring value, standardising the process and building a solid supply chain enabling HR to step in and look after the people involve, creating an equal hiring and onboarding process and engaging the contingent workers.
It’s only by working together that rogue costs will be eliminated, standardised pay will be established and high-quality individuals who deliver value to the business will be brought into the company when needed. When managing a contingent workforce is left to just one department the shortcomings of that department will be highlighted – whether that’s in the management of people themselves or errors and overspends in the contracting process. A truly collaborative approach is the only way to successfully manage your contingent workforce.
RPO, or Recruitment Process Outsourcing, is a strategic approach to talent acquisition where organisations outsource some or all of their recruitment processes to an external provider.
In traditional hiring, organisations typically manage recruitment processes in-house, from sourcing candidates to onboarding. This often requires significant time, resources, and expertise from internal HR teams or hiring managers. However, traditional hiring methods can sometimes struggle to keep pace with changing talent demands, especially in industries facing skill shortages or rapid growth.
RPO offers a holistic and strategic approach to talent acquisition. RPO providers like Omni act as an extension of an organisations brand, assuming responsibility for recruitment activities such as candidate attraction, sourcing, screening, assessment, and even onboarding. By outsourcing these functions to specialised experts, organisations can benefit from industry knowledge, resources, and technology to give access to the best talent at pace.
One of the key differences between RPO and traditional hiring lies in the level of specialisation and scalability offered by recruitment RPO providers. RPO partners often have dedicated teams of recruiters who specialise in specific industries or skill sets, allowing them to access niche talent pools and identify high-quality candidates more efficiently. Additionally, RPO solutions are highly scalable, meaning they can quickly adapt to fluctuating hiring needs, whether it’s scaling up recruitment efforts during peak periods or adjusting to changing market conditions.
Recruitment Process Outsourcing (RPO) can significantly enhance your Talent Acquisition strategy by providing specialised expertise, scalability, and strategic partnership. Here’s how:
Specialised Expertise: RPO providers have dedicated teams of recruiters who specialise in various industries, roles, and skill sets. These experts possess in-depth knowledge of the labour market, industry trends, and sourcing techniques, allowing them to identify and attract high-quality candidates efficiently. By leveraging their specialised expertise, RPO partners, like Omni, can access niche talent pools and ensure high-quality people for your organisation.
Scalability: One of the key advantages of recruitment RPO is its scalability. RPO providers can quickly scale recruitment efforts up or down based on your organisation’s hiring needs. Whether you’re experiencing rapid growth, seasonal fluctuations, or project-based hiring spikes, RPO can adapt to accommodate your changing requirements. This flexibility ensures that you have the right resources in place to meet demand without overburdening your internal HR team or sacrificing recruitment quality.
Cost-Effectiveness: RPO recruitment can offer cost savings when compared to traditional hiring methods. While there may be an initial investment in outsourcing recruitment to an RPO partner, the long-term benefits often outweigh the costs. RPO can help reduce time-to-fill, cost-per-hire, and turnover rates, resulting in overall cost savings for your organisation.
Strategic Partnership: RPO goes beyond transactional recruiting by forging a strategic partnership between the RPO partner, like Omni, and your organisation. At Omni, we become an extension of your employer brand and we work closely to understand business objectives, culture, and talent requirements. This collaborative approach allows RPOs to tailor recruitment strategies that align with your organisation’s goals. By working as an extension of your HR team, RPO providers can provide valuable insights, leading practices, and innovative solutions to help achieve talent acquisition objectives.
Recruitment Process Outsourcing (RPO) is a strategic approach to talent acquisition where organisations outsource some or all of their recruitment processes to an external provider, like Omni. The partner is known as the RPO provider and assumes responsibility for various aspects of the recruitment process, including candidate attraction, candidate sourcing, screening, assessments, interview coordination and onboarding.
Recruitment RPO is about leveraging specialised expertise, technology, and resources to streamline the recruitment process and improve hiring outcomes. Rather than relying solely on internal HR teams or traditional recruitment agencies, organisations partner with RPO providers to access a broader range of talent to enhance efficiency and drive better results.
The specific services offered by RPO providers can vary depending on the needs and preferences of the organisation. That’s the beauty of RPO. Some organisations may opt for end-to-end RPO, where the RPO provider manages the entire recruitment process from start to finish. Others may choose to outsource specific elements of the recruitment process, such as candidate sourcing or interview scheduling, while retaining other aspects.
There are several key advantages:
Access to Specialised Expertise: RPO providers have dedicated teams of recruiters who specialise in various industries, roles, and skill sets. This expertise allows them to identify and attract high-calibre talent more efficiently than internal HR teams or traditional recruitment agencies.
Scalability: RPO recruitment solutions are highly scalable, meaning they can quickly adapt to fluctuating hiring needs. Whether your organisation is experiencing rapid growth, seasonal fluctuations, or project-based hiring spikes, RPO can flexibly adjust to accommodate your changing requirements.
Cost Savings: RPO can offer cost savings compared to traditional hiring methods. By outsourcing recruitment processes to an external provider, organisations can reduce time-to-fill, cost-per-hire, and turnover rates, resulting in overall cost savings for the business.
Strategic Partnership: RPO recruitment goes beyond transactional recruiting by fostering a strategic partnership between the RPO provider and the organisation. At Omni, we work closely with our organisations to understand their organisation’s objectives, culture, and talent requirements, allowing us to tailor recruitment strategies that align with the organisation’s goals and values.
