The Importance of Total Workforce Visibility for the CPO
The past year has brought about massive disruptions causing CPOs to concentrate on managing risk, future-proofing their supply chain, and maintaining business continuity. Nowhere is this more critical than labor.
Utmost introduces procurement executives to an entirely new and different approach to managing the external workforce, delivering visibility into cost, skills, certifications, and detailed work history across the entire workforce, allowing enterprise organizations to plan for the future.
Did you know:
- A traditional VMS only captures around 6% of the extended workforce
- In most companies, 20% of SOW spend should be reclassified as staff augmentation work
- Without full visibility, misclassification of workers is prevalent and can put companies at risk
Organizational Self Assessment
If you lack a scalable approach to managing the entire external workforce and are unable to deliver visibility into cost, skills, and spend of all workers, it may be time for a new solution. To know for sure, here are a few questions to consider.
Do you know how many extended workers you employ within your organization (i.e., freelancers, gig workers, independent contractors, consultants, outsourced workers, SOW workers)?
If you don't have access to all of your external talent from one central view, it's impossible to successfully workforce plan, mitigate risk, achieve real cost savings, or accurately report to senior management.
Are you able to accurately track on/offboarding activities, expired contracts or licensures, certifications, and other worker-specific data?
If not, you could be opening the company up to unnecessary risk associated with not having a single system of record.
Do you know how all of your workforce is classified to avoid legislative and compliance risk?
If mitigating risk a key initiative for your Procurement function, you know regulations and legislation are constantly changing. Your existing tech stack (including your VMS platform) might be putting you at risk from a compliance and worker misclassification perspective.
Are you able to report on and provide predictive analysis on your total talent spend, including your extended workforce, from one system?
If your like many companies that try (and fail) to pull accurate, real-time data from their VMS, there is a better solution out there.
Do you manage SOW workers in your existing VMS?
For many organizations, the SOW spend far exceeds traditional time-and-materials based workers. This means you're missing visibility into a large area of spend.
If you can’t answer these questions, you’re not alone. Many CPOs are handicapped by a lack of insight into a major expenditure that could be planned, competitively bid, and managed more efficiently.
Resource Library
We’re here to arm you with strategic, relevant information to stay educated on what’s happening in the industry. Here are a few blog posts we think you’d enjoy!
Utmost for the CPO
The "Reinventing Invoicing" episode discusses the often overlooked but critical importance of invoicing and the impact on the extended workforce
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A place for curated, lightly moderated conversations for Contingent Workforce Program Owners moderated by CW Program Owners.
Tune in to our podcasts
Listen to episode on Contingent Workforce Radio where we discuss contingent workforce program management and HR operations.
