Centralized Contingent Workforce Management (CWM) Saves Organizations Money and Time, Decreases Compliance Risk, New Study Finds.Research Provides Guidance for Making the Business Case for Enterprise-Wide, Centrally Managed and Technology-Enabled CWM WASHINGTON -- A comprehensive study announced today by the Human Capital Institute and six research co-sponsors presents a strong argument in favor of organizations' use of centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. Contingent Workforce A contingent workforce is a provisional group of workers who work for an organization on a non-permanent basis, also known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants. Management (CWM), noting a potential cost savings of 7 percent to 12 percent among organizations that move away from a decentralized de·cen·tral·ize v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es v.tr. 1. To distribute the administrative functions or powers of (a central authority) among several local authorities. CWM process. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the research report, titled "The ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). in Enterprise Contract Talent Management," organizations that move toward enterprise-wide, centrally managed and technology-enabled CWM have the potential to realize significant, hard-dollar cost savings, as well as intangible benefits such as improved compliance risk, time savings and better reporting. "The findings from our research O present an extremely compelling argument in favor of centralized Contingent Workforce Management (CWM)," writes Allan Schweyer, who authored the research for HCI (Human Computer Interaction) Refers to the design and implementation of computer systems that people interact with. It includes desktop systems as well as embedded systems in all kinds of devices. . "Rarely is an independent research organization (such as HCI) able to make so clear cut a recommendation for or against a course of action." HCI embarked on the research in May 2009 with support from co-sponsors Allegis Group This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. Services, Fieldglass, Guidant Group, IQ Navigator, MBO MBO See: Management buyout Partners and TAPFIN Process Solutions. The study, which examines whether and how organizations are realizing a return on their investments in centralized and contingent talent management, consisted of an HCI membership survey, interviews with industry professionals, and an exhaustive review of secondary sources, including case studies. Strong Case for Recommending CWM "Based on these convincing research findings, we strongly recommend that organizations move toward enterprise-wide, centrally managed and technology-enabled CWM," said Carl Rhodes, HCI Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . CWM includes the practices organizations use to manage their outsourced workforce--a flexible portion of the workforce that may include contingent workers contingent worker n. A temporary or part-time worker, usually one working under contract for a fixed period or a specific project. and contracted talent such as independent contractors A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. , temporary workers, freelancers and interim executives. This growing employment category is now estimated to number approximately one-third of U.S. workers. The report indicates that for the majority (90 percent) of organizations, costs associated with establishing centralized CWM are minimal--yet the up-front investment may help Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. professionals save their organizations "hundreds of thousands or even millions of dollars each year." Other significant findings include: * For most organizations (75 percent), contract talent management is seen as strategic in that it can enhance competitiveness and profitability. * A decentralized contingent/contract talent management process can result in a variety of inefficiencies, such as those leading to long hiring cycles, flaws in on-boarding, inaccurate time/attendance and pay records, contractor tenure management difficulties and concerns about co-employment risk. * Some decentralized organizations report an inability to determine their number of contractors, the tenure of those contractors, their skill sets, their total pay and the risks involved in engaging them. * Organizations with decentralized, hiring manager-led CWM programs suffer reduced visibility, increased risk and higher-than-necessary costs. * More than 50 percent of survey respondents utilizing centralized CWM report return on investment (ROI) in three key areas: "reduction in overall spend," "increased output versus full time resources" and "reduction in administrative time and cost." Technologies Explained, Recommended The report also introduces terminology for new technologies and services used by large organizations with significant CWM spend that can help reduce costs quickly and dramatically while reducing risk, improving visibility and increasing efficiencies. Technologies and services cited include vendor management systems (VMS (1) (Virtual Memory System) A multiuser, multitasking, virtual memory operating system for the VAX series from Digital. VMS applications run on any VAX from the MicroVAX to the largest unit. See OpenVMS. ), managed service providers (MSPs), and independent contractor engagement specialists (ICES) or portable employers of record (PERs). Such technologies and services provide a number of payment structures by which organizations can minimize up-front and "out of pocket" expenses. Researchers Offer Ways to Make the Business Case for Centralized CWM According to the research, HR and talent management professionals making a business case for centralized, enterprise-wide CWM should seek an executive sponsor and general leadership buy-in, as well as present these points--critical in today's economy: * An organization with a decentralized CWM process can expect hard-dollar savings of between 7 percent and 12 percent on its current costs following a move to enterprise. * In more than 90 percent of organizations, the costs associated with implementing an enterprise CWM are minimal. * Central, enterprise-managed CWM reduces compliance risk, such as co-employment violations. * Centralized CWM has resulted in shorter hiring cycles, re-use of requisitions, more efficient and effective on-boarding and reductions in contractor time to performance. * Better data and better reports--on which better decisions can be made--are additional benefits of centralized CWM. * With centralized CWM, employers can track how many contractors they have, how long they have been there, and when to off-board them. Additionally, Schweyer writes, respondents advised "O that the business case should reference exactly where and how it furthers the overall corporate business plan." A full copy of "The ROI in Enterprise Contract Talent Management" is available to interested members of the media. The research author, Allan Schweyer, also will discuss detailed study findings during a Masters-level HCI Webcast, which will be broadcast live on Tues., Oct. 6 from 1 p.m. to 2 p.m. ET at www.hci.org. For more information or to register for the webcast, visit www.hci.org or call 1.866.538.1909. ABOUT THE HUMAN CAPITAL INSTITUTE The Human Capital Institute (HCI) is a catalyst for innovative new thinking in talent acquisition, development, deployment and new economy leadership. Through research and collaboration, our global network of more than 160,000 members develops and promotes creativity, best and next practices, and actionable Giving sufficient legal grounds for a lawsuit; giving rise to a Cause of Action. An act, event, or occurrence is said to be actionable when there are legal grounds for basing a lawsuit on it. solutions in strategic talent management. Executives, practitioners, and thought leaders representing organizations of all sizes, across public, charitable and government sectors, utilize HCI communities, education, events and research to foster talent advantages to ensure organizational change for competitive results. In tandem Adv. 1. in tandem - one behind the other; "ride tandem on a bicycle built for two"; "riding horses down the path in tandem" tandem with these initiatives, HCI's Human Capital Strategist strat·e·gist n. One who is skilled in strategy. Noun 1. strategist - an expert in strategy (especially in warfare) strategian market strategist - someone skilled in planning marketing campaigns professional certifications Professional certification, trade certification, or professional designation, often called simply certification or qualification, is a designation earned by a person to assure that he/she is qualified to perform a job or task. and designations set the bar for expertise in talent strategy, acquisition, development and measurement. www.hci.org |
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