Overcome the Chaos of In-House Contingent Labor Management to Support a Total Talent Strategy

Consider the following scenario: Your organization manages a significant volume of permanent hires annually. At the same time, many of your workforce needs are already being — or could be — better addressed through the flexibility of contingent workers. This flexible workforce may include hundreds or even thousands of contract employees across various departments and locations. Coordinating contracts from multiple staffing providers, ranging from large agencies to small shops, can quickly become overwhelming. The situation worsens when business leaders bypass HR to hire workers directly, leaving procurement teams to manage contracts without the necessary structure or support.

As the workforce grows, so do the challenges. Pay rates for the same role vary, agency markups differ, and payment terms range from net 30 to 90 days. Limited visibility into worker quality and compliance further complicates the process.

The question remains: What exactly is your procurement team managing? Is it only temporary labor, or does it also encompass independent contractors and talent related to a statement of work (SOW)? More importantly, how much are you truly spending on your entire contingent workforce?

Whether your contingent labor force is large or small, this scenario likely sounds familiar. Fortunately, there is a better way to manage it — one that provides structure, control and improved outcomes. This structure is provided through dedicated contingent workforce management, supported by your total talent solutions partner. Let us explore some benefits your organization would derive from having a transformative workforce solutions expert by your side.

Cost Control and Reporting

Managing contingent labor in-house can often make tracking expenses and identifying inefficiencies challenging. A provider with total talent capabilities gives you complete visibility into labor costs so you can stay within budget and optimize labor efficiency through the following methods:

• Tracking Headcount Costs: Monitoring workforce expenses to avoid hidden or unexpected charges
• Negotiating Upcharges: Establishing uniform upcharges across suppliers to minimize discrepancies
• Supervising Billing: Ensuring accurate invoices and resolving billing issues, such as overcharging or improper overtime

Risk Mitigation and Compliance Assurance

Managing contingent labor in-house can create compliance gaps, such as missed certifications or incorrect billing. Collaborating with a total talent solutions provider protects your company from costly fines or penalties by:

• Verifying Credentials and Clearances: Ensuring all contractors meet necessary qualifications, including onboarding compliance and pre-start checks
• Establishing Quality Baselines: Setting performance standards to measure work quality and project timelines
• Monitoring Affirmative Action Efforts: Helping meet your good-faith obligations
• Tracking Diverse-Owned Suppliers: Supporting your diversity and inclusion goals by including diverse businesses in your supplier network

Integration of All Labor Categories

Many organizations manage their contingent workforce through programs focusing only on temporary workers. These programs often separate independent contractors and SOW employees into distinct categories, with costs included in broader project budgets. This separation can limit visibility and control over the overall workforce.

A better approach is integrating all labor categories into a unified program, allowing companies to determine the most effective resourcing strategy, regardless of worker type. The benefits include:

• Tracking and Managing All Flexible Labor Categories: Preventing the loss of visibility over independent contractors and ensuring costs are allocated correctly across project budgets
• Ensuring Uniform Cost Tracking: Promoting consistent and accurate cost tracking across all labor types
• Monitoring Affirmative Action Efforts: Helping meet your good-faith obligations
• Improving Workflow Management: Refining workflows to help hiring managers adhere to best practices for all labor types

End-to-End Vendor Management

A total talent solutions provider does not just serve as an intermediary; it actively manages your vendor network, offering enhanced oversight and accountability to ensure you work with the best suppliers for your business needs. This effort includes:

• Evaluating Vendor Performance: Tracking top suppliers based on speed, cost-effectiveness and quality
• Recommending Vendors: Identifying underperforming vendors and recommending changes based on performance metrics
• Overseeing Compliance: Ensuring all suppliers meet regulatory requirements, including diversity goals and affirmative action compliance

Consolidation of Administrative Functions

Managing contingent labor in-house can be overwhelming, especially when juggling multiple suppliers, varying processes and inconsistent invoicing. Your provider can simplify these complexities, freeing you to focus on strategic priorities and enhance vendor relationships by:

• Standardizing Supplier Relationships: Establishing consistent processes across your vendor network
• Negotiating Supplier Contracts: Securing favorable terms to reduce back-and-forth with staffing agencies
• Standardizing Invoicing: Ensuring uniform and transparent billing practices across all suppliers

Ongoing Strategic Partnership and Continuous Improvement

At Sevenstep, our commitment does not end once operations are stabilized. We collaborate with clients for long-term success to establish new goals that align with current needs and market conditions.

We monitor performance, adjust goals and utilize vendor management system (VMS) intelligence to align your contingent workforce with broader company objectives, driving improved outcomes each year.

If you are ready to transform your approach to managing contingent labor, contact Sevenstep today. We can help your organization achieve greater efficiency, compliance and cost control across all labor categories.