There’s more to short-term contracts than covering someone’s maternity leave: there are very good reasons to employ contingent labour – for you and the contractor alike! Sam White from Argentus unpacks the strategies behind Contingent Staffing.
Economists have done a lot of analysis on the rise of the so-called “gig economy.” More workers are using short-term contracts and other forms of employment to provide additional income to supplement or replace permanent jobs – think Uber, DoorDash, etc.
But more and more companies in a variety of industries are also bringing on high-skilled contingent labour for white collar positions in a number of impactful business functions like Technology, Procurement and Supply Chain.
These roles typically have similar compensation to permanent employment, with the exception that they’re on a fixed term (typically three, six, twelve, or eighteen months). Working more independently and “hitting the ground running” faster than perm employees, these workers work in consultative fashion to expand Supply Chain and Procurement capability for their clients, and then move on to the next contract.
For many of the top performers, contract work is no longer a stop-gap to permanent employment – it’s an opportunity to work in a variety of industries and projects, and broaden their experience.
So what situations are these companies using contingent staff for?
There are a variety of business cases that corporate leaders are making for contingent staffing, recognising it as a strategic and cost-effective tool in their hiring arsenal.
We put together this infographic to show some of these use cases. It places a special focus on our recruitment specialities of Procurement and Supply Chain, where our clients have increasing needs.
We start from the less strategic, more common reasons for hiring contingent staff, and move into the strategies that the most innovative business leaders around are adopting today.
This article has been republished here with kind permission from Sam White at Argentus. What’s been your experience with contracting and the gig economy, as a worker or in hiring staff? Let us know in the comments below.
As the workforce bounces back, the gig economy is expected to boom. So how will this mode of employment suit Procurement? We asked Prometheia Procurement CEO Jody Rowe.
COVID-19 has raised many challenging questions about the way in which we work. It’s causing individuals and companies the world over to review their operating models. The procurement profession is not isolated from this and will need to think about the security of supply chains, how we work, who to work with, what an effective operating model is, what systems to use, the questions are endless…
This changing environment is driving the need for procurement solutions to be flexible and virtual, and toprovide simple access. We need processes and tools which empower all users and ensures continuity of knowledge, especially for the gig economy which requires access at any place, at any time.
We are also under a lot of pressure to make smarter decisions that mitigate risk, leveraging the best consulting knowledge in the business, while still ensuring retention of key personnel.
It’s becoming obvious that we now need to embrace open systems thatprovide instantaneous connection that enables group collaboration and creates a valued global network and access to knowledge.
The drivers of these changes are simple – it’s down to cost and managing risk. The question is how to get things done whilst keeping overheads down and providing real value? The opportunities of enjoying full-time work at one company for the entirety of your career has greatly reduced. Some industries, such as Oil and Gas, are already acutely aware of the steady shift towards the gig economy, which has been driven by both companies’ and individuals’ needs as people seek improved work-life balance.
Do companies need to maintain a large physical footprint or would they be better reducing their liabilities by gaining access to a diverse, flexible and talented workforce when required? As a result of the COVID-19 pandemic, companies have downsized and placed recruitment freezes, yet have still managed to operate effectively. To me, this demonstrates an underutilisation of resource pre-pandemic.
When the rebound from COVID-19 comes, companies will move even more towards the gig economy to meet their needs for short-term contracts and freelance work. With commodity price fluctuations and layoffs continuing, it is likely we will see this kind of marketplace continuing to grow for the foreseeable future.
In a gig economy, employers have access to a flexible workforce with the appropriate talent available at short notice. There’s no upskilling required as contractors are typically experienced specialists in their field, which can result in projects being completed more efficiently. Contractors often enjoy much greater flexibility in terms of work location, schedule and leave, as well as the excitement and experience obtained moving from one project to another; all of which ultimately adds to their valuable skillset.
Digitisation is paramount for a gig economy to be effective; reliable global access to systems exists and is well-tested. Access to global resources can be sought easily and work can be undertaken anywhere in the world. There are multiple workforce gig economy websites that successfully provide ad-hoc services: you can send a scope, obtain a price and get the work completed.
So why not access procurement in this way?
When you reflect on the way in which we are working in multiple countries – UK consultants working with an Australian client, Australian consultant working with an Indonesian client – you can conclude this new smarter way of working is upon us. Adapting to this change would be pivotal in continuing to deliver value within the Contracts and Procurement function. There’s no denying the function is critical to any business in managing risk, providing strong governance and soundly managing spend.
The answer was to develop a digital platform which provides access to talent across the globe via a flexible and virtual model which provides a cost-effective opportunity to fast track performance, access to procurement professionals that can save time and money, and assistance in managing risk and spend by offering easy-to-use services that can be accessed from anywhere.
And so was born Promitheia Procurement: A comprehensive online procurement tool that provides business with the opportunity to purchase procurement templates and work with online professionals to design any business procurement function to meet their unique requirements.
Obtaining access to high quality consultancy services can often be the crucial factor in the success of a project. But buying advice is also one of the most confusing challenges for procurement. How can we overcome this?
Despite some consolidation in the financial consultancy sector, the overall market for consultancy services continues to grow, with the global consulting market valued at $250 billion.
While technology consultancy is leading the continued growth curve, other sectors including HR, operations and strategy are making strong contributions to overall value. For those seeking consultancy services, the market however can be complex. Is there a way to simplify the complexity of procuring consultancy services?
Why are consultancy services so confusing for buyers?
Much has to do with the breadth and depth on offer. Consultancy services are available in just about every industry possible and the sector continues to grow. The broad reach and sheer volume of suppliers can make it difficult to identify the best consultant for your needs. Take ‘Digital Transformation’ consultancy services as an example. It was barely recognised a sector just a few years ago, now it’s worth over $23billion and represented over 15% of the global consultancy market last year.
Consultancy services are provided by organisations large and small,- from multinational organisations and specialist niche providers to freelance independent consultants – often with much crossover in between. Many of the companies started life offering a single specialism but have grown and added additional services to their portfolios as their sector and market experience has developed.
Consultants often use a variety of language and definitions to describe who they are and what they deliver. With no single regulatory body on board to help define the market, its no wonder that buyers can find drawing comparisons a challenge.
As procurement budgets decrease globally, the lack of resourcing and specialisms often means that in-house buyers are generalists not specialists. As a result they may not have the insights into specific markets to be able to evaluate different consultancies meaningfully.
As a professional buying organisation, ESPO’s recent experience in building its largest ever public sector consultancy services framework highlights just how crowded and complex the marketplace is. It received a record number of tenders from suppliers – evaluating over 240 tenders before awarding 135 to the framework. As part of the process ESPO found that the marketplace is so complex that public sector buyers often remain with the same consultancy provider for years to avoid going through the procurement process again, putting budgets at risk.
Top things to consider when buying consultancy services
Utilising a team of 12 procurement experts with cross sector experience drawn from across the organisation and externally, ESPO was able to effectively evaluate the tenders before awarding the successful organisations a place on the framework. Here are its top considerations for buying consultancy services:
Closely define your outcomes or objectives. By identifying the outcomes, procurement teams can work backwards from the end goal to define the exact service required.
Request case studies. This will help you understand the process for delivery and ensure that the consultant has the right experience.
Review technical capabilities. Whether you’re buying financial, waste disposal or even logistical advice, ensure that the consultants are specialists with the technical capabilities needed to deliver. This may mean that you are required to use a different provider for each project.
Consider using a specialist framework for complex service procurement needs. Framework providers operate under strict due diligence rules and processes so you’re assured of the suppliers’ capabilities.
Sheena Kocherhans is Category Manager for Professional Services at ESPO