Gig Workforce Management Is All The Rage These Days
Gig workforce management (GWM) is all the rage these days. That’s evident from much of the industry news we hear regularly:
- It’s estimated that over the next three years, the average contingent workforce will grow by nearly 30%
- 62% of enterprises perceive gig-economy labor as a vital component of their overall workforce
- 37% of companies surveyed stated they are planning to adopt a solution for managing their independent workers over the next 12-16 months
It seems there is no stopping this train. Even companies like LinkedIn are throwing their hats in the ring.
By the end of 2017, gig workers comprised 40% of the world’s total workforce.
It is obvious that contingent labor is important for most companies, and if this trend continues, companies will need new strategies to attract and manage independent contractors, SOW-based labor, and freelancers. In fact, some experts argue that most organizations are woefully unprepared for what lies ahead.
Is your company ready for the new world of employment?
Imagine managing your external workforce with confidence, knowing that you’re concentrating on the right aspects of your GWM program and following the lead of best-in-class organizations. It is possible, especially if you know exactly what aspects of your gig workforce management program you need to focus on to get results.
Gig Workforce Program’s Needs & Priorities
A 2019 study indicated that their organizations will focus on the following critical areas in the next 12-24 months:
- analytics and business intelligence: 73%
- talent engagement/management: 61%
- spend/supplier management: 57%
- collaboration with procurement and HR: 48%
- compliance management and risk mitigation: 44%
There is definitely a need to zero in on these areas. Here’s why:
- only 51% of external labor and services spend is formally accounted for
- 47% of respondents report a lack of total contingent workforce visibility
- 51% of respondents feel pressure to drive cost savings
- 63% of respondents identified a need for top-tier talent and skillsets
Although this is problematic, it also presents a huge opportunity for improvement. Companies that take the time to investigate the potential holes in their GWM processes increase their chances of business success.
5 Pillars Of Focus For A Successful Gig Workforce Management Program
Do you want to leverage your contingent workforce program to the fullest extent? Here’s where you need to focus your efforts.
- Analytics and business intelligence: Data is a key component of contingent workforce management. Collecting and analyzing data allows you to spot trends and irregularities. It also gives you visibility into spend, suppliers, performance, and more. Best-in-class organizations use real-time reporting, agile analytics, and deep-dive functionalities to manage their contingent workforce. In fact, 37% of best-in-class organizations use analytics and business intelligence tools to make decisions about their future use of contingent labor.
- Talent engagement/management: In most organizations, contingent labor touches multiple areas of the company. That includes IT, finance/accounting, administration, sales, and marketing. Moving forward, success will require new strategies and tactics for managing non-traditional talent. According to Ardent, the “talent” focus of GWM will increase over the next two years.
- Spend/supplier management: Eliminating rogue spend is just one way to realize cost savings. The bottom line is that a fragmented model will not cut the mustard. Organizations should seek to increase their effectiveness. Gaining control of your suppliers is the first step to sourcing the best contract talent at the best rates.
- Collaboration (HR, Procurement, etc.): Organizations that want to remain competitive will need to get all of their business functions operating cohesively. For example, HR and Procurement will need to work together to manage your extended workforce program.
- Compliance management and risk mitigation: Mitigating and managing risk are primary concerns when dealing with an extended labor force. To manage the inherent risks of a contingent labor force, organizations will need to address any shortcomings in existing internal processes and systems.
New Strategies For A New Workforce
As non-traditional forms of talent continue to grow in importance, organizations will need new strategies to attract and manage independent contractors, SOW-based labor, and freelancers. For some companies, that will mean implementing a new solution for managing their independent workers. For others, it may mean closing the gaps in their GWM program.
Now that you know what to focus on, it is time to take action. Start by identifying at least one of the five pillars above that your organization can focus on to improve its Gig Workforce Management program today.
How is your organization preparing for the future of gig workforce management? Drop us a line today to chat about how we can help you navigate the complexities of the gig-economy!