With the New Year approaching what are the hot categories to review for your company this year?
Today’s post is by Mark Davis; Sr. Vice President of Operations and CTO at SafeSourcing.
This week we began a series of blogs looking at the hot categories being expected to be sourced by companies in 2013 starting with a view of mobile products, managed services and marketing and social media planning. Today we will take a look at Contingent Labor Services.
We talked a few days ago about the changes that are happening in the workforce that are causing companies to have reduced staffs whether due to their decisions or due to external factors such as baby boomers retiring or a lack of talent in certain areas of the country. Because of these changes there have been two big shifts that will continue in 2013; one, managed services, we have covered, the second, is contingent labor providers.
These providers supply temporary personnel, which can be contractors, consultants, independent contractors or temporary labor resources but in every case they are meant to augment a company’s staff in a particular department without creating a long-term commitment to adding more employees they may have to just lay off.
There are obvious disadvantages with this approach as it does not instill long-term loyalty and in some cases the costs to train new contingent staff can be quite high. The flip side of the coin is what we will be looking at today as this becomes an increasing trend in 2013.
Good talent in non-core areas – One of the biggest reasons companies turn to contingent labor is for resources in departments and areas of the company that are not part of their core competency. A company that makes a million loaves of bread may have the means for high priced IT talent but not the management or infrastructure to support a permanent team. Outsourcing the positions and having them managed by a Managed Service Provider is often an option for companies like these as they concentrate on what they do best.
Use as needed – One of the nice things about contingent labor is being able to use the resources as you need them. For seasonal companies this is a big advantage as they are able to staff up for periods of time without the expense of laying people off when things get slow. As more companies look to take a “project” approach to their business the need for a temporary workforce will continue to gain appeal.
Talent pool is shallow – Many times companies are moving to contingent labor and consulting firms because they have no choice. Larger cities have pulled a lot of talent away from the more rural areas leaving businesses with little choice but to use contingent labor for their high caliber needs. Entering 2013, many companies will be forced to pay a higher premium for a good temporary workforce rather than settle for resources that cannot deliver what they need.
For more information on how SafeSourcing can help you source your contingent labor needs, please contact a SafeSourcing Customer Service Representative. Please join us for the conclusion of this series as we wrap up the 2013 Hot categories with Travel Related Categories.
We look forward to your comments.