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[ 44 ] HRO TODAY MAGAZINE | APRIL 2014 to drive ultimate value from their non-employee workforce. Ardent Partners recommends the following strategies and approaches for those enterprises seeking to improve their contingent workforce performance: • Understand the ramifications of contract talent. Where is contingent labor currently being utilized? Which projects are tied to contract talent? What are the milestones and delivery items attached to those projects? Is there a clear picture of the contract workforce? These are all valuable questions to ask; those organizations that cannot answer these inquiries are the ones that do not have the capability to drive value from their contract talent and properly align these workers with the enterprise projects that require their skillsets. • A little "help" goes a long way. Solutions such as MSPs and VMS offerings are designed specifically for the contract workforce industry and offer veritable value in managing contract talent. MSPs are well-known experts in managing day- to-day operations for all contingent workforce management processes, while VMS technology is the ideal solution for driving efficiencies within complex contingent labor management. • Compliance initiatives need to be top-of-mind. In the pursuit of top-shelf talent, enterprises are turning to independent contractors. It is imperative to implement robust compliance measurement strategies to ensure that independent contractors are properly classified and managed. • Analytics is the key to an intelligence goldmine. Many enterprises sit on a goldmine of contingent workforce data, most of which can be leveraged to improve the greater contingent worker management program and gauge the performance of key contingent workers. Agile analytics represent the next wave of business intelligence within this industry and will help enterprises drive multi-functional value out of contingent workforce data. Procurement can utilize spend and supplier data, while HR will benefit from talent management intelligence. • Identity management capabilities must be streamlined and enhanced to avoid the loss of intellectual property and sensitive information. Too many contractors and temporary workers walk off-site with continued access to enterprise systems. A well- thought offboarding process can go a long way in securing IP and sensitive financial data/information. For the Future The recommendations below can help organizations best prepare for what's ahead in the contingent workforce industry. • The "blended" workforce is real, and total talent management is an ideal strategy to manage this talent mix. The lines are becoming blurred between traditional and contract talent, as more and more enterprises blend these two very different workforces together for the greater good of the organization. Recruitment process outsourcing will arise as an important offering in the pursuit of total talent management, as its engagement functionalities will prove to be a positive force in managing the modern blended workforce. • The pressure to find, engage, and retain top-tier talent will intensify. The talent wars will continue to rage, and enterprises across the globe will see their need for unique skillsets increase as the months pass by. Social sourcing and social networking will be ideal strategies in the next generation of contract talent acquisition. • eWaaS will throw a wrinkle into contingent workforce management. Enterprise-workforce-as-a-service (eWaaS) is the freshest tactic in the contingent worker management toolbox, and organizations will seek to source more contract talent from online labor marketplaces. However, executives must be able to effectively balance cost, compliance risks, and talent. Contemporary Scope of the Non-Employee Workforce Christopher Dwyer is research director and vice president of operations of Ardent Partners and author of The State of Contingent Workforce Management 2014: A Framework for Success. This is an excerpt of the report. Ardent Partners defines the contemporary contingent workforce as falling into three main buckets, each of which has evolved significantly over the past half-decade: • Traditional temporary labor is the "classic" view of contingent labor and involves an enterprise sourcing a variety of short- term roles with candidates from staffing suppliers, agencies, and vendors. • Complex contingent labor includes statement-of- work-based (SOW) labor, professional services, and non-professional services, and is perhaps the most evolutionary aspect of modern contract talent. These aspects are complex due to the fact that they touch various divisions within the typical enterprise and need to be managed from a variety of angles, including procurement, HR, and finance. • Independent contractors is the category comprised of freelancers, consultants, and contractors. They are sourced directly by the enterprise. Independent contractors (colloquially known as ICs) carry a variety of risks (namely federal audits and co- employment) if misclassified, but often represent a superior level of talent. Contingent Labor