Issue link: http://www.e-digitaleditions.com/i/316485
[ 10 ] HRO TODAY MAGAZINE | MAY 2014 Contingent Labor This reality is a far cry from what existed only a decade ago, when contingent labor was viewed primarily as a cost center that had to be continuously evaluated for efficient performance. As Dwyer put it, contingent labor is now "light years away from the simple cost center days." These days, MSP is tied to so many crucial initiatives, including major and minor technology implementations, consultative projects, and even financial and tax-related efforts, to cite a few, that yesteryear's MSP is, well, yesteryear's. "These aren't simple efforts utilizing simple talent (solutions)," Dwyer explains. They sure aren't, agrees Yvonne McAteer, vice president of sales at Buffalo, NY-based Superior Workforce Solutions. "Contingent labor used to be all about cost containment," she says. "While this is still a driver, the war for talent has changed the status quo." Many world-class organizations realize that success and competitive advantage depend on having the best skillsets to achieve strategic objectives like speed-to-market, she explains. "Innovation is critical in this regard," McAteer says. "Since people are where the ideas originate, you need to find this talent—even if it exists outside the current workforce. That's what we do for them. Contingent labor enters the organization through the MSP program." Even midsize companies have come to realize the need to explore atypical workforce solutions that involve more than traditional sources of labor. "Certainly in the middle market, there is rising awareness that they must engage variable talent more," says Pat McCall, vice president and sales and solutions design, Americas, at Atlanta-based MSP provider Randstad Sourceright. "This creates the need to manage this blended workforce more holistically, otherwise there is the risk of many parts moving independent of each other. That's why an MSP program is critical—it assists SMBs to build sustained value around the management of variable talent." Cost Still Counts While strategic talent deployment appears to be the primary driver today for launching an MSP, the cost efficiencies, as Dwyer alluded to earlier, are not to be discounted. Others agree. "Our clients, both large and midsize organizations, are becoming or wanting to become a lot leaner, which in turn is compelling their supply chain and talent acquisition groups to more openly embrace the concept of outsourcing," says Anne Osty, vice president of sales and marketing at Chicago-based MSP provider Staff Management | SMX. "An important part of the value that MSP brings is really the supplier management, which has evolved from a way to drive down costs to more comprehensive, end-to-end solution. This includes talent sourcing, as well as contract management, performance management, and compliance management." Many MSP providers see their work as neatly hinged to their clients' overall corporate strategy and related talent objectives. Osty notes that her firm's program directors typically sit at the strategy table with HR staff, business unit leaders, and even C-level executives to fashion workforce solutions to specific business needs. "Our program directors are seen as experts in the non-employee workforce, providing clients with aggregate market data trends and other crucial information to support their decision-making," she says. "Clients are looking to leverage processes and technology that gives them the ability to manage the total workforce in all its variability. That's where we come in." Rising Role of VMS MSP is just part of the deal for many large and midsize enterprises. As Osty points out, technology—in this case VMS—is equally important. Dwyer agrees. "VMS platforms are linked to the next generation of contingent workforce management solutions helping enterprises better manage the talent acquisition and workforce aspects of their programs," he says. Simply put, VMS is the software automating the hiring, onboarding, and management processes involved in MSP is tied to so many crucial business initiatives, including major and minor technology implementations, consultative projects, and even financial and tax-related efforts.