Issue link: https://www.e-digitaleditions.com/i/131821
MSP Technology. Without an integrated solution to manage vendors, onboard workers, and track spending, organizations are ill-equipped to make the strategic decisions necessary to deploy contingent labor efficiently and safely. Next, assess and define the appropriate level of access (e.g. physical access and access to systems) for each category of worker. Remember, while access protocols will vary among different types of worker categories, your organizational processes and procedures for vetting and onboarding new workers should still be consistent across all categories. The commitment among global organizations to solve the problem is growing. Forty-one percent of companies surveyed by Aberdeen Once you've defined your access and clearance categories or 'tiers,' align Group about workforce issues believe they face increasing risk related these with your supplier base. By doing so, your company can proactively to managing contingent labor. And 56 percent reported their top 2012 drive third-party resources to the appropriate access level profile associated priority was to improve visibility into all facets of contingent workforce with the employer of each resource. management. Supplier contracts and onboarding requirements should remain consistent Tackling Areas of Concern within each supplier agreement. Ensure that your company has a Conducting background checks is a routine occurrence when onboarding consistent and timely audit schedule of its supply-base to ensure the employees, but still infrequently imposed on the contingent workforce. following are in place: Consider a HireRight survey of 1,800 human resources, security, and compliance professionals that found 69 percent of companies discovered resume fabrications among job applicants. The U.S. Chamber of Commerce reports U.S. businesses lose $50 billion each year due to employee theft and • Clearly defined and consistent screening standards for all contracts with third-party labor vendors (e.g. criminal background checks, drug testing, employment and education verification). fraud. • Regular vendor audits on samples of workers to ensure your vendors are The lack of scrutiny applied to contingent labor is particularly troubling, • Indemnification clauses in all staffing, project, and service agreements. consistently screening workers per agreement. says Rob Pickell, former senior vice president of customer solutions for HireRight. "Because all mid-tier and large companies do screen Onboarding contingent workers remains a difficult issue; most companies [employees], you actually have this adverse selection process where there do not clearly assign which department 'owns' the process, and protocols are issues [in the contingent labor pool] relative to their fit within many are typically decentralized and non-standard. organizations. They're going to gravitate to temporary jobs," says Pickell. Companies should consider: • How are on boarding compliance requirements managed and Companies should consider: Who has physical access to your company sites? • What level of access do workers have and is it appropriate? • How long should they have access and how do you 'de-activate' access? • How are access badges controlled? Extinguished upon termination? enforced for third-party labor? Are those processes consistent across the organization? • How do you ensure service providers have adhered to their contractual obligations regarding background checks and certifications? • Do you have multiple non-standard onboarding processes? Do your business managers often scramble to ensure third-party resources are fully onboarded and integrated? What systems (e.g. computer networks) should these third-party resources have access to? • How does the company determine who is active? • How well does the company protect 'intangible assets', such as intellectual property? • What other assets were issued to third-party resources? • How was the provisioning process initiated? • Are those assets being properly tracked? Have they been returned if the resource is no longer actively supporting your company? • How widespread is 'maverick' buying (i.e. purchasing contingent labor from vendors that are not qualified, poorly vetted)? Aberdeen Group reports that best-in-class contingent worker management is not so different from those established by human capital management experts. In both cases, effective talent management includes onboarding (e.g. establishing building access, assigning resources) to improve time to productivity, and off-boarding (e.g. taking inventory of physical property) to protect physical and intangible assets. Reports Aberdeen Group, " best-in-class organizations are 40 percent more likely than all others to To drive compliance and visibility, companies must first map all entry have these capabilities as part of their contingent labor management points of third-party labor. Inventory the entire range of outsourced labor programs." and services, including: temporary staffing, consultants and independent contractors; SOW-based projects; IT service providers; maintenance services; Multinational companies that rely on contingent labor should establish on-site service providers; and outsourced services, delivered on-site. consistent onboarding procedures supported by processes and technology. [28] HRO TODAY MAGAZINE | APRIL 2013