Managed Staffing: Evaluating A New Program
The decision to control how an organization uses temporary labor or perhaps more accurately
, staffing providers is typically one born of a desire to eliminate redundancy and improve the cost efficiency of using temporary workers as a part of the workforce. The need to determine a way to better manage temporary staff procurement is frequently revealed by a series of events that highlight that the company is using what feels like an unreasonable number of staffing providers.
We use the term "feel" because for many, moving from distributed control to centralized control begins as a subjective realization that there is not as much order as there should be. In other words, the company's control and management comfort level has been exceeded. This reality pushes the company to perform a more objective analysis to determine if there is a need for a managed staffing program.
"Companies typically move away from distributed management of staffing suppliers and toward a centralized managed staffing program when its temporary labor expense begins to approach or exceeds $5 million," said Michael Townsend, President & CEO of Townsend & Associates, Inc., of Morris Plains, N.J., a prominent staffing & recruiting firm providing staffing solutions to Fortune 500 companies in a variety of industries.
Townsend noted there are large organizations with temporary labor expenses that exceed $5 million that have not yet deployed a managed staffing program. Annual expenses of $5 million account for approximately 50 to 100 temporary employees working with the organization every single week of the fiscal year.
Even for a large organization, this is an extremely high volume of people coming in and out of the organization. In situations such as this, it is likely that there are several professional staffing providers sourcing the talent. This volume almost always leads to a desire to evaluate how that expense is being managed.
For organizations seeking greater control over their contingent workforce for the first time, Townsend explained that it typically takes one of the following three approaches:
Preferred Suppliers This approach is a best practice on the path to achieving greater control. The process whittles down the field of staffing suppliers that are contracted to fulfill the temporary staffing needs of your hiring managers.
Self-Managed Program A self-managed staffing program establishes a degree of process control and accountability. It places formalized program management over your preferred suppliers.
Partnered Managed Staffing A managed staffing program introduces a third-party staffing partner into the equation. The daily management, performance, and adoption of the program throughout the organization become the responsibility of the staffing provider managing the program.
Also according to Townsend, what follows are the typical pros and cons of each approach:
PREFERRED SUPPLIERS
Pros
Yields quality analysis of current professional staffing providers.
Poor performing professional staffing providers are eliminated.
Selected professional staffing providers have clear and defined performance expectations.
Cons
A preferred professional staffing supplier list necessitates management.
Difficult to enforce.
Limited visibility over cost efficiency.
SELF-MANAGEMENT
Pros
Introduces standard professional staffing procurement processes.
Establishes internal cost expectations and guidelines.
Cons
Requires dedicated staff member to manage the program.
Enforce-ability still challenging.
Performance tracking and reporting can be difficult.
MANAGED STAFFING PROGRAM
Pros
Capitalizes on the experience of the professional staffing partner, as it typically manages many staffing programs across varying industries.
Eliminates the need to have full-time staff members managing a staffing program.
Increases enforce-ability and access to program performance metrics.
Cons
Relinquishes immediate control over program costs and quality to the third-party provider managing the staffing program.
Could potentially exclude the preferred and specialized staffing of some hiring managers.
Multiple options for deploying a managed staffing program could initially introduce complexity and limit adoption.
"We've found through the years that these three approaches are all unique to each specific situation, and one of them always works best," added Townsend, who founded his company in 1999. "A diligent approach to what's needed always pays off when considering these three formulas."
by: kevizithja
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