You would know one when you see one, but the problem is that they're mostly invisible. They are usually embedded deep in a department, reporting directly and only to the hiring or project manager. They don't fill out timesheets making their time and whereabouts difficult to track. No, they are not covert agents, they are statement of work (SOW) consultants, and here are three primary challenges that swirl around them:
- Misclassification. This is a growing concern for those who use consultants and independent contractors who perform work in the United States. Are they properly classified as a 1099 employee? You won't know until they are visible to you and you can account for them.
- Workforce mix. Do they really need to be in the consultant category? Is the function they perform more appropriate as a traditional employee?
- Talent cost. This is related to the above. Is their category a mask for higher rates? Sometimes, after a closer look at an SOW engagement, you may find out that it's really more a time and materials scenario rather than one driven strictly by deliverables and milestones. The latter usually carries a higher price tag.
Tackle the complexities of SOW now. Join next month's webinar to hear about CW program challenges and effective strategies around SOW consultants:
Webinar: The Harsh Truth about SOW
Date and time: Wednesday, February 16, 2011 10:00 pm, Pacific Standard Time
Sponsor: Fieldglass Inc.
Surveys have shown that companies of all sizes are concerned about how to address SOW spend. This is not surprising given this size of this market is estimated to be three times that of traditional temporary agency spend globally. Meanwhile MSP and VMS providers loudly proclaim the value of their service and technology offerings and it is often hard to separate fact from fiction. Join Bryan Peña, VP of Contingent Workforce Strategies and Research and his panel of experts buyers in an in depth discussion about how today's most successful companies are REALLY handling SOW spend and the strategies you can deploy within your organization to ensure SOW success.