CWS 3.0: August 20, 2014

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Deal with change, but focus more on progress

“Change is the only constant.” That is a common refrain in the dynamic world of contingent labor, and more specifically with respect to how organizations are redefining how work gets done. The fact is today’s companies can use many different types of labor to get the job done. From statement-of-work consultants to freelancers to workers leased through a staffing firm, the different categories of labor available to companies create complexity. Old systems are being replaced by new ones introducing change in how things are done and managed. Getting a handle on that change and creating value is a challenge to even the most sophisticated providers and buyers. Further, the never-ending stream of mergers and acquisitions as well as the introduction of disruptive engagement models like freelancer management systems (FMS), things are only going to become more complex and faster-paced.

Add that to the legal landscape getting more intricate, the growing pressure to do more with less, and we have a contingent workforce manager role’s that is continually evolving. How will it advance? What can providers do to become relevant for the long term? The key is not to drive and evangelize change, but to drive and evangelize progress. While change describes the process from one state to another, progress implies movement toward an aspirational goal. While we can all agree things are changing, what are we progressing toward? What is the new model? How is the ecosystem dealing with the change?

The best way to determine what the future holds is by comparing how other industries have dealt with similar times of wrenching change. Take the travel industry. For the longest time, people relied on travel agents to book their travel. Companies were created solely with the mandate to handle the travel needs of organizations. (While they still exist, their role is vastly different.) With the rise of technology, the role of the travel agent changed. It now became possible through technology to book airfare, reserve your hotel and rent a car without ever speaking to an agent. Technology removed the layers. Put another way, technology disintermediated the chain, fundamentally changing the way corporations and individuals handle travel.

This applies to every market, from logistics services to office supplies — and the world of contingent labor is no exception. With the rise of online staffing and widespread use of VMS technologies, we see this happening in real time. We all get a front row seat. And while no one can say exactly how this will all end up, by recognizing that future progress may be found by looking at other industries, we can all be set up for success. We are not alone.