HR or procurement: How about both?
CWS 3.0 - Contingent Workforce Strategies
HR or procurement: How about both?

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Previous CWS 3.0 articles have made compelling cases for both HR and procurement having ownership of contingent workforce programs. One argues that HR should lead due to its deep expertise in talent strategy, workforce planning and diversity initiatives, while another makes the case for procurement, highlighting its strengths in cost control, supplier management and operational efficiency.
However, rather than viewing this as a binary choice, the optimal solution lies in a collaborative model that leverages the strengths of both departments. HR and procurement can work together to create a robust CW program that aligns workforce strategies with financial and operational efficiencies.
HR provides critical value by aligning CW programs with overall talent strategy and ensuring a holistic workforce approach. Key arguments supporting HR engagement include the following:
Talent strategy alignment. HR is best positioned to integrate contingent workers into the broader talent ecosystem, ensuring the right mix of full-time employees, independent contractors and service providers to meet strategic objectives.
DE&I. In spite of the recent backlash in the US, many organizations will continue their focus on DE&I. HR naturally leads efforts to track and manage workforce diversity across all worker categories, including contingent workers.
HR technology integration. HR teams manage critical enterprise systems such as HRIS and applicant tracking systems, ensuring that contingent workforce data integrates seamlessly with permanent employee data.
Talent sourcing synergies. HR can optimize talent pipelines by incorporating contingent workforce sourcing into the broader employer brand and recruitment efforts, reducing duplication and improving efficiency.
Policy and governance. With HR’s role in overseeing employment-related policies, extending ownership to contingent workers enables a consistent application of company-wide governance frameworks.
Risk management. HR possesses the necessary expertise to address workforce-related risks such as worker misclassification and compliance with labor laws, ensuring consistent mitigation strategies.
Despite these advantages, HR’s traditional inward focus may present challenges in navigating the complexities of external supplier management and cost control.
Procurement offers a complementary set of capabilities that are vital to the success of CW programs. Key arguments for procurement engagement include:
Financial stewardship. Procurement excels in budget control, cost-saving initiatives and financial oversight, ensuring cost-effective workforce solutions and avoiding unnecessary expenditures.
Outsourcing strategy. Procurement is adept at negotiating contracts and managing vendor relationships, ensuring the right service providers are selected and aligned with organizational goals.
Supplier partnership management. With extensive experience in vendor negotiations and relationship management, procurement can drive supplier performance and ensure compliance with contractual terms.
Category management expertise. Procurement’s category management approach allows organizations to tailor workforce solutions to specific needs while driving consistency and efficiency in supplier engagement.
However, procurement’s approach may not always align with the strategic needs of talent management, as their focus tends to prioritize cost and contract efficiency over long-term workforce planning.
The collaborative approach is a shared responsibility. Given the unique strengths of both HR and procurement, a collaborative ownership model is the most effective approach to managing CW programs. A shared responsibility model allows each function to contribute its expertise while ensuring program objectives are met.
Key areas for collaboration include:
Strategic workforce planning. HR leads the strategy, with procurement supporting sourcing and cost control.
Supplier selection and management. Procurement manages supplier negotiations, while HR ensures alignment with talent needs.
Policy and compliance. HR develops workforce-related policies, with procurement ensuring compliance through contractual governance.
Technology integration. HR leads in system integration for workforce management, with procurement overseeing the procurement of vendor technology solutions.
Budget and performance management. Procurement controls spending, while HR evaluates workforce effectiveness.
The success of a contingent workforce program hinges on the collaboration between HR and procurement. While HR should take ultimate ownership of the program to align it with broader talent strategies, procurement plays an indispensable role in ensuring cost control, supplier management and operational efficiency.