At a recent AMS roundtable, attendees unanimously agreed that cost savings remain a top priority in talent acquisition strategy. This aligns research from SIA, which shows a rise in contingent hiring and record-high spending on services procurement programs in 2023, as organizations increasingly turn to their nonpermanent workforce to achieve cost efficiencies.

Roundtable participants also agreed that understanding the true cost of their workforce — permanent or via an alternative nonpermanent model — was not as simple as comparing salaries. The shift in managing the nonpermanent workforce, from a procurement-owned “problem” to a strategically integrated, flexible resource jointly owned by talent acquisition and/or HR — can enhance overall understanding and alignment with talent strategy.

Having a considered, integrated and well-understood nonpermanent workforce, engaged through various compliant models, offers numerous advantages. It enables access to niche skills on a flexible basis and supports cost-effective service delivery for specific projects.

How to Effectively Triage Your Hiring Requirements

Focus on visibility and simplification — acknowledge that hiring, regardless of the method, adds to the workload of already busy hiring managers. Any solution should be intuitive and designed to support hiring teams, not create additional hurdles.

Hiring managers often don’t understand the different routes through which to engage non-permanent resources or the risks associated with engaging through the “wrong” route. Solutions should simplify resource acquisition and empower managers to make informed decisions.

A triage solution must be straightforward and require minimal training — otherwise, it risks low adoption, making the implementation effort ineffective.

Technology as an Enabler

Many perceive the VMS as solely a procurement tool, believing the technology needed for total visibility and management of the complete workforce, including DE&I monitoring and reporting, doesn’t exist.

MSPs can assist organizations in educating their teams on the benefits of a VMS, such as improved user experience, consistency and streamlined processes across all hiring types. They can also support with the VMS relationship and help to shape their value propositions. According to Matt Norton, director of workforce solutions research at SIA, a negative Net Promoter Scores against VMSs usually comes from organizations that end up with a “standard solution,” due to the internal lack of knowledge and expertise needed to fully optimize and maintain a VMS for their specific needs.

To enable cost reduction strategies from the non-permanent workforce, an effective VMS is key for visibility, analysis, compliance and efficiency.

‘Smart strategies for reducing costs through your non-permanent workforce’ was held on Nov. 6. The next roundtable in the series will be held in February 2025 courtesy of AMS.