Total Workforce – bridging the gap between employees and contingent workers
Talent is the fundamental force behind business growth and the key differentiator for organizations across the globe. It is the single most important factor that determines whether an enterprise succeeds or fails, which is why managing and optimizing your total workforce is so critical.
The on-demand workforce is trending – and here to stay
What has changed in organizations in recent years is how that talent is structured, how it is sourced and its relationship to the organization. The use of non-traditional, contingent labor has significantly increased and it has a considerable impact on business strategy. 92% of organizations cite non-traditional talent as a moderate to vital aspect of their overall corporate people strategy (source: Ardent Partners: The state of contingent workforce management, 2014). And it has become very clear that this trend is here to stay. According to Workforce 2020, a recent study by Oxford Economics and SAP, 83% of HR executives intend to hire more contingent workers in the next three years.
The composition of this new workforce, consisting of traditional employees and external workers, requires organizations to rethink how they manage and optimize their “total workforce”. But it’s not as easy as it may seem. Organizations face many barriers to seeing the “Big Talent Picture” and helping every single worker to reach their full potential. With HR managing full-time employees and Procurement managing external workers, companies often lack visibility and understanding into what’s happening with ALL their talent. Barriers include inconsistent operating processes, distributed information and siloed and inadequate systems.
What does total talent management mean?
HR leaders are instrumental to driving the evolution of a total workforce management approach. While traditionally the provisioning and management of non-employee workers fell on procurement and line managers, the need for HR to get involved increased as the use of external workers increased. It is now up to HR to take the lead on understanding, managing and optimizing the total workforce in order to gain the competitive advantages from an engaged and productive workforce.
Total workforce management bridges the gap between employees and contingent workers and allows organizations to manage all talent under a single, centralized platform of capabilities, processes and solutions. Of course, applying select HR principles and talent processes to the management of contingent workers must happen under consideration of compliance and risk of co-employment. And there are considerable gains to be realized from this approach: better alignment and engagement of contingent workers, faster productivity, more efficient processes, cost saving, risk mitigation and actionable insight into the total workforce.
According to Ardent Partners, amongst the main capabilities for best-in-class total workforce management are:
- Formalized collaboration between procurement and HR
- Human capital principles applied to management of contingent labor
- Linkage between traditional and non-traditional workforce data
- Direct integration between contingent workforce management and HCM solutions
The SAP difference
SAP recognized this important trend early on and crafted a clear Total Workforce Management strategy. With SuccessFactors’ suite of leading HR and talent solutions and the acquisition of Fieldglass, the leading Vendor Management System provider for contingent labor and services procurement, SAP is unmatched in its end-to-end solutions for best-in-class management of an organization’s total talent.
Continuing its execution of this vision, SAP announced the latest integration between Fieldglass and SAP SuccessFactors Employee Central with the November release from SuccessFactors. Data from Fieldglass can now be uploaded into the contingent worker profile in SAP SuccessFactors Employee Central, increasing visibility into the external workforce, breaking down the silos between procurement and HR, and bridging the gap between employees and contingent workers.
To learn more about how a total workforce management strategy can give you a competitive edge and enable success at your company, check out the latest assets from SAP SuccessFactors on the newly launched Total Workforce Management Digital Hub . From leading analyst reports to customer success stories and videos, you’ll find plenty of information on the important integration between HR and Procurement.