Talent remains a cornerstone for success in enterprises, serving as a competitive advantage, yet it also poses a substantial cost burden. Executives consistently grapple with the imperative of cost control, and with approximately 40% of the US workforce comprising contingent workers, strategic engagement with this talent pool becomes pivotal for both gaining a competitive edge and unlocking cost savings. Amid various approaches, a notable trend is the emergence of a self-sourcing model for contracting services.
The ascent of on-demand talent, acquired outside the traditional staffing firm framework, offers enterprises a unique avenue to directly engage and source talent. This is typically achieved through private or public talent pools. While this model is notably more cost-effective compared to the conventional staffing firm approach, it is not a one-size-fits-all solution and is likely applicable to a specific segment of total talent needs. Private talent pools, a core tenet of this model, empower enterprises to stay connected with known talent, such as retirees, alumni, and former interns. These individuals can be tapped for potential contract opportunities in the future, all at a cost marginally higher than traditional payroll rates.
While the self-sourcing model stands as a viable avenue for cost savings, companies need to address a crucial question: How are they actively retaining and redeploying known non-employee contractors or consultants within the organization before they decide to move on?
Advocates of self-sourcing often highlight that private talent pools primarily consist of former employees and retirees. However, talent originating from staffing firms may be missing out on proactive redeployment opportunities, leading to the loss of valuable internal knowledge, training investments, and organizational familiarity.
The proactive redeployment of contract labor emerges as a potent strategy to leverage the proven quality of known resources. This approach brings efficiency to the onboarding process, cuts costs related to training, management, and potentially agency fees. Additionally, there’s a crucial diversity and inclusion aspect that cannot be overlooked. Rebecca Perrault, VP of Diversity, Equity, and Inclusion at Magnit, underscores this point, emphasizing the need to redeploy highly skilled talent, particularly from diverse demographic groups, to contribute to the inclusive culture clients aim to create.
However, managing and understanding the dynamics of contingent workers can be challenging. Even with advanced technology or services to illuminate headcount and spending, companies often struggle to consistently ascertain who the contingent workers are, where they are working (especially in SOW or project-based roles), the projects they are involved in, the timeliness and budget adherence of these projects, and whether performance targets are being met.
Another perplexing aspect is predicting whether an assignment will indeed conclude on the original contract end date, considering that close to 65% of all assignments are extended, often mere weeks before the scheduled termination.
Yet, the considerable value in redeploying resources familiar with the organization cannot be overstated. These individuals bring a proven track record of success, necessitate minimal onboarding or training, and can immediately contribute value to the business.
In conclusion, navigating the landscape of talent acquisition and management demands a nuanced approach that combines the cost-effectiveness of self-sourcing with the strategic redeployment of known resources. By harnessing the strengths of both models, enterprises can not only achieve substantial cost savings but also optimize the utilization of talent for sustained success in today’s dynamic business environment.
