Crafting a Value Proposition for Your Contingent Workforce Program

Whether you are new to the world of centralized contingent workforce (CW) programs or you need to transform an existing program, the baseline benefits you are hoping to achieve will likely be the same:  

• Cost Savings: Controlling bill rates and reducing rogue spend will produce immediate savings. Through continuous proper management of the CW program, cost savings will be achieved through a number of tactics, such as establishing a standard rate card, identifying a maximum mark up, capping hourly rates by category, etc.  

• Scalability and Flexibility: You can hire contingent workers for a period of time when your organization needs to scale operations based on fluctuating project needs, seasonal demands, or market conditions – avoiding the costs associated with maintaining a large full-time staff during slower periods. 

• Specialized Skills: Contingent workers are often experts in certain niche skills, so they can close the gap in your difficult-to-fill roles.  

• Trial Period: We all know that sometimes you hire a permanent employee, and they turn out to be a poor fit for the job. With contingent workers, you do not have to commit to permanently hiring them – you can ‘try before you buy’, and it could lead to a full-time offer once you know they are right for the role.  

This list entails the minimum benefits of a CW program as defined by industry standards, but how do you know if your program is adding value to your organization? And how do you even define value?

Defining Program Value

It looks different for every organization − workforce solutions are not one-size-fits-all. Each program should be tailored to fit the unique culture, requirements, processes, and policies of your company.  

A program can only succeed if it effectively addresses the challenges faced by your organization, and the users and stakeholders clearly understand the benefits of the program to both the organization and themselves. It’s crucial for program creators to listen to your needs at the start of the program, define the program’s value from the outset, and share that value proposition across your organization.  It’s vital to have the right MSP partner who understands the importance of this crucial step, and whose tailored solution will solve your workforce challenges. 

Recognizing Stakeholder Values 

Working with your chosen MSP partner, the first step required to establish the contingent workforce value proposition involves gaining a comprehensive understanding of your workforce’s current state and its challenges by hearing various stakeholders’ perspectives. The necessary stakeholders at this stage should include Corporate Partners (e.g. Executives, Finance, Compliance, IT, Legal), Hiring Managers / Users, Staffing Partners, Contingent Resources, and Supply Chain.   

Your MSP will build a strategy based on the feedback received through one-on-one interviews, surveys, town halls, and division meetings to understand which components of your workforce strategy are currently working and which ones are not. If you are establishing a First-Generation program, for example, start by asking these stakeholders what they would like to see in a contingent workforce program. If your organization’s needs have evolved, you will want to know what was not working and how those components can be improved to encourage greater adoption.  

The information gathered may include ROI drivers such as cost savings, risk mitigation, and improved quality, as well as the impact a program will have on each stakeholders’ role. Remember, each stakeholder focuses on a different aspect of your organization, so they will all hope to get something different out of the program. 

 Some examples of their expectations might include: 

• Corporate partners might prioritize risk mitigation, security compliance, contractual adherence, cost savings, and ultimately achieving a true ROI on contingent workforce program expenditures.   

• Hiring managers might see success as quicker times-to-fill and a lower attrition rate, empowering your organization to leverage a full staffing model to ensure projects remain on track. 

• Staffing partners might look for increased market access, fair and equitable margins, and transparent feedback. 

• Contingent resources might value ease of use, a seamless onboarding process, and competitive pay rates. 

• Supply chain might prioritize improved efficiency, having a single point of contact, and accountability to contingent program success. 

Uncovering each stakeholder’s definition of success will not only encourage smooth program adoption but also address potential objections before they arise. By tackling perceived concerns early on, you can prevent negative opinions from spreading like wildfire throughout your organization and will set the MSP program up for greater success.  

Making the Right Decision 

But once you have all their input, how do you know the decisions you make based on their varying perspectives are going to be sustainable and make sense for the overall program strategy?  

A good MSP will guide you through the process and consult with your organization’s program leaders and focus on the following questions to be certain: 

1. Value

Is it a good idea to build and implement this contingent workforce program? Does this fit into our organization’s overall strategy? Does it align with our values? 

2. Investment

Does this contingent workforce solution fit in the budget? And can we afford the tools and processes required for program success? Will the cost be proportionate to the problem it’s solving? 

3. Capability

Do we have the internal capability to execute this? Do we have the right talent, business processes, technology, etc. to support the implementation? Do we have the right MSP partner? 

4. Authority

Have we established who has the authority to approve these decisions? Are they empowered at the appropriate level? 

Creating a sustainable program that addresses what each stakeholder values is crucial for program success. For contingent workforce stakeholders, it’s important to remember that a program’s perceived value will vary – acknowledging these differences from the start and ensuring they fit into the overall strategy and business case will lead to a best-in-class program that meets diverse needs.  

Your organization’s success depends on your workforce, so your top priority should be adapting your workforce strategy to ensure it is secure and delivers the desired results – and a workforce solutions partner is here to guide you through the process.  

If you are interested in learning more about this topic and you happen to be attending the CWS Summit in Dallas, Texas on September 16th-17th, be sure to attend the roundtable session I will be participating in, ‘Building the Contingent Program Value Proposition’, on September 16th from 10:30 AM – 12:00 PM CT. This blog provides a quick glimpse into what I’ll be speaking about, and I’ll be sharing many more industry insights for you to walk away with. You don’t want to miss this session – I look forward to seeing you there!